Alabama Housing Market Vitality

Market Rank

sixteen

Alabama metro area house prices are forecasted to underperform the national market over the next twelve months. Currently, the market is tracking the overall U.S. market. Compared to 12-months ago, Alabama’s housing market has strengthened. Current local economic conditions support an estimated 10.9% increase in house prices over the next twelve months. Based on the housing market vitality of the thirteen metro housing markets which comprise it, Alabama’s housing market ranks sixteenth amongst all states and D.C. The three-month outlook is negative.

Housing Market Vitality

Housing Market Vitality summarizes the impact of economic conditions on house prices. A value of 100 corresponds to conditions supporting current price appreciation; values less than 100 correspond to a dampening effect and values greater than 100 indicate a positive impact on house prices. A housing market vitality value can be interpreted as a growth rate. Hence, a reading of 105.8 can be interpreted as a 5.8% annualized increase in house prices.

Alabama Metro Housing Markets

Alabama is comprised of thirteen metro housing markets that account for nearly 76% of the state’s population. The Yellowhammer State metro housing markets are unique in their demographics and local economies and exhibit trends that are distinct from the national and state narrative. Each metro market presents its own unique opportunity.

METRO AREASITUATIONOUTLOOKUS METRO RANK (/402)
Anniston-Oxford-Jacksonville, AL Tracking Negative165
Auburn-Opelika, AL Underperforming Negative253
Birmingham-Hoover, AL Tracking Negative144
Columbus, GA-AL Underperforming Negative259
Daphne-Fairhope-Foley, AL Underperforming Negative311
Decatur, AL Outperforming Negative127
Dothan, AL Underperforming Negative368
Florence-Muscle Shoals, AL Underperforming Negative191
Gadsden, AL Outperforming Negative146
Huntsville, AL Outperforming Positive17
Mobile, AL Underperforming Negative230
Montgomery, AL Underperforming Negative292
Tuscaloosa, AL Outperforming Negative155

Industry Specialization

Alabama’s state economy is specialized in Construction, Other svcs, and Manufacturing. Information, Leisure Hosp, and Edu Health svcs industry sectors are less important to the state economy compared to the national economy.

Industry specialization helps explain the differing impact of industry trends on local economies in contrast to industry composition which describes the structure of the economy. A Specialization Index value greater than 100 corresponds to the sector having a greater share of the state economy than it does of the national economy. Sectors with a Specialization Index greater than 120 characterize the local economy.

Demographics

Compared to the U.S., there is a higher incidence of poverty amongst Alabama residents and they have less purchasing power. There are fewer high school graduates and a smaller proportion of the population is college educated. Alabama’s population is comparatively more diverse than the overall U.S. population.

A Demographics Index value greater than 100 corresponds to the factor being more intense in the state versus the national average. Characteristics of the local population is a longer-term factor that influences the housing market.

Updated September 08, 2021 with data through July 2021