Beyond Bending Tell You How
Huntsville, Alabama, is a city that has been consistently ranked as one of the best places to live in the United States. It has a strong economy, a growing job market, and a low cost of living. With all these factors in place, it’s no surprise that the Huntsville AL housing market has become an attractive destination for homebuyers, real estate investors, and developers alike.
However, with the influx of people and the growth of the city, the Huntsville AL housing market has experienced significant changes over the years. In this comprehensive guide, we will take a deep dive into the current state of the Huntsville AL housing market, including its trends, challenges, and opportunities.
The Current State of the Huntsville AL Housing Market
The Huntsville AL housing market has been experiencing a period of growth and stability over the past few years. According to Zillow, the median home value in Huntsville is $219,000, which is higher than the national median home value of $216,000. The average price per square foot in Huntsville is $107, which is slightly lower than the average price per square foot in the United States ($118).
One of the reasons why the Huntsville AL housing market is attractive to homebuyers is its affordability. The cost of living in Huntsville is 8% lower than the national average, and the median household income is $61,000, which is slightly higher than the national median household income of $60,000.
Another factor that contributes to the growth of the Huntsville AL housing market is its strong job market. Huntsville is home to several top employers, including NASA’s Marshall Space Flight Center, the U.S. Army Aviation and Missile Command, and the HudsonAlpha Institute for Biotechnology. These companies provide high-paying jobs and attract professionals from all over the country.
Huntsville AL Housing Market Trends
Low Inventory Levels
One of the biggest challenges facing the Huntsville AL housing market is the low inventory levels. According to the Huntsville Area Association of Realtors, there were only 1,138 homes for sale in the Huntsville area in January 2021, which is a 33% decrease from the same time last year.
The low inventory levels are due to several factors, including the high demand for homes and the lack of new construction. As a result, homebuyers are competing for a limited number of homes, which has driven up home prices and made it difficult for first-time homebuyers to enter the market.
Increasing Home Prices
Another trend in the Huntsville AL housing market is the increasing home prices. According to Zillow, home values in Huntsville have increased by 8.3% over the past year and are expected to continue to rise by 5.9% over the next year.
The increasing home prices are due to the high demand for homes and the low inventory levels. As more people move to Huntsville for its strong job market and low cost of living, the demand for homes will continue to increase. Additionally, the lack of new construction has limited the supply of homes, which has led to higher prices.
Shift Towards New Construction
Despite the low inventory levels, there has been a shift towards new construction in the Huntsville AL housing market. According to the Huntsville Area Association of Realtors, there were 1,341 building permits issued in the Huntsville area in January 2021, which is a 39% increase from the same time last year.
The shift towards new construction is due to the high demand for homes and the lack of existing homes for sale. Homebuilders are taking advantage of the market conditions by building new homes to meet the demand.
Huntsville AL Housing Market Challenges
Lack of Affordable Housing
One of the biggest challenges facing the Huntsville AL housing market is the lack of affordable housing. According to the National Low Income Housing Coalition, a household in Huntsville would need to earn $19.96 per hour to afford a two-bedroom apartment at fair market rent.
The lack of affordable housing is due to several factors, including the high demand for homes, the low inventory levels, and the lack of new construction. As a result, many low-income families are struggling to find affordable housing in the Huntsville area.
Competition for Homes
Another challenge facing the Huntsville AL housing market is the competition for homes. With low inventory levels and high demand, homebuyers are competing for a limited number of homes, which has led to bidding wars and higher home prices.
Additionally, out-of-state buyers are entering the market and driving up home prices. Many of these buyers are attracted to Huntsville’s strong job market and low cost of living, and they are willing to pay a premium for homes.
Impact of COVID-19
The COVID-19 pandemic has had a significant impact on the Huntsville AL housing market. In the early months of the pandemic, home sales declined as many buyers put their plans on hold. However, the market quickly rebounded, and sales have been strong ever since.
The pandemic has also led to changes in the way homes are bought and sold. Many real estate agents are now offering virtual tours and other online tools to help buyers and sellers navigate the market safely.
Huntsville AL Housing Market Opportunities
Strong Job Market
One of the biggest opportunities in the Huntsville AL housing market is its strong job market. Huntsville is home to several top employers, including NASA’s Marshall Space Flight Center, the U.S. Army Aviation and Missile Command, and the HudsonAlpha Institute for Biotechnology. These companies provide high-paying jobs and attract professionals from all over the country.
The strong job market has led to a growing population and an increasing demand for homes. As more people move to Huntsville for work, the housing market is expected to continue to grow and provide opportunities for real estate investors and developers.
New Construction
Despite the challenges facing the Huntsville AL housing market, there is an opportunity for new construction. With low inventory levels and high demand, there is a need for new homes to be built to meet the demand.
Real estate investors and developers can take advantage of the market conditions by building new homes or investing in existing properties to renovate and sell. The shift towards new construction is expected to continue as the demand for homes in Huntsville increases.
Investment Opportunities
The Huntsville AL housing market provides several investment opportunities for real estate investors. The growing population and strong job market make it an attractive destination for rental properties.
Real estate investors can take advantage of the low inventory levels and high demand for homes by purchasing properties to rent out or flip. Additionally, the shift towards new construction provides opportunities for investors to partner with homebuilders and developers to build new homes.
Conclusion
The Huntsville AL housing market is a dynamic and growing market that provides opportunities for homebuyers, real estate investors, and developers. Despite the challenges facing the market, such as low inventory levels and a lack of affordable housing, the demand for homes is expected to continue to grow due to Huntsville’s strong job market and low cost of living.
Real estate investors and developers can take advantage of the market conditions by investing in new construction or existing properties to renovate and sell. Homebuyers can find affordable homes in a city that offers a high quality of life and a growing job market.
People Also Ask
What is the median home price in Huntsville AL?
The median home price in Huntsville AL is $219,000, according to Zillow.
What is the cost of living in Huntsville AL?
The cost of living in Huntsville AL is 8% lower than the national average, according to BestPlaces.net.
What are the top employers in Huntsville AL?
The top employers in Huntsville AL include NASA’s Marshall Space Flight Center, the U.S. Army Aviation and Missile Command, and the HudsonAlpha Institute for Biotechnology.
