My friend just became an agent in Alabama, he told me Alabama property market grows slowly and will continue keep growing, will catch up the growth rate as in other cities. He said is good to invest there because all the big cities do not have reasonable cap rate and the appreciate any more is in doubt. I have been in Alabama Montgomery airport once, I feel the economy is so weak compare to SF, LA, Dallas.... I believe less then 100 passengers in the airport when i was there and Montgomery is already the biggest county in Alabama.
Some areas in Alabama, the property price keep going down since 2010. Generally is raising slowly. You will not likely to see this happening in CA anywhere. For example, once the CA property market going down hill. I believe Alabama will be follow quickly. Plus there has high vacancy rate like 12%. So, I think I consider invest in other state rather then in Alabama. Please let me know what do you think of what I think?
yes I do agree with you that Alabama is a slow-growing market. But Birmingham is the biggest city in Alabama and not to mention the top grossing for Real Estate. Montgomery is second to that. The properties in Birmingham are great because the market is growing. Yes it is in Texas or LA or New York Market. If you think of it this way in Alabama there's less competition but there is a high number of properties in great locations. I just started real estate back in June and I see a lot of potential as a rookie. I take that back about Montgomery being second, how could I forget about Huntsville.
@Peter Sik how are you? I agree in regards to your comments about Alabama. I'm originally from Alabama and have lived my whole life there. Been in Florida about 3 months now. Actually, Jefferson County is the biggest county in Alabama. Mobile County is second, Madison County, third then Montgomery County. I currently have 2 rental properties in Huntsville, AL. The market there is great. I'm looking to do more investing there. The city of Montgomery, Alabama I'm hearing is a good market to. Are you looking to invest in Alabama? I know areas especially Mobile and Madison County.
I've actually been posting questions around the Montgomery market for a couple of months now w/ very little response and I figured it was because no one on BP was investing there (and possibly for a reason...?) As I investigated more, I saw the similar pattern that
@Peter Sik was speaking of - low to no appreciation on the homes.
So for folks investing in that area... is it just knowing this is for cash flow (and maybe equity growth) and not really being concerned about appreciation?
Montgomery's market seems highly dependent upon the air force base there as well as the automotive industry - the base at least provides some form of stable population of renters...
@James Jacobs hey! Are you investing in Alabama? I looking at that market and trying to get a better understanding.
Birmingham is a tertiary market. It can't be compared to LA, Dallas, or similarly populated markets.
When the market collapsed a couple of years ago the median value was $145k for the state. In 2010 when we began coming out of the foreclosure crisis the median value for the state was $169k. Tertiary cities don't suffer from the same depreciation as bigger markets. Remember, everyone said Altanta was a ghost town after the collapse. An over populated area doesn't have the infrastructure to support negative economic fluctuations. Those people move to areas like Birmingham because jobs are still available & housing is affordable.
What most people don't know is Sports Medicine was founded in Birmingham (HealthSouth). Dr Andrews is under contract with the Yankees to keep him from seeing other MLB players. 10 year, $200m contract to be exact.
UAB has been in the top 3 for medical research grants for 30 consecutive years never dipping below #3 in that span.
International Construction & Financial headquarters to many that were founded here.
Harbert, Hoar, & another I can't think of at the moment.
Regions Bank was founded in Birmingham as well as Sterne Agee.
Huntsville is in the top 5 of most intelligent cities, NASA & all the private engineers.
Mobile had the BP oil spill that everyone thought would wreck the market but all of the clean up crews, FEMA, etc., were here pumping money in the local economy while the beach tourism was non existent during the spill & clean up.
Montgomery is the capital of the state. That's all that can be said about Montgomery.
Alabama is #3 in auto manufacturing, Honda, Toyata, Hyundai, Mazda, & Mercedes.
Boeing, Airbus, & Google are also in the state.
Plus, when you win as many national championships in football as Alabama does we get the winner's paycheck. It's not small.
Don't let the stigma of incorrect information about the state or the people influence your decision to invest here. We let everyone think what they want to about us nationally while we grow, take care of each other, & cash checks in Birmingham being the #5 city in the country to build personal wealth.
Take a second look & facts about the state. It will likely surprise you with what you find. There isn't a better economy or place to invest that the Magic City or the Yellowhammer State. All we do is win at everything we do.
@Jason Cory BOOM!!
@Peter Sik I flew out there a few weeks ago and plan on investing in Birmingham. You can’t look at it from a coastal city perspective. If all you know is big cosmopolitan cities then yes it will feel like a ghost town. But, you can see and feel that it is improving. The numbers are what matters. Projected population growth+high demand for rentals+jobs+low taxes+landlord friendly tenant laws=WIN.
@Jonathan Hulen Did you only look at Birmingham? I'm considering Huntsville as well, and wonder about the pros and cons between them. Huntsville sounds great with all of the aerospace and educated population, but I wonder if its too dependent on government aerospace funding?
@Tina Huffman I did look at Huntsville. I didn’t go there in person but I did my research. The research I found online says Huntsville will be the fastest growing metro in Alabama in the coming decades. Although Birmingham will remain the largest city. I believe it has more potential for appreciation than Birmingham. But for my goals Birmingham is better because there are a lot more properties on the market in the Price/Rent range I’m looking for.
@Jonathan Hulen - thanks for your input. Alabama first went on my radar because I was considering TK and came across a Norada RE podcast #85 comparing the Huntsville, Bham, and Montgomery markets. TK aside, I thought it was good info for aligning these potential locations with RE goals, like you stated about Birmingham best meeting yours.
Hi, Tina - My husband and I are also looking into the Montgomery market, so this thread came up as we were researching Montgomery on BP. What is the “TK” you mentioned in your last post? Also, I looked for the Norada podcast you mentioned, but could not find it. Will you please give us more information so I can track down that episode? Thank you!
For your reference:
Thank you, @Marco Santarelli !!
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