Is Alabama The Next Distressed Property Hotspot??

[Kyle Gagnon]

Foreclosures are ticking up in Alabama — over 5,500 filings in 2024, with 1 in every 1,600 homes in foreclosure already this year. Meanwhile, institutional investors bought 11% of homes sold in the state last quarter. Prices are still affordable (median under $290K statewide), and rental demand in markets like Birmingham and Huntsville remains strong.

Seems like there’s a window here for value-add investors who can move fast and manage rehabs.

Anyone here actively investing in distressed deals in Alabama? What markets are you watching — Birmingham, Mobile, Huntsville?

Let’s talk.

[Michael S.]

@Kyle Gagnon - combining data for the state of Alabama is not of value.  The real estate markets of Huntsville, Birmingham, Montgomery, Mobile and the Gulf Shores are all very different entities.  

The opportunity for value add remains limited in Huntsville due to prices.  We are not seeing a ton of foreclosures here as you are alluding to.  The rental market remains stagnant, not "strong".  

Would greatly enjoy hearing about your personal holdings in Alabama, Kyle.  Where do you have properties in the state?  If you don't have anything in Alabama, then what was the point of this post?  Your comment "let's talk" suggests you have something to sell - I'm going to guess this is actually a post trying to get business for funding deals.   

@Michael Ewers - nothing has changed recently in Huntsville.  Although we've actually bought more in 2025 than sold thus far, which is a change from 2024.  No idea on Birmingham.  I've also bought 2 OOS over the past year given the limited opportunities locally.