I’m here to make a bold claim: Birmingham, Alabama, is a better market for out-of-state investing than any other Midwest market. Yes, you read that right. And I’m curious to hear your thoughts—whether you agree, disagree, or fall somewhere in between.
Here’s why I think Birmingham deserves more attention, especially for out-of-state investors looking to build a steady, cash-flowing portfolio. My argument boils down to five key points:
1) Population Trends Favor the South
Let’s face it—people are leaving the cold behind.
The U.S. Census Bureau shows clear population trends favoring warmer climates. Alabama, for example, grew its population by 4.2% from 2010 to 2020, and Birmingham has directly benefited from this trend. Meanwhile, key Midwest states like Illinois and Michigan saw population declines during the same period, with Illinois losing 0.6% and Michigan remaining stagnant.
2) It Flies Under the Radar
Markets like Detroit, Cleveland, and St. Louis dominate the Midwest investing conversation. But what about Birmingham?
Less attention means less competition, which translates to more deals, fewer bidding wars, and greater opportunities for investors willing to explore this under appreciated market.
3) Exciting Real Estate Developments Signal Growth
Birmingham is transforming before our eyes with projects like:
• The Star at Uptown: Revitalizing the old Carraway Hospital into a mixed-use district.
• The Silos at Parkside: Turning industrial spaces into vibrant communities.
These projects (and more) demonstrate a city investing in its future. Even the permitting process has become more investor-friendly, further encouraging development.
4) It’s in the Path of Progression
Birmingham is strategically located just three hours from booming cities like Atlanta and Nashville—both of which experienced explosive growth over the last two decades. As these cities become overcrowded and overpriced, Birmingham naturally benefits as a more affordable alternative for transplants.
5) It’s Stable and Consistent
Birmingham may not have the meteoric rises of markets like Austin or Orlando, but it doesn’t have their wild swings either. Its appreciation over the past 50 years has been steady and predictable, which is exactly what cash-flow-focused investors should want.
Birmingham doesn’t get the respect it deserves from out-of-state investors, but it should. The data supports it, the developments confirm it, and the trends validate it.
Of course, you can make money in any market—but for a steady, cash-flowing portfolio with growth potential, Birmingham checks all the boxes.
I’d love to hear your thoughts. Am I overlooking something, or does Birmingham deserve a bigger spotlight in the investing world?
