Alabama, the Yellowhammer state, is a boon for beginner investors. The affordability and low cost of living are some reasons that make it a great place to invest. Whether you are looking for vacation homes or traditional long-term rentals, Alabama is your one-stop solution. What’s more? The place has low property taxes. The growing population has increased the demand for properties. Consequently, the places here now have higher appreciation rates than average. The reasons like – consistent growth in population, and affordability are enough to appeal to the investors. If you are looking to maximise your profits in the real estate sector of Alabama, you have come to the right place. We have come up with the 6 best real estate investment markets in Alabama. Let’s get started.
Huntsville – As per the nationwide report of 2022-2023, Huntsville ranked the number 1 place to live in the US. In addition, it is the top choice for investors. The houses in the city are affordable as compared to the national average. However, if you are looking for investment opportunities in this place, you should do it as soon as possible due to the growing population in the city. More population drives more competition for real estate investments which might keep the investors out of the options.
Birmingham – The tourism industry of Birmingham has made a long comeback since the COVID pandemic hit the world. Since then, it has become the supreme choice for people who are looking for vacation rental properties. The place attracted more than 3.6 million overnight visitors in the year 2021 which brought a huge amount of revenue from the tourists. The major tourist attractions of the place include the Birmingham Museum of Art and the Birmingham Civil Right institute. Besides, the population in recent areas has increased in recent years. It is an apt place for fulfilling your short-term and vacation rental dreams.
Gulf Shores – The real estate prices in Gulf Shores in October 2022 increased by nearly 18% as compared to the last year. It has been found that properties in Gulf Shores sell quickly which is in 28 days as compared to 62 days in the last year. And buying homes for sale Gulf Shores, Al is a great idea. There is no denying the fact that Gulf Shores gives you good opportunities to make real estate investments. Moreover, your kids will get quality education in the schools of this region. So, make a wise investment decision and gain good returns.
Dothan – Who doesn’t want to get inexpensive homes having high appreciation rates? If you are the one, you can’t miss out on investing in the properties of Dothan. Being the 12th fastest-growing city in Alabama between 2010-2020, the population has seen an upsurge of nearly 8.5%. Nearly 60% of the individuals residing in Dothan are homeowners. You will get the houses at low-interest rates if you want to buy the property here rather than taking it on rent. The growing demand for real estate here is making home selling faster than ever before. This growth is not going to slow down anytime soon as long as the place continues to put investment in the infrastructure.
Auburn – Auburn has a high population of renters where the home prices are average and rent-to-income ratios are great. It is useful information for landlords as well as long-term owners of rental properties. All this information shows that you can invest here to get excellent returns. Nearly 24000 students graduate from Auburn every year thereby increasing the demand for student housing options. The properties here show an increase in value by 18% every year. And if you want to get the best offer, be quick with your decisions to reap good returns.
Tuscaloosa – Before defining the trends here, you need to understand what house hacking is. It is the process where home buyers rent out their spaces or properties to tenants to make payments for their monthly mortgage. If you believe in house hacking, investing in Tuscaloosa is your answer. This place has an amazing rent-to-income ratio with a high number of renters. You can find affordable homes to make your real estate investments pay off better.
To make a long story short
Believe it or not, Alabama is a fantastic option in terms of real estate investments. To make things easier, you can always get in touch with a reliable realtor. Don’t forget to keep the above-mentioned places in mind and let your real estate investment dreams in Alabama touch the sky.