Top 5 Alabama Cities with Potential for New Housing Developments
November 11, 2022
New inventory mean more jobs for Realtors and (hopefully) better pricing for homebuyers. But what could it mean for developers and investors? Over the last year, low inventory has contributed to rising home prices across the state. We know that prices can soar due to demand in a desired area. And while it might be more expensive to break ground in one of these cities, it also could be a ripe opportunity for developers to cash-in on the demand.
Research done by Stacker takes a deeper look into 50 Alabama cities and their rising home prices. The top five cities from this list are listed below:
5. Owens Cross Roads
Considering Huntsville-Metro was just named the best US city to live in by US News & World Report, it’s not surprising that a surrounding suburb of the area has shown up high Stacker’s list.
In just one year, Owens Cross Roads saw a 22.9% increase in home pricing, making its typical home value $444,491. That is a 73.2% price increase over the last five years.
Also unsurprisingly, Alabama’s beautiful sandy beach towns can be found ranking number three and four on this list. The initial investment in these homes for developers could be more, but so could the payout, considering the short-term rental market is still thriving in 2022.
4. Gulf Shores
In the last year, Gulf Shores saw its typical home value increase 25.5% to $474,310. It’s five-year price increase coming in at an astounding 111.8%. But Gulf Shores isn’t the only Daphne-Fairhope-Foley Metro making the list.
3. Orange Beach
In one year, Orange Beach saw a 22.9% increase in home prices, taking its typical home value from five years ago, up 152.5% to $635,667.
In the last year, Equality’s average home price increased 21.5% making its typical home value, $726,102. That’s an increase of 60.7% from five years ago.
1. Mountain Brook
The typical home value in Mountain Brook, a Birmingham Metro suburb, stands at $939,200. In the last year, pricing has increased an average of 16.4% and over the last five years has increased 46.6%.
Source: Top 5 Alabama cities with potential for new housing developments Yellowhammer (November 6, 2022) Alabama REALTORS®