With an MSA population of 1,184,290, Birmingham is Alabama’s largest metro area. Birmingham, also called The Magic City, is located in central Alabama and is known for its rich history, good food, and wide-ranging industries. The MSA consists of 7 counties, with Birmingham located in Jefferson County.
The major industries in Birmingham that drive its economy include:
University of Alabama Birmingham (UAB) & its corresponding hospital is by far the area’s largest employer with 28,000 jobs and 1,207 hospital beds. Another Birmingham staple in the healthcare space is St. Vincent’s Health System, which is currently being acquired by UAB. The transaction is expected to be finalized in the Fall of 2024.
The Birmingham MSA has a current population of 1,184,290, with Jefferson County (662,895) and Shelby County (233,000) accounting for over 75% of the population. St. Clair County (4.25% growth, 2020-23) and Shelby County (4.06% growth, 2020-23) are the 2 fastest-growing counties. Overall, the Birmingham MSA has seen its population increase by 0.30% between 2020 and 2023.
The Birmingham MSA has 365 apartments of over 50+ units, for a total of 66,472 units.
According to CoStar, 1,800 units were delivered in the last 12 months, far above Birmingham’s 10-year average. While 12-month deliveries have been historically high, there have been few new development projects, with roughly 1,400 units currently under construction. Edgehill at Southtown (459 units / mixed-use), The Station at Lakeshore (294 units), The Fitzroy (273 units), and Livano Liberty Park (270 units) account for the bulk of these units.
The Average Rent in Birmingham is $1,224 (CoStar), while Average Expenses in Birmingham are $5,629 per unit (TKC’s Expense Averager Tool). Real Estate Taxes ($1,058/unit) and Water/Sewer ($688/unit) are, on average, the largest per-unit expenses incurred by Birmingham multifamily owners.
The Hoover/Vestavia Hills, Shelby Co, Downtown Birmingham, Outlying Jefferson County, and Homewood submarkets account for 73% of the MSA’s apartment units, while the Cahaba Heights ($1,497), Downtown Birmingham ($1,340), and Shelby County ($1,294) submarkets fetch the highest Asking Rents:
Birmingham is a city flourishing with new economic development.
In May 2024, Coca-Cola UNITED announced a $330 million investment in a new headquarters and distribution center in Birmingham’s Kingston community that will create 50 jobs. The new HQ will include a sales, distribution, and warehousing center with regional office space that will span roughly 450,000 SF.
In March of 2024, Consolidate Pipe & Supply Company, Inc announced it will invest $28.7 million to build a new corporate headquarters on Lakeshore Parkway, creating over 40 full-time jobs.
In other news, the Jefferson County Economic & Industrial Development Authority (JCEIDA) announced plans for a 1,100-acre industrial park located in North Jefferson County. The industrial park is seen as a potential automative supplier for Toyota, Mercedes, or Honda, all of which have a major presence within 75 miles. The industrial park is expecting to create over 4,700 jobs upon completion.
To view additional updates on the Birmingham market, please visit our Birmingham Market News pages:
Birmingham Market News – July 2024
Eric is originally from Memphis, TN and studied accounting at the University of Tennessee, Knoxville. He has been a Broker with The Kirkland Company since 2014 and loves the challenge of keeping up with an ever-changing industry and apartment market.
Originally from Birmingham, AL, Wade attended Auburn University with a major in Agricultural Business and Economics with a minor in Supply Chain Management. He has been a Broker with TKC since 2018 and loves the competitiveness of the business and helping clients achieve their goals.
Stephen grew up in Birmingham, AL and attended Auburn University with a major in Building Science and a minor in Business. Stephen has been in brokerage since 2014 and loves the ever-changing landscape of the business and sourcing new deals for clients that help them achieve their goals.
1. Birmingham, AL Metropolitan Statistical Area consists of 7 counties, according to Office of Management and Budget: (1) Bibb (2) Blount (3) Chilton (4) Jefferson (5) St. Clair (6) Shelby (7) Walker
2. Primary Sources: (1) https://fred.stlouisfed.org/ (2) YardiMatrix (3) RentCafe.com (4) CoStar (5) rcanalytics.com (6) www.bls.gov (7) https://www.bizjournals.com/birmingham (8) https://www.birminghambusinessalliance.com/
3. Sales Comps are from 9/1/2023 – 9/4/2024
4. Development Pipeline as of 9/5/2024
5. This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty, or guarantee, expressed or implied as to its accuracy
