Market Highlights
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.
Birmingham Economy
The major industries in Birmingham that drive its economy include:
- Automotive – Since 2011, the industry has added 5,900 jobs and $1.8 billion in investments, headlined by Mercedes-Benz, Honda, and Autocar
- Aviation & Aerospace – The Birmingham-Shuttlesworth International Airport has more than 750 acres available for operations
- Information Technology – Since 2011, the industry has added 2,300 jobs and $200 million in capital investments
- Finance & Insurance – Birmingham is home to the headquarters of Regions Bank and Protective Life Corporation
- Metals & Machinery Manufacturing – Birmingham is one of the only places in the world where the three main raw materials are located to make steel (iron ore, coal, limestone). The industry is headlined by the headquarters of the American Cast Iron Pipe Company
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.
Birmingham Population
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.
Birmingham, AL Multifamily Analysis
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:
