The Huntsville real estate, how is the prospect? Huntsville may not be one of the most popular cities in the US. Even the name is quite strange for foreigners. However, when we talk about the state where it is, Alabama, undeniably, Huntsville is the most popular name.
More than that, the city has a bunch of attractions and historical places to attract visitors. There is the historical district of Twickenham, a place that must spoil history lovers. Yes, this place is full of buildings with classical architecture established before the civil war.
Other places to visit are Huntsville Botanical Garden, the center of aerospace, Huntsville Southern Adventure, and the Art Museum of Huntsville. Of course, those are only a few names of famous places built up in the city. It is reasonable if many people just want to come here to stay whether temporarily or permanently to enjoy the calming but interesting atmosphere.
The presence of many attractions also becomes one of some reasons why Huntsville is one of the cities in the country with good prospects for the property market. So, are you interested in investing your money in property investment in the city? Make sure to read the following explanations.
The History of Huntsville Real Estate Market
Learning about the history of the real estate market in a certain place is very important. Well, it is if you want to predict more accurately the price of houses in the future. The same thing is if a home for sale in Huntsville AL is your target.
A city is considered ideal for a property investment if the demands are bigger and stronger than the supplies. There must be many people who are interested in buying or renting a house in that place while the products themselves are limited.
Consequently, the property price must be high. And that should not be a problem at all to start to invest as long as the property prices are steadily increased and the increasing value is relatively predictable.
To know if Huntsville is ideal for investment, some reports are used to predict the future. Those reports record the history of values including them and the incredible changes. One of the reports comes from Freddie Mac, known as Freddie Mac House Price Index (FMHAPI). For Huntsville Alabama, the report is as follows.
In the last 5 years, from 2017 to 2022, the house price in the city has increased quite significantly to 88.5%. Meanwhile, from 2021 to 2022, the increase is at 29.7%. In a month, the average increase is at 4.6%.
Another report to look back at the history of the market price in Huntsville is Housing Affordability Index (HAI). The report is specifically used to measure the demand for renting properties in the past as well as forecast it for the future. The main indicator is used with a principle, which is that affordable houses tend to have bigger demands for renting properties.
Furthermore, the report also considers using other indicators to measure property prices. It is although those additional indicators are only used in certain conditions. Those indicators are the demography, people’s lifestyle, and inventory.
Based on the HAI report in the last 10 years, in Huntsville, the property price was relatively affordable. However, there were still many families who preferred renting.
The last report used to measure the history of prices in Huntsville Alabama real estate is the Alabama Housing Affordability Index (AHAI). The report is published by the Alabama Center for Real Estate. It uses the value of 100 as the basis of the affordability index number. If the result is above 100, it means that the house price in the city is considered affordable.
Based on the report from AHAI for 2021, the index number was 180 for the first quarter of the year. The number referred to the purchase ability of a little less than twice the median income. Besides, single families tend to resale homes in the metro area of the city.
Huntsville’s Population and Growth
Huntsville is said to be the biggest city in Alabama mainly in terms of population and growth. Yes, it is considered the most populated city in the state. The population growth also tends to be relatively stable in the last 10 years. It makes the city predictable when we talk about the chance of property investment.
The growth increase is influenced by many factors. Until now, Huntsville indeed has not been known yet as one of the tourist cities in the US. But there is a tendency to that. It is by seeing the rapid development of some attractions in the city. Imagine this, Huntsville currently has a historical area as well as the center of technology. Sure, there is an adventurous theme park also.
More than that, some famous companies also chose Huntsville to develop their manufacturers including the Facebook data center and the manufacturer of Mazda Toyota USA. Even the Mazda Toyota USA in Huntsville spent a budget of $1.6 million. Sure, it gives a positive effect on the growth of the population as many people migrate to the city for better jobs.
In 2022, here are the keys to population statistics in Huntsville Alabama that is strongly connected to Huntsville AL real estate.
First of all, the residents of Huntsville are more than 215,000 and almost 492,000 people are living in the metropolitan area. There are some locations included in the metropolitan area of the city. The most popular ones are Decatur and Albertville.
Second, it is reasonable if Huntsville is the most populated city in the state. In terms of the width, it is also the biggest one. However, the metro area is the second most populated city in the state.
Third, from 2021 to 2022, the population in Huntsville has increased by 1.2%. Meanwhile, for the last 12 years counted from 2010, the population increase is at 19%.
Fourth, previously, it was predicted that Huntsville would overtake Birmingham as the biggest city in Alabama in 5 years after watching the high speed of the population increase. The reality is even better than that. It took only 2 years to be the biggest one.
Lastly, it is forecasted that the population in the metro area of Huntsville will reach 530,000 in 2030.
Current Conditions of Huntsville Real Estate Market
Talking about the current condition of Huntsville Real Estate Market cannot be separated from the average rent in Alabama in general. Even the Huntsville market itself is mostly about home and apartment rentals. Yes, Huntsville is said to be one of the most demanded home rental centers in the southern area.
There are some reasons why people are interested in living in the city by renting not buying. Mostly, they live in Huntsville temporarily only for working. Many youngsters are also interested to study here since the city is affordable. Some popular universities are also here such as Alabama A&M University, the University of Alabama, and Athens State University.
Other reasons are about the people’s lifestyle. Life tends to be slow and it seems people here are more relaxed in doing activities. Many predictions also tell about Huntsville positively. The improvement of work vacancy in the city affects the property market well. It also makes the market more stable, more affordable, and with fewer risks.
Based on the report from the Alabama Center for Real Estate (ACRE), the average selling price of houses in the area of Huntsville and Madison County has increased by 18%. At the same time, the property supply is fewer than the demands. It makes the market more beneficial for sellers.
In 2022, the statistics for the property market in Huntsville are as follows. First, based on the data per April 2022, the Zillow index for home value in the city is $278,918,6. When it is compared with the price in 2021, the value will increase by 28.2%.
Second, based on the data from Realtor.com per April 2022, the average price of the home list in Huntsville is $315,000. Per feet square, the average price is $152.
Third, home supplies are limited indeed. However, from year to year, the availability tends to increase. Even the increase is at 57% only in a year.
Fourth, there are only 9 neighborhoods in the Huntsville AL housing market. The most expensive one is McMullen with an average price of $834,500. Meanwhile, the cheapest one is Merrimack with an average price of $175,000.
Huntsville Real Estate Market Forecast
Based on many surveys and reports, Huntsville is indeed considered one of the best cities to live in the US. The reasons have been explained above, and one of them is home affordability. The city, well known also as the rocket city, is also ranked as one of the cities with the best performance.
Yes, at least in 2022, Huntsville is indeed affordable. But it doesn’t seem to be too long. In April 2022, Yahoo Finance published a story about the Real Estate Market in Huntsville in the future. The story suggested the reader is not accustomed to the affordability in the city as it would no longer be like that in 2030. In that year, the story claimed that Huntsville would be very expensive.
Sure, the claim is not without references at all. The author quoted the increase rate of 20.6% for the home selling price from year to year. The percentage is found with consideration that so far, the price increase in Huntsville is stable. This way, it is projected that in 2030, the average house price in the city will be $1.1 million.
In Alabama, Yahoo Finance doesn’t only project Huntsville as an unaffordable city a decade later. Another city is Auburn. And yes, both cities indeed have similarities in terms of the property market today.
Meanwhile, one of the Huntsville Realtors, Matt Curtis, brought his own perspective. Generally, he agreed that a decade later, the average price of houses in the city will be significantly increased compared with 2022. However, he also argued that the number would be that high. Based on his opinion, the selling price rate at that time would be from $500,000 to $600,000.
While both projections seem different, there is something that is the same. Investing in Huntsville Alabama now is very profitable for the future. If it is true that the price will be so high as it was stated by Yahoo Finance, congratulations, the investor will be that rich in 2030.
On the other hand, if the opinion from Matt Curtis is what you believe, it is still good also. The city is still very prospective whether the property you buy today is for reselling or renting later.
Huntsville Real Estate Market FAQs
- Is Huntsville a buyer or seller’s market?
Based on the report from the Alabama Center for Real Estate, Huntsville is a seller market. It is seen by the median sales price for homes in the area of Huntsville and Madison County that has increased by 18% from year to year. Meanwhile, the number of supplies is limited. The supply may increase in the future but it doesn’t do too much and it may not change the condition of the market that is more favorable to sellers.
- Which is the best area in Huntsville AL to live in?
Generally, Huntsville itself is considered one of the best cities to live in the US. Some factors that influence it such as home affordability, good prospects for jobs, a slow lifestyle, and more.
But when talking about the best area or neighborhood in the city, some neighborhoods are the best choices. They are West Huntsville, Madison, New Market, Hazel Green, and Harvest. Why them? Because those areas currently are still friendly enough in terms of prices. Sure, sooner or later, the prices will be increased which is good for both the selling and rental market Huntsville.
- Is it expensive to live in Huntsville?
No, it is not. Based on some data, housing expenses in the city are 32% lower than the national average. Other things like utility and transportation expenses are also lower than national averages, they are 4% and 12% respectively.