Mobile Alabama real estate is one of the most popular real estate markets among investors today. If you are a property investor, you probably know the importance of balancing housing supply and demand in an area. This balance will significantly determine the success of your real estate investment.
Mobile, Alabama is one of the best places for you to invest in property. Why? Well, simply because of its strong market. Based on data from the Alabama Center for Real Estate, houses only stay on the market in Mobile for approximately 1.5 months. This data shows how strong the sellers are in Mobile, Alabama.
Although Mobile has been battling the pandemic and its weather, the seller market in this area remains indestructible. This strong market is thanks to the many factors that determine housing markets. And that is not the only impressive thing you will find about Mobile Alabama real estate.
If you are interested in investing in Mobile, Alabama, you should learn many factors about this area. You need to know whether or not Mobile is the perfect place for you in your next property investment venture. And to know that, you need to know the many factors that affect housing in Mobile, including the population, housing and renting market, cost of living, and many more.
To help you learn more about everything we have mentioned above, we will tell you what Mobile is all about. So, keep reading to know enough about this area to decide if investing in it is the right decision you can make.
Mobile Alabama Population and Growth
The first factor that controls the housing market in Mobile, Alabama is its population and growth. Mobile has approximately 413,000 residents today. The growth of the population of this county is pretty stable over the last five years. And this kind of predictability is what you should be looking for as a real estate investor.
The population of Mobile is currently slowing down. However, this county is seeing a lot of international migration since it is a coastal county. So, you do not need to worry so much about the population decreasing over time.
The metropolitan area of Mobile has almost 430,000 residents, while the city population is just above 187,000 people. Based on data from the United States Census Bureau, Mobile has had the relatively same population over the last ten years, which shows how consistent this county is.
According to the University of Alabama Center for Business and Economic Research, the population of Mobile country will grow by almost 26,000 people by the time we get to 2040. If this prediction were to come true, Mobile will become the second largest county you will find in Alabama. Even today, Mobile county is already the fourth largest city in Alabama, ranking 126th among the largest cities in the country.
Mobile Alabama Housing Market
Now that you know about the population in Mobile, let’s talk about the Mobile Alabama real estate market. While most cities face a decrease in housing demand due to the pandemic, the opposite happens to Mobile. You will find an increase in housing demand in Mobile, Alabama since the pandemic started, which is unusual.
Based on the data from Alabama News Center, the housing market in Mobile has been on fire during the last year. You will see in the statistics how housing prices surged while inventory plummeted in Mobile during the last year. As a real estate investor, you will be glad to hear this.
Based on data from Realtor.com as of October 2021, the median listing price of homes in Mobile, Alabama is around $194,000, which is pretty affordable compared to other places in the United States. The values of homes in Mobile have increased by as much as 18.5% over the last year. According to the Zillow Home Value Index, those values have even increased by more than 52% over the last five years.
Based on a report by the Alabama Center for Real Estate, the number of homes in Alabama today is at its lowest in the last 20 years. This report also states that the median sales price of houses in Mobile increases by 19% each year.
If you are looking for good neighborhoods in the county, you should take a look at areas such as Berkleigh, Carlen, and Milkhouse. However, if you are looking for the most affordable neighborhood in the county, you should take a look at Dauphin Acres, which has a median listing price of approximately $112,000.
Mobile Alabama Renting Market
Although the population of Mobile Alabama does not increase quickly, this county is still one of the most attractive places in the eyes of renters. According to WalletHub, this county is one of the best places for you to rent thanks to a lot of factors, including good quality of life and affordability. This is one of the reasons why Mobile has such a strong rental market.
The median rent prices in Mobile are around $1,332 per month. This is the standard renting price for a standard 3-bedroom home based on Zumper. Other than that, you should also know that the renting prices in Mobile have increased by as much as 22% each year. Even so, 28% of houses in Mobile today are home to renters.
The renting prices of 44% of houses in Mobile are between $701 and %1,000 per month, which is very affordable. Most homes in Mobile are single-family homes, making up around 73% of all of the housing units you can find in the metropolitan area of Mobile. As you can see, renting in this county will cost less than the average renting price in the United States. And that is one of the things that attract renters to this county.
The average renting cost for the cheapest neighborhoods in Mobile is around $607 per month. These neighborhoods include Hannon Park, Leinkauf, and Georgia Avenue. On the other hand, the average renting cost for the most expensive neighborhoods in Mobile is between $1,193 and $1,334 per month. These neighborhoods include Church Street east, Lower Dauphin, and Summerville.
Mobile Alabama Cost of Living
One of the reasons why a lot of people are attracted to Mobile, Alabama is because of its low cost of living. The average cost of living in Mobile is very affordable compared to many other places in the United States. Based on data from bestplaces.net, the average national cost of living is higher than the average cost of living in Mobile.
The cost of living in Mobile is cheaper in many aspects compared to the national cost of living in the United States. These aspects include groceries, healthcare, housing, utilities, transportation, and many more. With an affordable cost of living, this county managed to attract many house buyers and renters. That is why investors are interested in investing in this county.
Mobile Alabama Market History
To be able to predict how the housing market is going to be in the future, you need to know the market history of Mobile. You will be able to predict the average home price in Mobile Alabama by looking at the housing prices in the past. You can do this by looking at various home price index reports for this county.
Based on a recent House Price Index, the home prices in Mobile have increased by over 58% over the last five years. Over the last year, the home prices in the metropolitan area of Mobile increased by as much as 18.2%. Over the last month, the home prices in the same area have increased by as much as 1.5%.
Now that you know the housing market history of Mobile, you also need to know the affordability of the houses in this county. As an investor, considering the affordability of homes in a certain area will help you determine and predict the rental property demand in the future. To determine the affordability of the housing in Mobile, you need to compare the median housing price and the income percentage to purchase a house in this county.
Based on a recent report on housing affordability in this county, you will see that Mobile is one of the most affordable areas in Alabama. You will be able to buy a house at a cheaper price in Mobile than in other places in Alabama. That is why a lot of people love moving to Mobile, Alabama.
Mobile Alabama Market Forecast
Based on the Mobile Alabama real estate market history, you can predict the housing prices around this area to increase slowly over time. One thing you need to note is that everything in Mobile is improving slowly and gradually. You will also note that the growth in Mobile is consistent, which is what investors should be looking for.
Mobile is full of potential when it comes to its real estate market. Why? Well, simply because of how this area attracts a lot of buyers and renters. Other than that, Mobile is also a very good place to live and grow your business.
Mobile has a government that will 100% support businesses in the county. This county also has a laid-back lifestyle that makes its residents very happy. Living in Mobile will feel like you are living in little New Orleans. Downtown Mobile is probably the economic, creative, and social hub of the entire county.
The Mobile Alabama demographics are very variable. You will be able to find people of various ages, which is why this county is filled with anything you could ever need. You will be able to find great nightlife, outdoor activities, and many other incredible activities in Mobile based on data from Niche.com.
Pros and Cons of Living in Mobile Alabama
The last thing you need to consider before you invest in Mobile Alabama real estate is the pros and cons of living in this area. You need to consider the advantages and disadvantages of living in this county because it will determine the potential of this city. Without further ado, here are the advantages of living in Mobile.
- Great Diversity. First of all, Mobile has great diversity. A most common stigma around the South is that these areas are very segregated. However, you will not find this kind of problem in this city. Mobile is one of the few cities in the South that has a lot of various people in it. The community in Mobile is made up of different races and backgrounds.
- Great School Systems. Mobile also has great school systems. The graduation rates of this county are above the graduation rates of the national average. So, if you have kids, you do not need to worry about education if you are planning on moving to Mobile. That is why Mobile real estate has great potential.
Now that you know the advantages of living in Mobile, you should also learn about the disadvantages of living in this county. Some disadvantages you should pay attention to include:
- High Crime Rates. The crime rates in Mobile are unfortunately still very high. While the average crime rate on a national level is decreasing, the crime rates in Mobile remain the same. However, this is only true for several areas in Mobile, not the whole county. So, you just have to be careful when you are choosing a neighborhood in this county.
- High Unemployment Rate. Another disadvantage of living in Mobile is its high unemployment rate. The unemployment rate in this county is 5.4%, which is still below expectation. However, because of the low cost of living in this county, you should not have to worry about looking for higher income anyway.
To sum it all up, Mobile is a great county that has a lot of potential when it comes to its real estate. This county has affordable housing and renting rates, attracting a lot of people to buy and rent in the area. As an investor, you should be interested in the potential that Mobile has to offer. And that is everything you need to know about Mobile Alabama real estate.