Huntsville: Limited Housing Inventory, Strong Rental Market Growth, and Population and Wage Growth
Huntsville's real estate market continues to chart an upward trajectory. Home prices and rental rates continue to be driven by the City's booming tech and engineering sectors, affordable living costs, and high standard of living.
REDUCED EXISTING HOUSING INVENTORY: Huntsville continues to struggle with enough housing inventory for new homebuyers. Currently, new listing counts remain below new listing figures in 2022. Many existing homeowners are currently locked in with low-interest rates and remain hesitant to sell their properties, as they would have to obtain mortgages at much higher rates.
AFFORDABLE COSTS OF LIVING: Huntsville remains a city with a competitive cost of living. Despite the steady growth of its real estate market in response to growing demand, Huntsville continues to benefit from lower-than-average costs in healthcare, groceries, and transportation. This economic advantage makes Huntsville an increasingly appealing destination for individuals and families looking for a high-quality yet affordable lifestyle. U.S. News has ranked Huntsville as the second best place to live in the United States.
GROWTH IN RENTS AND HOME VALUES: Huntsville has seen an increase in both home values and rents, driven by strong housing demand and limited supply. Median rents have grown from $900 in 2016 to approximately $1,600 in early-2023. Home values are also keeping pace with rental growth, increasing from $160,000 to over $300,000 between 2016 and 2023.
STRONG WAGE AND POPULATION GROWTH: Huntsville's population and wages point towards future healthy growth of rental and home values. Huntsville's population grew by more than 20% between 2010 and 2021. Wages also grew by more than 42% within the same period. The City is a hub for the technology and engineering sector, with notable employers including NASA (with the Marshall Space Flight Center) and the Boeing Company. Sustained wages and population growth continue to drive rental demand.
Huntsville's rental market continues to display strong fundamentals that point toward long-term sustained growth, backed by limited housing supply, a growing population, and resilient wages. Don't miss out on your chance to benefit from Huntsville's growth.
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