2014 Birmingham Rental Market Forecast

I want to give you a brief 2014 rental market preview. First, I believe that rental rates are going to only rise moderately. I don’t think that across the entire landscape of the Birmingham and Hoover metro area, rents will increase significantly in 2014. I do think that in certain zip codes, the rental market will be very hot. Those zip codes are: Vestavia Hills, 35216 Homewood, 35209 Mt. Brook and Crestline Park, 35213 These areas will continue to grow rapidly because the inventory of available rental homes in those areas is very low, and yet they still remain desirable places to live for many renters. If you are looking at the landscape of the Birmingham investment community, the east side is going to be hotter than the west side. We have seen across our portfolio a movement of people from the west side to the east side. Be prepared for this trend to continue to grow the rental markets in the Center Point, Roebuck and Huffman areas. Finally, tenants are still in possession of pricing power. There is a lot of rental inventory for tenants to choose from. My advice is to get very aggressive on pricing your rental properties so you can be sure you are getting the best tenants into your homes. A rental property rented at a lower rate is always better than a vacant property! If you have any questions about what we will see in 2014 in the Birmingham metro area regarding rental properties, please contact us at gkhouses.com. We would be happy to tell you more about where we see the market going as the year continues.