As the Q3 rental market goes into full swing, the average national rent is on the rise but remains steady statewide. Whether you’re looking for a rental or just renewing your lease, there are some important market trends you need to be aware of.
Using reports from Zillow and RentCafe, we compiled data to give you the best estimate of what you can expect from rent prices in The Magic City this summer.
Renters vs. owners
54% of Birmingham is comprised of renters, reports RentCafe. However, CNN Business reports that renters and homeowners do not experience inflation equally. Their study shows that while most homeowners’ monthly payments have not risen due to fixed interest rates, inflation for renters has surged nationally– causing more renters to become “rent-burdened.”
To be considered rent-burdened, according to the The Department of Housing and Urban Development (HUD), consumers must spend 30% or more of their income on rent. This reduces their ability to afford other things, such as food, clothing, transportation or medical care. (See Alabamians need $59k income to pay rent comfortably, finds UA study)
Birmingham rental prices as of June 2023
As we reported earlier this year, rent prices were on the rise in January. Now, prices have leveled out as we move into Q3.
Here’s a rundown of the average rent in some popular Birmingham neighborhoods, using data from RentCafe.
- Southside Birmingham $1,671
- North Avondale $1,420
- Lakeview $1,361
- Five Points $1,359
- Glen Iris $1,257
Rent across the Birmingham metro area
For those of you who don’t live downtown, here’s what you can expect from rent prices in different parts of the Birmingham metro area.
- Birmingham $1,274
- Homewood $1,266
- Hoover $1,237
- Pelham $1,456
- Irondale $1,030
- Chelsea $620
- Bessemer $826