Just like the rest of the country, Alabama’s home rental prices have gone up significantly since 2019.
However, they are now starting to decrease and level off for the first time in some places.
A recent study by the Alabama Center for Real Estate showed rental prices in 14 cities are very much not the same throughout the state. Some of these cities are reporting prices getting higher, while others are seeing rates decrease or staying the same for an extended period of time.
One of the highest average rents in Alabama, according to the study, is in Daphne with an average cost per month of $1,662.61. The average rate in Daphne should be $1,562, the study said. This represents a month over month change of -0.16% and a year over year change of 4.42%.
One of the lowest rates in the state was in Jasper. The average monthly rent is $850.83, but, according to the study, rent in this city should be $827.77 per month. This means that there has been a month over change of 0.89% and a year over year change of 2.97%.
“Without knowing the specifics of the communities, like employment/unemployment, it is difficult to pinpoint specifics, but for most market differences, it can be attributed to supply and demand,” said Dr. Bennie Waller of the University of Alabama’s Culverhouse College of Business and an ACRE research associate. “That is the demand seems to be higher for Daphne properties. ”
Enterprise had one of the highest rates of year over year change in rent at 10.90%, with monthly rent going from $1,202.99 to $1,287.72
Talladega had one of the smallest changes year over year with a rate of 0.88% with its monthly rent slightly increasing from $993.25 to $1,001.67.
Among other metro areas, the monthly change in rents in February ranged from a decrease of 1.05% in Florence to an increase of 6.63% in Anniston. Birmingham, Huntsville and Mobile saw increases of 0.18%, 0.03%, and 2.17%, respectively. Dothan and Tuscaloosa rents are discounted by 2.43% and 2.32% respectively relative to their long-term trend predictions, while Decatur and Florence rents are at 8.93% and 14.70% premiums.
The average monthly rent in the U.S. this year is $1,975.99. Per the study, that average should be $1,873.99.
“It is one thing for rents to slow, but another for rents to decline,” Waller said. “I don’t think we will see rents returning to 2019 levels anywhere anytime soon, so affordability will be an issue until incomes rise closer to monthly rents.”
Austen Shipley is a staff writer for Yellowhammer News.
