Rents decreasing throughout country, at lesser rate in Alabama

In some good news for renters across the country, it appears that rent increases are beginning to slow after several rapid price hikes.

The state of Alabama, however, is reportedly experiencing a slower decrease in rent prices than other parts of the U.S.

Dr. Bennie Waller, a University of Alabama professor, has helped to compile data relating to the slower increase of rent rates in Alabama.

“I think the story is that rents are decreasing across the board,” Waller said. “However, they’re decreasing at a lesser rate in Alabama than they are across the country and I think that shows here.

“Starting in June, the year-over-year change started going down in the United States and it’s going down quicker relative to what Birmingham is.”

Birmingham, which ranks No. 51 in the top 100 markets studied, was about $600 cheaper than the national average for rent but saw rents rise 0.78% compared to last month.

“Birmingham is continuing to go down, but it’s not going down as fast as the U.S. and Huntsville has gone down but has started to go back up,” said Waller, the William Cary Hulsey Faculty Fellow in the UA Culverhouse College of Business and a research associate in the Alabama Center for Real Estate.

According to Waller, the rental market in Alabama hasn’t seen as much of a correction because it didn’t over-develop like other states after the COVID-19 pandemic. As a result, the state has seen more consistent rent increases and because the Southeast has continued to be a cheaper place to develop and live, the rate of growth is above the national average.

“The rents have gone up but they have gone up at a much slower rate over time,” he said.  “Even though they went up at a much smaller rate, they haven’t fallen at the same rate as the U.S. has.

“We still have very affordable rents in Alabama, we still have good growth in terms of jobs, unemployment, low unemployment and job growth.”

Austen Shipley is a staff writer for Yellowhammer News.