Alabama's Hottest Markets for New Construction

Based on year-to-date new construction sales through April

Alabama's Hottest Markets for New Construction

Topics: Residential Real Estate

Markets: Baldwin County - All, Birmingham Metro, Huntsville-Madison County, Lee County, Montgomery Area, New Construction

Statewide Overview: Alabama's new construction market continued to grow during the early months of 2018. Through April, there were a total of 2,326 new construction sales in Alabama, an increase of 15.5 percent from the 2,041 total sales during the same 4 month period of 2017. New construction sales are 40.2 percent above the 5-year average of 1,659 sales. 

Although residential markets in Alabama and the United States are experiencing very low inventory relative to prior years, inventory in Alabama's new construction market continues to expand. Through April, there were an average of 3,001 new construction listings per month, an increase of 15.2 percent from 2017.  The current new construction inventory is 21.8 percent above the 5-year average of 2,464 listings. In contrast, Alabama's monthly residential inventory through April is down 11.3 percent from 2017 and 22.3 percent below the 5-year average.  

Statewide New Construction Sales and Inventory

Year Year-To-Date Sales Through April YOY % Change Average Inventory Through April YOY % Change
2018 2,326 15.5% 3,001 15.2%
2017 2,014 14.3% 2,606 0.7%
2016 1,763 17.6% 2,588 3.9%
2015 1,499 0.7% 2,491 8.3%
2014 1,488 -2.8% 2,301 -1.4%
2013 1,531 10.8% 2,334 5.5%

 

 

Alabama's Hottest Markets for New Construction

Birmingham Metro: Year-to-date through April, there were 531 new construction sales in the Birmingham metropolitan area, a decrease of 2.2 percent from the 543 units sold through April 2017. There were an average of 6.9 months of supply in Birmingham's new construction market through April 2018, down slightly from 7.0 months of supply through April 2017. Year-to-date through April, new construction sales represent 11.2 percent of all residential sales in the Birmingham metro area

Huntsville Metro: Year-to-date through April, there were 516 new construction sales in the Huntsville metropolitan area, an increase of 3.2 percent from the 500 units sold through April 2017. There were an average of 4.2 months of supply in Huntsville's new construction market through April 2018, down slightly from 4.4 months of supply through April 2017. Year-to-date through April, new construction sales represent 23.4 percent of all residential sales in the Huntsville metro area.

Baldwin County: Year-to-date through April, there were 457 new construction sales in Baldwin County, an increase of 103.1 percent from the 225 units sold through April 2017. There were an average of 6.2 months of supply in Baldwin County's new construction market through April 2018, up significantly from 3.7 months of supply through April 2017. Year-to-date through April, new construction sales represent 22 percent of all residential sales in Baldwin County

Montgomery Metro: Year-to-date through April, there were 190 new construction sales in the Montgomery metropolitan area, an increase of 0.5 percent from the 189 units sold through April 2017. There were an average of 4.3 months of supply in Montgomery's new construction market through April 2018, up from 4.0 months of supply through April 2017. Year-to-date through April, new construction sales represent 14.4 percent of all residential sales in the Montgomery metro area.

Limestone County: Year-to-date through April, there were 176 new construction sales in Limestone County, an increase of 15 percent from the 153 units sold through April 2017. There were an average of 4.1 months of supply in Baldwin County's new construction market through April 2018, down from 4.9 months of supply through April 2017. Year-to-date through April, new construction sales represent 33.2 percent of all residential sales in Limestone County.

Lee County: Year-to-date through April, there were 169 new construction sales in Lee County, an increase of 11.2 percent from the 152 units sold through April 2017. There were an average of 5.5 months of supply in Lee County's new construction market through April 2018, up from 4.7 months of supply through April 2017. Year-to-date through April, new construction sales represent 25.6 percent of all residential sales in Lee County.

Mobile Metro: Year-to-date through April, there were 102 new construction sales in the Mobile metropolitan area, an increase of 7.4 percent from the 95 units sold through April 2017. There were an average of 5.6 months of supply in Mobile's new construction market through April 2018, down from 6.2 months of supply through April 2017. Year-to-date through April, new construction sales represent 7.4 percent of all residential sales in the Mobile metro area.

Tuscaloosa Metro: Year-to-date through April, there were 92 new construction sales in the Tuscaloosa metropolitan area, an increase of 37.3 percent from the 67 units sold through April 2017. There were an average of 7.1 months of supply in Tuscaloosa's new construction market through April 2018, down from 8.2 months of supply through April 2017. Year-to-date through April, new construction sales represent 11.8 percent of all residential sales in the Mobile metro area.