Study: March Rental Trends in Alabama Continue Upward Climb
TUSCALOOSA, Ala. — A new study from researchers at The University of Alabama, Florida Gulf Coast University, and the University of Mississippi shows that while rental prices are rising across the country, many areas in Alabama remain below the national pace of growth.
According to the Waller, Weeks and Johnson Rental Index, 12 of Alabama’s 16 metro areas experienced year-over-year rent increases above the national average of 3.4% in March.
“It seems that the rental rates are yet again on the rise in most parts of the country,” said Dr. Bennie Waller, in the UA Culverhouse College of Business and a research associate in the Alabama Center for Real Estate at UA. “In fact, 96% of MSAs saw an increase in rent prices while 65% and 25% saw increases above 3% and 5% respectfully.”
Even with these increases, Alabama’s average rent remains well below the national figure of $2,005. Only Albertville and Daphne reported average rents over $1,600. Notably, no metro areas in the state saw a decrease in rent compared to the previous year.
The study also looked at household income levels needed to avoid being classified as “rent-burdened,” a term used by the Department of Housing and Urban Development for those spending more than 30% of their income on housing, including utilities. In Alabama, the average income required to avoid rent burden is around $56,000. Albertville and Daphne again lead the state, with required incomes of $67,533 and $66,279 respectively—still well below the U.S. average of $80,204.
Nationally, 11 of the top 100 rental markets require household incomes over $100,000 to avoid rent burden. In comparison, Birmingham’s threshold is about $56,825—still more than $20,000 below the national average.
Complete interactive data for both the U.S. and Alabama can be found on the ACRE website.
The University of Alabama, part of The University of Alabama System, is the state’s flagship university. UA shapes a better world through its teaching, research and service. With a global reputation for excellence, UA provides an inclusive, forward-thinking environment and nearly 200 degree programs on a beautiful, student-centered campus. A leader in cutting-edge research, UA advances discovery, creative inquiry and knowledge through more than 30 research centers. As the state’s largest higher education institution, UA drives economic growth in Alabama and beyond.
