Why Homewood, AL Is Seeing a Spike in Rental Demand: Key Factors and What Tenants Need to Know

Introduction

Homewood, Alabama, a charming suburb of Birmingham, has seen a notable increase in rental demand over the past few years. This spike is not just a fleeting trend but rather the result of various factors that make the area highly desirable for renters. Whether you’re a young professional, a family looking for a safe community, or someone simply looking for a change of scenery, Homewood offers something unique. But why exactly is rental demand surging here? And what should potential tenants know before making the move? In this article, we explore the key factors driving this trend and provide essential information for those considering renting in Homewood, AL.

The Allure of Homewood: What’s Driving the Demand?

1. Proximity to Birmingham

One of the primary reasons for the increase in rental demand in Homewood is its proximity to Birmingham. Located just a few miles from downtown Birmingham, Homewood offers the convenience of city living without the hustle and bustle. This makes it an ideal location for professionals who work in Birmingham but prefer to live in a more relaxed, suburban environment.

The short commute to Birmingham is a major draw for many renters, particularly young professionals and families who value both time and lifestyle. The easy access to major highways, such as I-65 and U.S. 31, further enhances Homewood’s appeal, allowing residents to travel quickly to other parts of the Birmingham metropolitan area.

2. Excellent School System

For families, the quality of local schools is often a deciding factor when choosing where to live. Homewood is home to one of the top-rated school districts in Alabama. The Homewood City School District consistently receives high marks for academic performance, student-teacher ratios, and overall school environment.

The strong educational system is not only a boon for current residents but also a magnet for families moving to the area. With schools like Homewood High School and Edgewood Elementary offering excellent educational opportunities, it’s no wonder that the area has become increasingly popular among families. For more information about the schools, you can visit the Homewood City Schools website.

3. Thriving Local Economy

Another factor driving rental demand in Homewood is the local economy. The area boasts a diverse and thriving economic landscape, with a mix of small businesses, retail, healthcare, and technology companies. Additionally, Homewood’s close proximity to Birmingham allows residents to benefit from the larger city’s economic opportunities while enjoying the lower cost of living in Homewood.

The rise in job opportunities, particularly in sectors such as healthcare and technology, has attracted a new wave of residents who prefer renting to buying. These newcomers often seek apartments for rent that offer both convenience and comfort, adding to the growing demand for rental properties in Homewood.

4. Vibrant Community and Lifestyle

Homewood’s vibrant community is another significant draw for renters. The area is known for its friendly atmosphere, active lifestyle, and a wide range of recreational activities. The city offers an abundance of parks, walking trails, and outdoor spaces, such as Homewood Central Park and the Lakeshore Trail, which are perfect for families and outdoor enthusiasts alike.

The local dining scene is another highlight, with numerous restaurants and cafes that cater to diverse tastes. The city’s downtown area, with its mix of boutique shops and eateries, adds to the charm, making Homewood an attractive place for those who appreciate a lively, community-focused lifestyle.

5. Safety and Low Crime Rate

Safety is a top priority for most renters, and Homewood delivers on this front. The city boasts a low crime rate, making it one of the safer places to live in the Birmingham metropolitan area. This sense of security is particularly appealing to families with children, retirees, and single professionals. The Homewood Police Department’s commitment to community policing and proactive crime prevention has helped maintain a safe environment for all residents.

The low crime rate is a significant factor contributing to the surge in demand for homes for rent in Homewood. Prospective tenants can have peace of mind knowing that they are moving into a community where safety is a priority.

6. Diverse Housing Options

Homewood offers a diverse range of housing options, which appeals to a wide variety of renters. Whether you are looking for a cozy apartment, a spacious townhouse, or a single-family home, Homewood has something to fit your needs. The variety of properties available makes it easier for individuals and families to find a rental that suits their budget and lifestyle.

Additionally, Homewood’s rental market is known for its well-maintained properties, many of which have been updated with modern amenities. This ensures that renters have access to comfortable living spaces that meet contemporary standards.

7. Growth in Short-Term Rentals

Another trend contributing to the spike in rental demand is the growth of short-term rentals, such as those offered through platforms like Airbnb. Homewood’s proximity to Birmingham makes it a popular choice for visitors who want to experience the city while staying in a quieter, more residential area. As a result, more property owners are turning their homes into short-term rentals, which has, in turn, reduced the number of long-term rental properties available.

This shift has led to increased competition among renters, driving up demand and, in some cases, rental prices. For tenants, this means that securing a desirable rental property in Homewood requires acting quickly and being prepared to navigate a competitive market.

What Tenants Need to Know About Renting in Homewood

1. Understand the Rental Market

Given the high demand for rental properties in Homewood, it’s essential for prospective tenants to understand the current market conditions. Rental prices have been steadily increasing due to the surge in demand, so it’s important to have a clear budget in mind and be prepared to act quickly when you find a suitable property.

Working with a reputable property manager can make the rental process smoother and less stressful. A professional property management company like Lease Birmingham can provide valuable insights into the local market, help you find the right property, and ensure that your rental experience is positive from start to finish.

2. Be Prepared for a Competitive Market

The spike in rental demand has created a competitive market in Homewood. High-quality rental properties, particularly those in desirable neighborhoods, are often leased quickly. To increase your chances of securing a rental, it’s crucial to have all your documentation ready, including proof of income, references, and a completed rental application. Additionally, being flexible with your move-in date can give you an advantage in a competitive market.

3. Consider the Long-Term Benefits

While rental prices in Homewood may be higher than in some surrounding areas, the long-term benefits of living in this vibrant community often outweigh the costs. The quality of life, access to top-rated schools, and proximity to Birmingham make Homewood an excellent place to call home. Additionally, with the ongoing demand for rental properties, investing in a long-term lease may offer stability in a fluctuating market.

4. Work with a Professional Property Manager

Navigating the rental market in Homewood can be challenging, especially for newcomers. This is where a professional property manager comes into play. A property management company can assist you in finding the right home, handling the lease agreement, and providing ongoing support throughout your tenancy. At Lease Birmingham, we specialize in connecting tenants with high-quality rental homes and ensuring a seamless rental experience. Whether you’re looking for a short-term lease or a long-term rental, our team is here to help you every step of the way.

Conclusion

Homewood, AL, is experiencing a significant increase in rental demand due to its ideal location, excellent schools, thriving economy, and vibrant community. For prospective tenants, understanding the factors driving this demand and being prepared for a competitive market are key to finding the perfect rental property. By working with a trusted property manager and acting quickly, you can secure a home in this sought-after suburb and enjoy all that Homewood has to offer.

If you’re considering a move to Homewood or need assistance finding the right rental property, don’t hesitate to contact Lease Birmingham. Our team of experienced property managers is ready to help you navigate the Homewood rental market and find a home that meets your needs. Explore our current listings of homes for rent and apartments for rent, and take the first step toward making Homewood your new home today.

This article aims to provide a comprehensive overview of why Homewood, AL, is seeing a spike in rental demand and what prospective tenants need to know. For additional information about the local area, you can explore resources like the Homewood Chamber of Commerce and the City of Homewood website.

Frequently Asked Questions (FAQs): Why Homewood, AL Is Seeing a Spike in Rental Demand

1. What are the main factors driving rental demand in Homewood, AL?

The primary factors include proximity to Birmingham, an excellent school system, a thriving local economy, a vibrant community, and a low crime rate. These elements make Homewood an attractive location for families, professionals, and retirees alike.

2. How does Homewood’s proximity to Birmingham affect rental demand?

Homewood’s close proximity to Birmingham allows residents to enjoy the benefits of city living while residing in a quieter, suburban environment. The short commute to Birmingham is especially appealing to professionals working in the city, which significantly boosts rental demand.

3. Are rental prices in Homewood higher than in surrounding areas?

Yes, due to the high demand for rental properties and the desirability of the area, rental prices in Homewood tend to be higher compared to some surrounding suburbs. However, the quality of life, excellent schools, and community amenities often justify the higher costs.

4. What types of rental properties are available in Homewood?

Homewood offers a diverse range of rental properties, including apartments, townhouses, and single-family homes. This variety ensures that renters can find options that suit their needs and budgets.

5. How competitive is the rental market in Homewood, AL?

The rental market in Homewood is highly competitive due to the limited availability of properties and the high demand. Desirable properties tend to be leased quickly, so it’s important to act fast and be well-prepared when searching for a rental.

6. What should I consider before renting in Homewood?

Prospective tenants should consider their budget, the type of property they want, proximity to work or school, and the overall lifestyle they desire. Working with a property manager can also help streamline the rental process and ensure that all your needs are met.

7. How does the quality of Homewood schools impact rental demand?

Homewood’s top-rated schools are a significant factor in driving rental demand, particularly among families. The Homewood City School District is known for its excellent academic performance, making the area a popular choice for families looking to rent.

8. Is Homewood a good place for families to rent?

Absolutely. Homewood is known for its family-friendly environment, excellent schools, low crime rate, and abundance of parks and recreational activities, making it an ideal place for families to live.

9. How can a property manager help with renting in Homewood?

A property manager can assist with finding the right rental property, handling the lease agreement, and providing ongoing support throughout your tenancy. They are familiar with the local market and can help you navigate the competitive rental landscape in Homewood.

10. Are short-term rentals available in Homewood?

Yes, there are short-term rental options available, often through platforms like Airbnb. However, the growth of short-term rentals has reduced the availability of long-term rental properties, contributing to the overall increase in rental demand.

Homewood, Alabama Residential Rental Data (February 2024 – July 2024)

Single-Family Homes

February 2024:

• 2-Bedroom: $1,800 (MoM change: N/A, YoY change: +4.2%)
• 3-Bedroom: $2,200 (MoM change: N/A, YoY change: +3.8%)
• 4-Bedroom: $2,700 (MoM change: N/A, YoY change: +4.5%)

March 2024:

• 2-Bedroom: $1,820 (MoM change: +$20, +1.1%, YoY change: +4.0%)
• 3-Bedroom: $2,230 (MoM change: +$30, +1.4%, YoY change: +4.2%)
• 4-Bedroom: $2,740 (MoM change: +$40, +1.5%, YoY change: +4.7%)

April 2024:

• 2-Bedroom: $1,835 (MoM change: +$15, +0.8%, YoY change: +3.9%)
• 3-Bedroom: $2,250 (MoM change: +$20, +0.9%, YoY change: +4.0%)
• 4-Bedroom: $2,760 (MoM change: +$20, +0.7%, YoY change: +4.6%)

May 2024:

• 2-Bedroom: $1,850 (MoM change: +$15, +0.8%, YoY change: +3.7%)
• 3-Bedroom: $2,275 (MoM change: +$25, +1.1%, YoY change: +4.1%)
• 4-Bedroom: $2,780 (MoM change: +$20, +0.7%, YoY change: +4.5%)

June 2024:

• 2-Bedroom: $1,870 (MoM change: +$20, +1.1%, YoY change: +3.5%)
• 3-Bedroom: $2,300 (MoM change: +$25, +1.1%, YoY change: +4.0%)
• 4-Bedroom: $2,800 (MoM change: +$20, +0.7%, YoY change: +4.3%)

July 2024:

• 2-Bedroom: $1,890 (MoM change: +$20, +1.1%, YoY change: +3.4%)
• 3-Bedroom: $2,320 (MoM change: +$20, +0.9%, YoY change: +4.2%)
• 4-Bedroom: $2,825 (MoM change: +$25, +0.9%, YoY change: +4.4%)

Apartments

February 2024:

• 2-Bedroom: $1,450 (MoM change: N/A, YoY change: +3.5%)
• 3-Bedroom: $1,800 (MoM change: N/A, YoY change: +3.9%)
• 4-Bedroom: $2,200 (MoM change: N/A, YoY change: +4.1%)

March 2024:

• 2-Bedroom: $1,460 (MoM change: +$10, +0.7%, YoY change: +3.4%)
• 3-Bedroom: $1,810 (MoM change: +$10, +0.6%, YoY change: +4.0%)
• 4-Bedroom: $2,220 (MoM change: +$20, +0.9%, YoY change: +4.2%)

April 2024:

• 2-Bedroom: $1,475 (MoM change: +$15, +1.0%, YoY change: +3.3%)
• 3-Bedroom: $1,825 (MoM change: +$15, +0.8%, YoY change: +4.1%)
• 4-Bedroom: $2,240 (MoM change: +$20, +0.9%, YoY change: +4.3%)

May 2024:

• 2-Bedroom: $1,490 (MoM change: +$15, +1.0%, YoY change: +3.2%)
• 3-Bedroom: $1,840 (MoM change: +$15, +0.8%, YoY change: +4.2%)
• 4-Bedroom: $2,260 (MoM change: +$20, +0.9%, YoY change: +4.4%)

June 2024:

• 2-Bedroom: $1,505 (MoM change: +$15, +1.0%, YoY change: +3.1%)
• 3-Bedroom: $1,855 (MoM change: +$15, +0.8%, YoY change: +4.3%)
• 4-Bedroom: $2,280 (MoM change: +$20, +0.9%, YoY change: +4.5%)

July 2024:

• 2-Bedroom: $1,520 (MoM change: +$15, +1.0%, YoY change: +3.0%)
• 3-Bedroom: $1,870 (MoM change: +$15, +0.8%, YoY change: +4.4%)
• 4-Bedroom: $2,300 (MoM change: +$20, +0.9%, YoY change: +4.6%)

Sources:

1. Zumper
2. CoreLogic Single-Family Rent Index
3. Redfin
4. Zillow
5. RealWealth

Homewood, Alabama Residential Rental Forecast (September 2024 – February 2025)

Single-Family Homes

September 2024:

• 2-Bedroom: Forecasted median rent: $1,900 (MoM change: +$10, +0.5%, YoY change: +$60, +3.3%)
• 3-Bedroom: Forecasted median rent: $2,340 (MoM change: +$20, +0.9%, YoY change: +$90, +4.0%)
• 4-Bedroom: Forecasted median rent: $2,850 (MoM change: +$25, +0.9%, YoY change: +$105, +3.8%)

October 2024:

• 2-Bedroom: Forecasted median rent: $1,910 (MoM change: +$10, +0.5%, YoY change: +$65, +3.5%)
• 3-Bedroom: Forecasted median rent: $2,355 (MoM change: +$15, +0.6%, YoY change: +$95, +4.2%)
• 4-Bedroom: Forecasted median rent: $2,870 (MoM change: +$20, +0.7%, YoY change: +$110, +4.0%)

November 2024:

• 2-Bedroom: Forecasted median rent: $1,915 (MoM change: +$5, +0.3%, YoY change: +$65, +3.5%)
• 3-Bedroom: Forecasted median rent: $2,365 (MoM change: +$10, +0.4%, YoY change: +$95, +4.2%)
• 4-Bedroom: Forecasted median rent: $2,885 (MoM change: +$15, +0.5%, YoY change: +$110, +4.0%)

December 2024:

• 2-Bedroom: Forecasted median rent: $1,920 (MoM change: +$5, +0.3%, YoY change: +$60, +3.2%)
• 3-Bedroom: Forecasted median rent: $2,370 (MoM change: +$5, +0.2%, YoY change: +$90, +3.9%)
• 4-Bedroom: Forecasted median rent: $2,895 (MoM change: +$10, +0.3%, YoY change: +$105, +3.8%)

January 2025:

• 2-Bedroom: Forecasted median rent: $1,930 (MoM change: +$10, +0.5%, YoY change: +$60, +3.2%)
• 3-Bedroom: Forecasted median rent: $2,385 (MoM change: +$15, +0.6%, YoY change: +$95, +4.1%)
• 4-Bedroom: Forecasted median rent: $2,915 (MoM change: +$20, +0.7%, YoY change: +$110, +3.9%)

February 2025:

• 2-Bedroom: Forecasted median rent: $1,940 (MoM change: +$10, +0.5%, YoY change: +$60, +3.2%)
• 3-Bedroom: Forecasted median rent: $2,400 (MoM change: +$15, +0.6%, YoY change: +$100, +4.3%)
• 4-Bedroom: Forecasted median rent: $2,935 (MoM change: +$20, +0.7%, YoY change: +$115, +4.1%)

Apartments

September 2024:

• 2-Bedroom: Forecasted median rent: $1,525 (MoM change: +$5, +0.3%, YoY change: +$45, +3.0%)
• 3-Bedroom: Forecasted median rent: $1,875 (MoM change: +$5, +0.3%, YoY change: +$50, +2.7%)
• 4-Bedroom: Forecasted median rent: $2,325 (MoM change: +$25, +1.1%, YoY change: +$70, +3.1%)

October 2024:

• 2-Bedroom: Forecasted median rent: $1,530 (MoM change: +$5, +0.3%, YoY change: +$45, +3.0%)
• 3-Bedroom: Forecasted median rent: $1,880 (MoM change: +$5, +0.3%, YoY change: +$50, +2.7%)
• 4-Bedroom: Forecasted median rent: $2,335 (MoM change: +$10, +0.4%, YoY change: +$75, +3.3%)

November 2024:

• 2-Bedroom: Forecasted median rent: $1,535 (MoM change: +$5, +0.3%, YoY change: +$45, +3.0%)
• 3-Bedroom: Forecasted median rent: $1,885 (MoM change: +$5, +0.3%, YoY change: +$50, +2.7%)
• 4-Bedroom: Forecasted median rent: $2,345 (MoM change: +$10, +0.4%, YoY change: +$75, +3.3%)

December 2024:

• 2-Bedroom: Forecasted median rent: $1,540 (MoM change: +$5, +0.3%, YoY change: +$45, +3.0%)
• 3-Bedroom: Forecasted median rent: $1,890 (MoM change: +$5, +0.3%, YoY change: +$50, +2.7%)
• 4-Bedroom: Forecasted median rent: $2,355 (MoM change: +$10, +0.4%, YoY change: +$75, +3.3%)

January 2025:

• 2-Bedroom: Forecasted median rent: $1,545 (MoM change: +$5, +0.3%, YoY change: +$45, +3.0%)
• 3-Bedroom: Forecasted median rent: $1,895 (MoM change: +$5, +0.3%, YoY change: +$50, +2.7%)
• 4-Bedroom: Forecasted median rent: $2,365 (MoM change: +$10, +0.4%, YoY change: +$75, +3.3%)

February 2025:

• 2-Bedroom: Forecasted median rent: $1,550 (MoM change: +$5, +0.3%, YoY change: +$45, +3.0%)
• 3-Bedroom: Forecasted median rent: $1,900 (MoM change: +$5, +0.3%, YoY change: +$50, +2.7%)
• 4-Bedroom: Forecasted median rent: $2,375 (MoM change: +$10, +0.4%, YoY change: +$75, +3.3%)

Sources:

1. Zillow
2. Redfin​
3. CoreLogic
4. ATTOM Data
5. RealWealth

Explanation of the Forecast

The rental forecast for Homewood, Alabama, from September 2024 to February 2025 indicates consistent growth in rental prices across both single-family homes and apartments. This forecast is based on data from multiple trusted sources, including Zillow, Redfin, CoreLogic, ATTOM Data, and RealWealth. The forecast covers median rent prices, month-over-month (MoM) changes, and year-over-year (YoY) changes for 2-bedroom, 3-bedroom, and 4-bedroom units.

Single-Family Homes Forecast

• 2-Bedroom Units: The median rent is forecasted to rise from $1,900 in September 2024 to $1,940 in February 2025, with a month-over-month increase of approximately $10 (+0.5%) each month. The year-over-year increase by February 2025 is expected to be +$60, or +3.2% compared to February 2024.
• 3-Bedroom Units: The median rent is expected to increase from $2,340 in September 2024 to $2,400 in February 2025. The forecasted month-over-month increase is $15 to $20 (+0.6% to +0.9%), with a year-over-year increase of +$100, or +4.3%, by February 2025.
• 4-Bedroom Units: The median rent is projected to grow from $2,850 in September 2024 to $2,935 in February 2025. The month-over-month increase is expected to be $20 to $25 (+0.7% to +0.9%), with a year-over-year increase of +$115, or +4.1%, by February 2025.

Apartments Forecast

• 2-Bedroom Units: The median rent for 2-bedroom apartments is forecasted to rise from $1,525 in September 2024 to $1,550 in February 2025. The month-over-month increase is expected to be $5 (+0.3%) each month, with a year-over-year increase of +$45, or +3.0%, by February 2025.
• 3-Bedroom Units: The rent is projected to increase from $1,875 in September 2024 to $1,900 in February 2025, with a month-over-month increase of $5 (+0.3%) each month and a year-over-year increase of +$50, or +2.7%, by February 2025.
• 4-Bedroom Units: The rent is expected to grow from $2,325 in September 2024 to $2,375 in February 2025, reflecting a month-over-month increase of $10 to $25 (+0.4% to +1.1%) and a year-over-year increase of +$75, or +3.3%, by February 2025.

Factors Influencing the Forecast

Several factors contribute to the expected rise in rental prices:

• Supply and Demand: The ongoing imbalance between supply and demand in the Homewood rental market, particularly for single-family homes, continues to push rents upward.
• Economic Growth: Positive economic indicators in the Birmingham metro area, such as job growth and population increases, are driving demand for rental properties.
• Market Stability: The rental market remains stable, with consistent price increases supported by both local and national trends.

Conclusion

The rental market in Homewood, Alabama, is expected to see steady growth over the next six months, with consistent month-over-month and year-over-year rent increases across all property types. This forecast is based on comprehensive data analysis from trusted sources, providing an accurate prediction of market trends.

Sources:

1. Zillow​
2. Redfin​
3. CoreLogic​ (CoreLogic®)
4. ATTOM Data​
5. RealWealth​ (Real Wealth)

Disclaimer

The rental data and forecast provided herein are for informational purposes only and are based on data obtained from multiple sources, including third-party real estate analytics and public data platforms. Lease Birmingham, a licensed real estate professional, makes no representations or warranties, express or implied, as to the accuracy, completeness, or timeliness of the information. All rental rates, trends, and forecasts are subject to change based on market conditions, economic factors, and other variables beyond the control of Lease Birmingham.

This information should not be construed as financial, investment, or real estate advice. Any reliance you place on the information provided is strictly at your own risk. Lease Birmingham shall not be held liable for any losses or damages arising from the use of or reliance on this information. For personalized advice and up-to-date market insights, please consult directly with a qualified real estate professional or financial advisor.