According to the latest update of Beekin’s Recent Movers Rental Price Indices, single-family home rental prices in Alabama have seen a substantial drop. The data reveals a decline in rent prices for both the 12 months leading up to the end of January 2023 and on a month-to-month basis.
According to Beekin’s data, Alabama has experienced a decline in SFR rent prices of -13.8% from January 2022 to January 2023. This drop is in stark contrast to multifamily rents in Alabama, which rose 5.1% during the same period. Additionally, SFR rent prices have seen a month-on-month decline of -0.5% from December 2022 to January 2023.
Historically, from Q1 2015 to Q1 2017, there was a steady decline in rent prices, with a change of -4.1%. Following this, there was a period of consistent rent price growth until Q3 2019, with rents increasing 3.6%.
Following a brief dip in single-family rental prices in Q4 2019 and Q1 2020, rents bounced back and continued to rise until Q1 2022, with a growth rate of 2.8%. However, this upward trend took a drastic turn in Q2 2022, as Alabama saw a substantial decline of 11.2% from its peak rents in Q1 2022 to its lowest rents in Q4 2022.
This significant drop in single-family rent prices is not unique to Alabama, and other states with similar economic conditions have also experienced a drastic decrease. For instance, from January 2022 to January 2023, Mississippi had a 12-month single-family home rent price change of -5.9%, and Georgia had a 12-month rent decrease of -7.9%. However, Louisiana experienced a 12-month SFR rent increase of +0.6% for the same period.
The recent decline in single-family home rent prices in Alabama should serve as a cautionary tale for rental housing developers, investors, and operators across the US. Beekin’s revenue management software, rental AVM, and rent price data provide powerful tools for analyzing and optimizing rental property investments. By leveraging these resources, rental housing professionals can stay ahead of market trends and make data-driven decisions to drive profitability and success. So if you want to maximize the value of your rental housing portfolio, be sure to contact our team to book a demo of our solutions.