More than half of Birmingham residents rent their homes, and according to a new study, that’s not necessarily a bad thing.
Rentership trends shifting in Birmingham
A report from real estate hub Point2Homes has ranked Birmingham among the nation’s best metropolitan areas for renters, citing its affordable cost of living, manageable commute times, and mild weather.
While the state of Alabama overall has a relatively low share of renters—just 29%—Birmingham’s renter rate remains significantly higher at 53%.
That figure, however, marks a notable decline from its 2019 peak of nearly 60%, the highest level in the past decade.
Researchers say the decrease could signal rising confidence in the housing market or an indication that higher rental costs are pushing more residents toward homeownership.
Between 2020 and 2023, homeownership in the metro area dipped slightly from 57% to 55%, likely due to the pandemic’s impact on the economy and housing availability.
Competitive and affordable rental market
Despite the fluctuations, Birmingham continues to perform well for renters compared to other metros in the South.
A RentCafe study ranked the Magic City as the twelfth most competitive rental market in the region and the second most competitive in Alabama.
With an average rent of $1,354 as of September 2025 and an average single-family renter income of about $63,400, the city offers a balance of affordability and opportunity that remains appealing to tenants.
A national standout for affordability
Point2Homes’ analysis placed Birmingham fifth nationwide for lowest cost of living, well below major markets like San Jose or San Francisco.
Combined with relatively short commutes and a lower overall cost of daily life, the city continues to attract renters who want urban amenities without the high price tag found in other large metros.
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