Birmingham Real Estate Market 2026: Score 52, Unemployment at 2.5%

Birmingham, AL scores 52 out of 100 on the PropertyIQ index as of February 28, 2026.

The unemployment rate is 2.5%. The median listing price is $289,000. The market is 3.4% overvalued -- essentially at fair value.

A score of 52 sits precisely at the midpoint between a strong seller's market and a clear buyer's market. PropertyIQ scores Birmingham a 52 out of 100 as of February 28, 2026. What the data shows is a market that is neither surging nor distressed.

What a Score of 52 Reflects

The PropertyIQ score measures supply-demand balance. A score of 52 means conditions are slightly above equilibrium -- neither strongly favoring buyers nor sellers.

In Birmingham as of February 2026:

• 3,960 homes are for sale (up +10.05% YOY)
• 2,050 are pending (pending ratio: 0.5176)
• New listings are rising: +7.04% year over year
• Days on market: 70
• Price cuts: 13.98% of listings
• Sellers receive 98.55% of asking price

Inventory is building. Sellers are accepting small discounts. Homes sit for over two months on average. This is not a crisis. It is a market with more supply than demand can absorb at current velocity.

The Economic Strength Underneath

The unemployment rate in Birmingham is 2.5% as of November 2025. That is one of the lowest readings in the PropertyIQ dataset -- lower than San Diego (4.4%), Los Angeles (4.8%), and comparable to Austin (3.2%) with none of the supply overhang.

The median income is $69,627. The income required to purchase a median-priced home is $76,815 -- a gap of $7,188 annually. That is a real but narrow spread for a metro of 1.18 million with an accessible $289,000 median listing price.

The overvaluation reading of 3.4% is among the lowest in the dataset. Birmingham is priced close to what its income base can support. The affordability foundation here is stronger than the 52 score suggests.

Current Market Conditions

The median listing price in Birmingham is $289,000 as of February 1, 2026. The Zillow median home value is approximately $254,913 as of January 31, 2026.

Home values are up 1.4% year over year. Month over month, values declined marginally, -0.16%. The five-year appreciation is 11.41%.

Zillow forecasts 0.8% near-term price appreciation as of December 2025 -- a modest reading that reflects the current supply overhang rather than any structural economic weakness.

Supply and Demand Dynamics

Birmingham's 52 score reflects a market where supply and demand are reasonably matched but supply has a slight edge. Inventory is up 10.05% year over year. New listings are up 7.04%. Both directions point toward a market getting slightly more favorable for buyers over time.

The pending ratio of 0.5176 indicates that roughly half of active listings are under contract at any given time. That is a normal absorption rate for a mid-tier Sun Belt market.

New construction is active: 181 new construction sales in November 2025, a reading that contributes to the inventory level.

Birmingham vs Southeast Peers

The Southeast has produced sharply divergent PropertyIQ outcomes. Huntsville scores 40, reflecting more severe supply conditions. Greenville SC scores 31.

Birmingham at 52 sits near the midpoint of the Southeast spectrum -- not at the distressed end where Sun Belt correction markets like Austin (18) and Miami (13) reside, and not at the high-performing end of Midwest markets.

The Rental Market

The Zillow rent index for Birmingham is $1,404 per month as of December 2025. The income required to rent comfortably is approximately $56,161 annually. That is well within reach for the $69,627 median income.

The homeownership rate is 70.59%, above the national average, reflecting the affordable price point relative to local wages. Population is 1,181,432 as of 2023 Census.

Reading the Score

A 52 in Birmingham is not a signal of distress. The labor market is tight (2.5% unemployment), the price point is accessible, and overvaluation is minimal. The score reflects that supply is building faster than demand is absorbing it -- a condition that typically benefits buyers seeking negotiating room.

PropertyIQ score as of February 28, 2026. Listing and inventory data as of February 1, 2026. Zillow home value data as of January 31, 2026. Sale-to-list data as of November 30, 2025. Forecast data as of December 2025. Census data as of 2023. Economic data as of November 2025. All data for informational purposes only.