BIRMINGHAM MARKET REVIEWINVESTMENT SALES TEAM
DASHBOARD
DEMOGRAPHICS
ECONOMICINDICATORS
OUTLOOK - 2017
HOUSINGMARKET
NATIONALSNAPSHOT
1981, 15.32%
Jun-17, 2.19%0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Source: Federal Reserve of St. Louis
INVESTMENT INDICATORS
HISTORICAL 10-YEAR TREASURY RATE | MONTHLY
M A RK E T RE VIE W BIRMI NG HAM
DASHBOARD
DEMOGRAPHICS
ECONOMICINDICATORS
OUTLOOK - 2017
HOUSINGMARKET
NATIONALSNAPSHOT
INVESTMENT INDICATORS
12-MONTH LIBOR U.S. DOLLAR
Source: Federal Reserve of St. Louis
M A RK E T RE VIE W BIRMI NG HAM
Jul - 1.75%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
DASHBOARD
DEMOGRAPHICS
ECONOMICINDICATORS
OUTLOOK - 2017
HOUSINGMARKET
NATIONALSNAPSHOT
Average U.S. Rent $1,339Up 3.6% from 2Q16
Occupancy Rate 95.0%
Down 30 bps from 2Q16
$500
$750
$1,000
$1,250
$1,500
90.0%
92.0%
94.0%
96.0%
2011 2012 2013 2014 2015 2016 2Q17Avg. Rent Occupancy
U.S. MULTIFAMILY MARKET
BY THE NUMBERS
Source: Axiometrics
M A RK E T RE VIE W BIRMINGHAM
DASHBOARD
DEMOGRAPHICS
ECONOMICINDICATORS
OUTLOOK - 2017
HOUSINGMARKET
NATIONALSNAPSHOT
Units delivered through 2Q17
174.6k 235.2k
Units absorbed through 2Q17
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
New Supply Demand
U.S. MULTIFAMILY MARKET
BY THE NUMBERS
Source: Axiometrics*Projected
M A RK E T RE VIE W BIRMINGHAM
DASHBOARD
NATIONALSNAPSHOT
ECONOMICINDICATORS
OUTLOOK - 2017
HOUSINGMARKET
DEMOGRAPHICS
Birmingham MSA is the Most populated metro in Alabama and the 49th largest metropolitan area in the country.
1.16mEstimated 2017 population
MARKET SNAPSHOT
2Q 2017
Source: U.S. Census Bureau; Bureau of Labor and Statistics; Sitewise Tetrad; Moody’s Analytics* Seasonally Adjusted
M A RK E T RE VIE W BIRMINGHAM
$50.8kEstimated median income
38.7Median Age
542.3kLabor force (Jun ’17)*
$69.5bGross metro product
3.9%Unemployment rate (May ‘17)*
DASHBOARD
NATIONALSNAPSHOT
ECONOMICINDICATORS
OUTLOOK - 2017
HOUSINGMARKET
DEMOGRAPHICS
Population2000
Census2010
Census2017
Estimate2022
ProjectedGROWTH 2017-2022
Birmingham MSA 1.05 M 1.13 M 1.15 M 1.16 M 0.9%
Alabama 4.45 M 4.78 M 4.91 M 5.06 M 2.8%
United States 281.4 M 312.4 M 329.6 M 342.6 M 4.0%
POPULATION GROWTH
Source: U.S. Census, Moody’s Analytics
M A RK E T RE VIE W BIRMINGHAM
DASHBOARD
NATIONALSNAPSHOT
ECONOMICINDICATORS
OUTLOOK - 2017
HOUSINGMARKET
DEMOGRAPHICS
Rank Metro Area2000
Census2010
Census2017
Estimate2022
Projected
1 Atlanta 4.29 M 5.3 M 5.9 M 6.55 M
2 Charlotte 1.73 M 2.22 M 2.52 M 2.85 M
3 Nashville 1.39 M 1.68 M 1.9 M 2.05 M
4 Memphis 1.22 M 1.33 M 1.35 M 1.38 M
5 Louisville 1.12 M 1.24 M 1.29 M 1.32 M
6 Birmingham 1.05 M 1.13 M 1.15 M 1.16 M
7 Columbia .65 M .77 M .83 M .88 M
8 Greensboro .65 M .73 M .76 M .82 M
9 Little Rock .61 M .7 M .74 M .77 M
10 Mobile .4 M .41 M .42 M .42 M
REGIONAL POPULATION COMPARISON
Source: U.S. Census, Moody’s Analytics
M A RK E T RE VIE W BIRMINGHAM
DASHBOARD
NATIONALSNAPSHOT
ECONOMICINDICATORS
OUTLOOK - 2017
HOUSINGMARKET
DEMOGRAPHICS
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
Tota
l Pop
ulat
ion
in M
illion
s
Population Forecast
Population Growth Forecast1990 - 2000: 9.9% growth2000 - 2010: 7.2% growth2010 - 2020: 2.5% growth2020 - 2030: 4.8% growth
POPULATION GROWTH | 1990 - 2030
Source: U.S. Census, Moody’s Analytics
M A RK E T RE VIE W BIRMINGHAM
Birmingham’s population is projected to grow by 6.0%, adding nearly 69,000residents between 2015 – 2030.
DASHBOARD
NATIONALSNAPSHOT
ECONOMICINDICATORS
OUTLOOK - 2017
HOUSINGMARKET
DEMOGRAPHICS
0.93
0.94 0.96 1.
01 1.05 1.
09 1.13 1.14 1.16 1.18 1.21
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
Tota
l Pop
ulat
ion
in M
illion
s
Population Forecast
Between 2005 and 2015 the Birmingham MSA has grown by 58,126 people,equating to an increase of 5.4%.
POPULATION GROWTH | 1980 - 2030
FIVE YEAR INTERVALS
Source: U.S. Census, Moody’s Analytics
M A RK E T RE VIE W BIRMINGHAM
DASHBOARD
NATIONALSNAPSHOT
ECONOMICINDICATORS
OUTLOOK - 2017
HOUSINGMARKET
DEMOGRAPHICS
AGE TRENDS
HISTORICAL / PROJECTED AGE TRENDS
Source: Moody’s Analytics
M A RK E T RE VIE W BIRMINGHAM
26.5%
20.2%27.9%
25.4%
Age Trends 2010
0-19
20-34
35-54
55+
25.5%
19.9%26.5%
28.1%
Age Trends 2015
0-19
20-34
35-54
55+
24.4%
19.9%25.3%
30.4%
Age Trends 2020
0-19
20-34
35-54
55+
23.7%
19.8%24.9%
31.6%
Age Trends 2025
0-19
20-34
35-54
55+
DASHBOARD
NATIONALSNAPSHOT
ECONOMICINDICATORS
OUTLOOK - 2017
HOUSINGMARKET
DEMOGRAPHICS
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
Pop
ulat
ion
/ Tot
al E
mpl
oym
ent i
n M
illion
s
Total Population Total Employment
EMPLOYMENT AND POPULATION
Source: Moody’s Analytics
M A RK E T RE VIE W BIRMINGHAM
DASHBOARD
NATIONALSNAPSHOT
ECONOMICINDICATORS
OUTLOOK - 2017
HOUSINGMARKET
DEMOGRAPHICS
0.4%
0.6%
0.9%
1.0%
1.4%
1.5%
1.8%
2.5%
3.2%
3.4%
Mobile, AL
Columbia, SC
Birmingham, AL
Little Rock, AR
Memphis, TN
Greensboro, NC
Louisville, KY
Charlotte, NC
Atlanta, GA
Nashville, TN
EMPLOYMENT GROWTH RATE
Source: Moody’s Analytics
M A RK E T RE VIE W BIRMINGHAM
Percent Change in Nonfarm Payroll Employment: June 2017* (Seasonally Adjusted)
* - Projected
DASHBOARD
NATIONALSNAPSHOT
ECONOMICINDICATORS
OUTLOOK - 2017
HOUSINGMARKET
DEMOGRAPHICS
700
700
(1,1
00)
1,40
0
(300
) (800
)
3,60
0
(100
) 0
(400
)
300
(400
)
1,60
0
(1,1
00)
300
800
2,20
0
(2,000)
(1,000)
0
1,000
2,000
3,000
4,000
MONTHLY JOB GROWTH
Source: Bureau of Labor Statistics
M A RK E T RE VIE W BIRMINGHAM
One-Month Net Change | Seasonally Adjusted
§ From January to May of 2017, employers have added approximately 3,800 new jobs.
DASHBOARD
NATIONALSNAPSHOT
ECONOMICINDICATORS
OUTLOOK - 2017
HOUSINGMARKET
DEMOGRAPHICS
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Une
mpl
oym
ent R
ate
Birmingham-Hoover, AL Alabama USA
Monthly Unemployment RateUSA: 4.3%
Alabama: 4.9%Birmingham MSA: 4.9%
SEASONALLY ADJUSTED UNEMPLOYMENT: METRO, STATE, AND NATIONAL
Source: U.S. Census; Bureau of Labor Statistics; Moody’s Analytics
M A RK E T RE VIE W BIRMINGHAM
May 2017 | Seasonally Adjusted
DASHBOARD
NATIONALSNAPSHOT
ECONOMICINDICATORS
OUTLOOK - 2017
HOUSINGMARKET
DEMOGRAPHICS
§ May 2016 – May 2017 Job Growth: 2,200 Jobs (Seasonally Adjusted)§ The May 2017 not seasonally adjusted monthly unemployment rate is 3.9%; down
120 bps year over year
0%
2%
4%
6%
8%
10%
12%
(30)
(25)
(20)
(15)
(10)
(5)
0
5
10
15
Jobs
Add
ed /
Lost
in T
hous
ands
Jobs Added / Lost Unemployment Rate
JOB GROWTH AND UNEMPLOYMENT
Source: Bureau of Labor Statistics; Moody’s Analytics
M A RK E T RE VIE W BIRMINGHAM
* - Projected
DASHBOARD
NATIONALSNAPSHOT
ECONOMICINDICATORS
OUTLOOK - 2017
HOUSINGMARKET
DEMOGRAPHICS
2,282
7,664
24,125
25,484
37,772
42,483
51,207
66,794
73,810
83,557
109,839
Natural Resources & Mining
Information
Other Services
Construction
Manufacturing
Financial Activities
Leisure & Hospitality
Professional & Business Services
Education & Health Services
Government
Trade, Transportation & Utilities
SECTOR EMPLOYMENT
Source: Moody’s Analytics
M A RK E T RE VIE W BIRMINGHAM
June 2017* | Seasonally Adjusted
* - Projected
DASHBOARD
NATIONALSNAPSHOT
ECONOMICINDICATORS
OUTLOOK - 2017
HOUSINGMARKET
DEMOGRAPHICS
Rank SectorJune 2017Employees
% of Total Employment
1 Trade, Transportation & Utilities 109,839 20.9%
2 Government 83,557 15.9%
3 Education & Health Services 73,810 14.1%
4 Professional & Business Services 66,794 12.7%
5 Leisure & Hospitality 51,207 9.8%
6 Financial Activities 42,483 8.1%
7 Manufacturing 37,772 7.2%
8 Construction 25,484 4.9%
9 Other Services 24,125 4.6%
10 Information 7,664 1.5%
11 Natural Resources & Mining 2,282 0.5%
Grand Total 525,017 100.0%
EMPLOYMENT SECTOR BREAKDOWN
Source: Moody’s Analytics
M A RK E T RE VIE W BIRMINGHAM
June 2017* | Seasonally Adjusted
* - Projected
DASHBOARD
NATIONALSNAPSHOT
OUTLOOK - 2017
HOUSINGMARKET
ECONOMICINDICATORS
DEMOGRAPHICS
ECONOMIC DRIVERS
Source: Moody’s Analytics
M A RK E T RE VIE W BIRMINGHAM
§ University of Alabama Birmingham (UAB) is the largest employer in the state with approximately 23,000 employees.
§ UAB supports over 61,000 jobs indirectly and generates an economic impact of $5 billion annually.
§ By 2020, UAB projects its economic impact to grow to $6.6 billion, and generate more than 72,500 jobs.
UNIVERSITY OF ALABAMA BIRMINGHAM
§ Birmingham companies employ roughly 38,000 residents in the manufacturing industry.
§ Birmingham has nearly 5x the employment concentration in the primary medals industries than the national average.
§ According to a recent study, Honda Motor Manufacturing employs roughly 4,800 in metro Birmingham, and indirectly created more than 43,000 jobs across the state, creating an economic impact of $6.8 billion; nearly 3.5% of the state’s total GDP.
MANUFACTURING
§ UAB Hospital is the top-ranked hospital in the state by U.S. News & World Report, and ranks in the top 50 hospitals in the country across nine medical specialties.
§ The health care sector employs more than 65,000 people and includes four of the top ten employers within the MSA.
§ The presence of the UAB Health System, along with nearly 20 other hospitals and medical centers, makes Birmingham a regional health care hub.
HEALTH CARE
§ With emerging sectors such as information technology and data security, Network World recently dubbed Birmingham the “Silicon Valley of the Southeast”.
§ Birmingham’s Innovation Depot is the largest technology incubator in the Southeast, and one of the top tech incubators in the U.S., according to the National Business Incubation Association.
TECHNOLOGY HUB
DASHBOARD
NATIONALSNAPSHOT
OUTLOOK - 2017
HOUSINGMARKET
ECONOMICINDICATORS
DEMOGRAPHICS
ü Greater than $1.25 Economic Impact
§ According to a recent survey, Birmingham was ranked the number one city for millennial entrepreneurs.
§ Birmingham has promoted several economic initiatives centered around the emerging technology sector, suchas Tech Birmingham, Sloss Tech, UAB Innovation Lab, and Innovation Depot – the largest technology incubatorin the Southeast – to name a few.
§ There are more than 700 technology-based companies doing business within the Birmingham MSA. Thesecompanies encumber sectors such as Information Technology (458), R&D (94), Analytical Services (81),Advanced Manufacturing (39), Medical Devices (39), and Life Sciences (33).
ü 650+ attendees from 15 states and 7 different countries
ü Within the last year, 400+ girls ages 8-17 graduated 100 Girls of Code workshop
ü Super Code Sunday: attracts as many 75 kids ages 7-17 monthly
ü 800+ Local Employees
ü Grown from 1 student CEO/Founderin 2014, to 19 in 2016 (student CEO’s are
supported by teams of peers)
ü 380+ Local Employeesü 7 FDA-approved drugs
on market
INNOVATION & TECHNOLOGY
Source: fastcompany.com
M A RK E T RE VIE W BIRMINGHAM
DASHBOARD
NATIONALSNAPSHOT
OUTLOOK - 2017
HOUSINGMARKET
ECONOMICINDICATORS
DEMOGRAPHICS
Rank EmployerNo. of
Employees1 University of Alabama at Birmingham 23,0002 Regions Financial Corp. 7,1343 Honda Manufacturing of Alabama 4,8004 St. Vincent’s Health System 4,7865 Baptist Health System, Inc. 4,6336 Children’s of Alabama 4,5437 AT&T 4,5178 Alabama Power Co. 3,9829 Blue Cross-Blue Shield of Alabama 3,57010 Mercedes-Benz U.S. International, Inc. 3,50011 U.S. Postal Service 2,80012 BBVA Compass 2,76513 Buffalo Rock Co. 2,20014 Southern Co. Services 2,11615 U.S. Steel 1,90016 Trinity Medical Center 1,89317 Social Security Administration 1,80018 Brookwood Medical Center 1,63619 American Cast Iron Pipe Co. 1,60020 Birmingham VA Medical Center 1,52521 Wells Fargo 1,46622 Protective Life Corp. 1,46423 McDonalds 1,30024 State Farm Insurance 1,11225 Golden Living (multiple locations) 1,100
Source: Birmingham Business Alliance, 2016
LARGEST EMPLOYERS
M A RK E T RE VIE W BIRMINGHAM
DASHBOARD
NATIONALSNAPSHOT
OUTLOOK - 2017
HOUSINGMARKET
ECONOMICINDICATORS
DEMOGRAPHICS
Fortune 1000 Companies
(No. 619)
HealthSouth is one of the nation’s largest providers of
post-acute healthcare services
500 $3.71 Billion $247.6 Million
(No. 635)
Vulcan Materials Company is the nation’s largest producer of construction aggregates
250 $3.59 Billion $419.5 Million
§ Birmingham is home to the only Fortune 500 company headquartered in Alabama: Regions FinancialCorporation (No. 436).
§ Birmingham also hosts two companies whom made the Fortune 1000 list: HealthSouth Corporation (No. 619)and Vulcan Materials Company (No. 635)
§ Other major regional / corporate headquarters located in Birmingham include: AT&T, Wells Fargo, BlueCrossBlueShield of Alabama, BBVA Compass, State Farm Insurance.
Company Industry No. of Local Employees
Annual Revenues(2016)
Annual Profits(2016)
(No. 436)
Regions Financial is one of the largest full service
providers of consumer and commercial banking,
mortgage, wealth management, insurance products, and services.
7,100 $5.96 Billion $1.16 Billion
FORTUNE 500 COMPANIES
Source: Fortune Magazine; Geolounge; Tetrad
M A RK E T RE VIE W BIRMINGHAM
DASHBOARD
NATIONALSNAPSHOT
OUTLOOK - 2017
HOUSINGMARKET
ECONOMICINDICATORS
DEMOGRAPHICS
Company Industry Jobs CreatedCapital
Investment Year
Automotive Supplier 535 $27 Million 2017 - 2019
Health Care 400 $7.2 Million 2017
Automotive Supplier 350 $534 Million 2019
Auto Assembly Plant 300 $153 Million 2017
Automotive Supplier 300 $100 Million 2017
Automotive Supplier 225 $46.3 Million 2019
Pharmaceutical Manufacturing 200 $29 Million 2016 - 2020
BUSINESS EXPANSION AND RELOCATION
Source: Birmingham Business Alliance; Birmingham Business Journal
M A RK E T RE VIE W BIRMINGHAM
The Birmingham MSA has added more than 2,200 jobs over the 12-month period ending in May2017.
Birmingham boasts three major employment sectors which include Banking and Insurance, HealthCare Services, and Logistics and Transportation. Below we’ve highlighted a few of the majorexpansions and relocations within these core sectors.
DASHBOARD
NATIONALSNAPSHOT
HOUSINGMARKET
DEMOGRAPHICS
OUTLOOK -2017
ECONOMICINDICATORS
EMPLOYMENT OUTLOOK 2017
Source: Moody’s Analytics
M A RK E T RE VIE W BIRMINGHAM
§ An estimated 4,450 jobs are projected to be created in Greater Birmingham during 2017
+ 980 Jobs
Financial Activities
Government
+ 830 Jobs
+ 800 Jobs
+ 330 Jobs
+ 130 Jobs
+ 3,640 Jobs Education &Health Care
Leisure & Hospitality
Professional & Business Services
Other Services
DASHBOARD
NATIONALSNAPSHOT
HOUSINGMARKET
DEMOGRAPHICS
OUTLOOK -2017
ECONOMICINDICATORS
ECONOMIC DEVELOPMENT AND CONSTRUCTION
M A RK E T RE VIE W BIRMINGHAM
DASHBOARD
NATIONALSNAPSHOT
HOUSINGMARKET
DEMOGRAPHICS
OUTLOOK -2017
ECONOMICINDICATORS
JEFFERSON COUNTY
M A RK E T RE VIE W BIRMINGHAM
PROJECT SUNRISEConsidered the biggest economic development victory in years,Project Sunrise is anticipated to bring roughly 750 manufacturing jobsto the area with an average annual salary around $58,000. Localexperts expect the project to have a “multiplier effect” and can spuradditional job creation through suppliers wanting to locate around themanufacturing facility in years to follow. In October 2016, the projectin Jefferson County was sold for redevelopment by a holdingcompany out of Highland Park, IL, after the county agreed to providethe manufacturing company with nearly $1.5 million in incentives. Theproject is still in planning stages, but construction and development isexpected to involve a capital investment of approximately $120million.
DASHBOARD
NATIONALSNAPSHOT
HOUSINGMARKET
DEMOGRAPHICS
OUTLOOK -2017
ECONOMICINDICATORS
CRESCENT CORRIDOR
NORFOLK SOUTHERN RAILWAYSThe Birmingham Regional Intermodal Facility, completed in 2012, willmake Birmingham a key city along Norfolk Southern's CrescentCorridor Route. The $2.5 billion investment by Norfolk Southern isexpected to create over 8,600 jobs by 2020 and 13,000 jobs by 2030.The 2,500 mile route will provide one of the fastest, most directroutes from the Southeast to the Northeast, utilizing the 316-acreBirmingham facility as a project anchor. Upon completion in 2020, theproject is expected to create an economic impactof $4.08 billion.
M A RK E T RE VIE W BIRMINGHAM
DASHBOARD
NATIONALSNAPSHOT
HOUSINGMARKET
DEMOGRAPHICS
OUTLOOK -2017
ECONOMICINDICATORS
M A RK E T RE VIE W BIRMINGHAM
SOUTHEAST EXISTING & FUTURE TRANSIT OBJECTIVEConnecting the economic centers of Alabama and other regional resources with passenger rail1. Connecting Alabama
§ Birmingham – Montgomery – Mobile
Future Goals2. Connecting the Gulf Coast§ New Orleans – Mobile – Jacksonville3. Connecting the Southeast§ Atlanta – Birmingham – New Orleans
500 JOBS CREATED BY LINKING BIRMINGHAM TO MONTGOMERY
POTENTIAL 500,000 ANNUAL RIDERSHIP
60K ANNUAL SALARY
POTENTIAL TO GENERATE $10 MILLION IN ANNUAL PASSENGER REVENUE
3
CAPITAL INVESTMENT WILL BREAK EVEN AFTER FIVE YEARS
ALTERNATE NODE FOR WORKFORCE AND TOURISTS TO CASINOS, CONVENTIONS, AND OTHER ATTRACTIONS
DASHBOARD
NATIONALSNAPSHOT
DEMOGRAPHICS
ECONOMICINDICATORS
HOUSINGMARKET
OUTLOOK - 2017
2Q 2017Avg. Asking
RentAvg.
Occupancy
Market Average $913 93.4%
Class A $1,160 95.1%
Class B $952 94.5%
Class C $739 89.4%
YearAnnual
OccupancyAnnual
Absorption
2Q17 93.4% 909**
2016 92.8% 1,079
2015 93.0% 929
2014 92.5% 1,340
2013 92.3% (288)
2012 93.3% 2,443
2011 90.7% (761)
2010 91.8% 2,543
2009 88.1% (1,400)
2008 91.3% (1,704)
2007 94.5% 1,026* - Includes Properties w/ 50+ conventional units
Total UnitsTotal Units
Under Construction
73,587* 536*
MULTIFAMILY QUARTERLY SNAPSHOT
Source: Axiometrics; Yardi Matrix
M A RK E T RE VIE W BIRMINGHAM
§ Approximately 909 units have been absorbed in the first half of 2017.§ Average asking rent increased to $913 in 2Q17, 2.1% above the rate recorded one year prior.§ Average occupancy fell 10 basis points Y-o-Y settling at 93.4% in the second quarter of 2017.
**Year to Date
DASHBOARD
NATIONALSNAPSHOT
DEMOGRAPHICS
ECONOMICINDICATORS
HOUSINGMARKET
OUTLOOK - 2017
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2Q17Class A 96.3% 95.7% 94.4% 95.8% 95.1% 95.3% 95.3% 94.7% 92.0% 93.3% 94.8% 95.1%Class B 95.9% 93.3% 93.1% 91.0% 92.1% 94.9% 94.0% 95.1% 93.5% 91.5% 94.3% 94.5%Class C 93.4% 95.1% 89.7% 87.0% 88.6% 92.2% 92.4% 92.2% 91.2% 88.8% 91.7% 89.4%
84%
86%
88%
90%
92%
94%
96%
98%
Occ
upan
cy R
ate
APARTMENT OCCUPANCY BY CLASS
Source: Axiometrics
M A RK E T RE VIE W BIRMINGHAM
DASHBOARD
NATIONALSNAPSHOT
DEMOGRAPHICS
ECONOMICINDICATORS
HOUSINGMARKET
OUTLOOK - 2017
Rent Growth Rank
Submarket Effective Rent
AnnualChange
Concession Value Occupancy
1 St. Clair County $831 3.6% $0.00 97.3%
2 Central $949 3.3% ($3.80) 93.1%
3 East $965 3.2% ($13.51) 93.0%
4 South $907 2.8% (15.42) 92.6%
5 North $695 0.1% ($6.95) 93.1%
6 Shelby County / Other $861 (4.1%) ($9.47) 97.3%
Birmingham Market Average $868 1.5% ($8.00) 93.4%
QUARTERLY TRENDS BY SUBMARKET
M A RK E T RE VIE W BIRMINGHAM
Source: Axiometrics
2Q 2017
DASHBOARD
NATIONALSNAPSHOT
DEMOGRAPHICS
ECONOMICINDICATORS
HOUSINGMARKET
OUTLOOK - 2017
AverageSF Permits2007-2016:
2,359
AverageMF Permits 2007-2016:
789
0
1,000
2,000
3,000
4,000
5,000
6,000
Single Family Permits Mulitfamily Permits*
PROJECTED
* - Multifamily Permits for Properties w/ 5+ Units
BUILDING PERMIT ISSUANCE
M A RK E T RE VIE W BIRMINGHAM
Source: U. S. Census Bureay; Moody’s Analytics
SF VS. MF
DASHBOARD
NATIONALSNAPSHOT
DEMOGRAPHICS
ECONOMICINDICATORS
HOUSINGMARKET
OUTLOOK - 2017
566
1,18
4
444
912
60
0
708
439
1,29
9
618
1,27
4
689
84%
86%
88%
90%
92%
94%
96%
0
200
400
600
800
1,000
1,200
1,400
Completions Occupancy
COMPLETIONS VS. OCCUPANCY
M A RK E T RE VIE W BIRMINGHAM
Source: Axiometrics
DASHBOARD
NATIONALSNAPSHOT
DEMOGRAPHICS
ECONOMICINDICATORS
HOUSINGMARKET
OUTLOOK - 2017
566
1,18
4
444
912
60 0
708
439 1,29
9
618
1,27
4
689
(1,8
91)
1,02
6
(1,7
04)
(1,4
00)
2,54
3
(761
)
2,43
0
(305
)
1,32
8
917
975
909
-2,500
-2,000
-1,500
-1,000
-500
0
500
1,000
1,500
2,000
2,500
3,000
Completions Absorption
COMPLETIONS VS. ABSORPTION
M A RK E T RE VIE W BIRMINGHAM
Source: Axiometrics
§ Through the first half of 2017,net absorption has outpaced deliveries by 31.9%.
DASHBOARD
NATIONALSNAPSHOT
DEMOGRAPHICS
ECONOMICINDICATORS
HOUSINGMARKET
OUTLOOK - 2017
1,24
2
940
725 75
8
484 51
9
1,00
5
1,39
6
829
1,32
1
845
103
0
200
400
600
800
1,000
1,200
1,400
1,600
2016 2017 2018 2019 2020 2021
No.
Uni
ts
New Supply Demand
PROJECTED SUPPLY AND DEMAND
M A RK E T RE VIE W BIRMINGHAM
Source: Axiometrics
FORECAST
MULTIFAMILY HOUSING
DASHBOARD
NATIONALSNAPSHOT
DEMOGRAPHICS
ECONOMICINDICATORS
HOUSINGMARKET
OUTLOOK - 2017
$51,845
$54,431
$45,694
$51,506
$45,204
$50,826
$49,725
$56,790
$58,887
$59,267
$55,886
17.5%
19.6%
20.1%
20.6%
21.0%
21.6%
22.5%
22.5%
23.4%
23.5%
28.8%
$9,072
$10,656
$9,204
$10,596
$9,480
$10,956
$11,184
$12,780
$13,752
$13,944
$16,068
Little Rock
Louisville
Mobile
Columbia
Greensboro
Birmingham
Memphis
Charlotte
Nashville
Atlanta
United States
2017 Median Household Income Rent as % of Income 2Q17 Average Annual Rent
HOUSING AFFORDABILITY
M A RK E T RE VIE W BIRMINGHAM
Source: Tetrad; Axiometrics
MEDIAN INCOME VS. ANNUAL AVERAGE RENT
DASHBOARD
NATIONALSNAPSHOT
DEMOGRAPHICS
ECONOMICINDICATORS
HOUSINGMARKET
OUTLOOK - 2017
$161
.0
$151
.9
$144
.8
$142
.8
$138
.9
$150
.2 $163
.4
$167
.0
$176
.9
$185
.5
$197
.4
$200
.8
$202
.9
$206
.1
$212
.4
$220
.1
Average Home Price 2007-2016:
$158,773
$0
$50
$100
$150
$200
$250
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Med
ian
Hom
e P
rice
in T
hous
ands
Historical Forecasted 2007-2016 Avg.
EXISTING HOME PRICES
M A RK E T RE VIE W BIRMINGHAM
Source: Moody’s Analytics
DASHBOARD
NATIONALSNAPSHOT
DEMOGRAPHICS
ECONOMICINDICATORS
HOUSINGMARKET
OUTLOOK - 2017
68.9
%
68.8
%
67.8
%
67.5
%
67.2
%
66.5
%
65.9
%
65.3
%
65.1
%
63.9
%
63.7
%
63.4
%
75.7
%
76.1
%
74.9
%
74.6
%
74.4
%
78.3
%
75.8
%
76.1
%
74.7
%
64.0
% 68.1
%
66.0
%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
U.S. Birmingham MSA Linear (Birmingham MSA)
HOMEOWNERSHIP RATE
M A RK E T RE VIE W BIRMINGHAM
Source: U. S. Census Bureau
§ According to the U.S. Census Bureau, the homeownership rate in the Birmingham MSA was 66.0% at the end of 2016; decreasing 210 bps over the previous 12-month period.
DASHBOARD
NATIONALSNAPSHOT
DEMOGRAPHICS
ECONOMICINDICATORS
HOUSINGMARKET
OUTLOOK - 2017$60.
9
$125
.1
$88.
4
$275
.0
$297
.9 $353
.5
$152
.7
$46.
4
$105
.3
$250
.9
$365
.6
$544
.8
$551
.8
$652
.4
$456
.7
$125
.3
$0
$100
$200
$300
$400
$500
$600
$700
Milli
ons
Birmingham MSA Volume
ANNUAL TRANSACTION VOLUME
M A RK E T RE VIE W BIRMINGHAM
Source: Real Capital Analytics
MULTIFAMILY ASSETS*
* Based on independent reports of properties and portfolios $2.5 million and greater.
DASHBOARD
NATIONALSNAPSHOT
DEMOGRAPHICS
ECONOMICINDICATORS
HOUSINGMARKET
OUTLOOK - 2017
$99.
0
$96.
6
$85.
1
$87.
1
$85.
4
$103
.4
$111
.3
$114
.9 $130
.5 $140
.9
$144
.4
$56.
3
$59.
9
$59.
8
$56.
7
$44.
3
$60.
5
$59.
6
$75.
5
$76.
3
$82.
2 $89.
9
U.S. Ten-Year Average: $105,425
Birmingham Ten-Year Average:
$63,125
$0
$40
$80
$120
$160
($) T
hous
ands
USA Birmingham U.S. Ten-Year Average Birmingham Ten-Year Average
ANNUAL AVERAGE PRICE PER UNIT
M A RK E T RE VIE W BIRMINGHAM
Source: Real Capital Analytics
MULTIFAMILY TRANSACTIONS*
* Based on independent reports of properties and portfolios $2.5 million and greater.