- Birmingham is one of the best metros for renters thanks to a mix of economic and quality of life metrics, such as low cost of living alongside reasonable commute times, good air quality and pleasant weather.
- The metropolitan area ranks 5th lowest nationwide for cost of living, making it more affordable than many other large metros, while also boasting the 5th lowest unemployment rate.
- Birmingham metro displays a particularly high share of single-family renters (38.5%), making it an attractive option for those seeking space, privacy, and comfort without the burdens of homeownership.
A Point2Homes study ranked the best U.S. metros for house renters, evaluating 75 of the largest metros nationwide across 25 key metrics. From cost of living and unemployment rates to renters’ insurance costs and commute times, the analysis highlights where renting makes the most sense. Scoring well across housing, economy, community and quality-of-life factors, Birmingham, AL, secures the 21st spot overall.
With soaring house prices, high interest rates and even higher down payments, homeownership is taking a backseat for many Americans. And, with a rapidly changing job market that has seen a huge shift in how and where people work, renting is seen as a flexible, financially safer and reliable option compared to buying — especially if we’re talking about single-family homes.
Luckily, a mix of low costs, steady employment, and healthy living conditions makes renting in Birmingham one of the standout choices for those looking for both affordability and quality of life.
Birmingham Scores High Across Various Metrics to Rank Among the Best Metros for House Renters
Scoring a total of 53.20 out of 100, Birmingham is just a few points below the number one metro in the study, Richmond, VA. This puts the Alabama metro in 21st place, scoring well across a wide variety of metrics in terms of economy, housing, community, and quality of life.
Indeed, Birmingham excels in some areas, ranking among the top U.S. metros in terms of air quality, cost of living, and housing costs. Here are just some of the reasons it lands among the best large metros for house renters:
1. Birmingham Has One of the Lowest Costs of Living
Among the 75 metros analyzed, Birmingham has the 5th lowest cost of living, including rent and utilities. Compared to more expensive metros like San Jose or San Francisco, Birmingham is an affordable alternative, particularly for those able to work fully remotely.
The low cost of living may also explain why the metro performs well in terms of housing costs. As much as 57% of renter households here can comfortably afford their housing expenses, putting the metro in 13th place for the metric.
Having said that, with an average income for a single-family renter household of about $63,400, the metro scores fairly poorly in terms of average wages. However, this is somewhat offset by the low cost of living.
More encouraging news for renters looking to call Birmingham home is that it ranks as joint 5th in terms of low unemployment rate (alongside Raleigh, NC; Virginia Beach, VA; and Salt Lake City, UT). The metro is home to two Fortune 500 companies, Regions Financial Corporation and Vulcan Materials Company. Furthermore, Birmingham also records a year-on-year job growth of 1.1%. While this isn’t a particularly high-ranking metric for the metro, it’s a positive indication of a healthy economy.
2. Birmingham Renters Enjoy a Good Quality of Life
Single-family renters make up 38.5% of Birmingham households, the 13th-highest proportion among all the metros studied. The data points to the average single-family rental featuring 3.8 bedrooms, providing renters with plenty of living space for families, shared households, or those who value extra room.
While housing and economic factors are big considerations for renters, quality of life matters just as much — and Birmingham shines in this area.
The metro enjoys clean air nearly 90% of the year, ranking second only to Honolulu, HI. Birmingham also benefits from pleasant weather, with an average temperature that’s close to ideal. On top of that, commute times average 24 minutes, among the shortest in the country and a full ten minutes faster than metros known for bad traffic, such as New York.
Balancing affordability, employment opportunities, and quality of life, Birmingham proves that renting here isn’t just a practical choice — it’s a lifestyle decision that offers comfort, stability, and value in one of the nation’s most renter-friendly metros.
Methodology
Point2Homes.com is a real estate listing portal for rental homes across the United States. Part of Yardi Systems, Point2Homes covers housing trends and news through comprehensive studies that draw from internal data, public records, governmental sources, and online research.
- For this study, we considered the 75 largest Metropolitan Areas based on the most recent data from the 2023 1-year ACS.
- To determine the best metros for house renters, this report uses a combination of ranking scores and weighted averages across 25 relevant metrics, divided into two categories: Economy & Housing; and Community & Quality of Life:
- Each metric received a score based on the metric’s minimum and maximum value multiplied by the metric’s weight. The score for the final ranking was based on the sum of scores across all metrics. Ranking metrics and data sources:
Economy & Housing
- Cost of Living for Single-Family Renter Households (Rent + Utilities) compared to the National Average: Weight: 8%; Source: IPUMS*
- Renters Insurance (state level): Weight: 2%; Source: Insurance Information Institute
- Share of Single-Family Renter Households: Weight: 4%; Source: IPUMS
- Share of Single-Family Renter Households comfortably affording Housing Costs: Weight: 4%; Source: IPUMS
- Single-Family Renter Household Average Income: Weight: 8%; Source: IPUMS
- Unemployment Rate: Weight: 8%; Source: Bureau of Labor Statistics
- Job Growth: Weight: 4%; Source: Bureau of Labor Statistics
- Average Number of Bedrooms per Single-Family Renter Household: Weight: 2%; Source: IPUMS
- Average Number of Vehicles per Single-Family Renter Household: Weight: 2%; Source: IPUMS
- Average Gasoline Price: Weight: 4%; Source: aaa.com
Community & Quality of Life
- Community Well-Being Index: Weight: 8%; Source: Sharecare.com
- Safety (Violent & Property Crime Rate): Weight: 8%; Source: Federal Bureau of Investigation
- Average Commute Time: Weight: 4%; Source: IPUMS
- Annual Hours of Delay per Commuter Average: Weight: 4%; Source: Texas Transportation Institute
- Walkability Index: Weight: 4%; Source: Environmental Protection Agency
- Share of Days with Good Air Quality: Weight: 4%; Source: Environmental Protection Agency
- Difference Between Average & Ideal Annual Temperature: Weight: 4%; Source: National Oceanic and Atmospheric Administration
- Quality of Education & Attainment Gap: Weight: 4%; Source: WalletHub
- Food Services & Drinking Places (per 10,000 residents): Weight: 2%; Source: BLS
- Fitness & Recreational Sports Centers (per 10,000 residents): Weight: 2%; Source: BLS
- Golf Courses & Country Clubs (per 100,000 residents): Weight: 2%; Source: BLS
- Performing Arts Companies (per 100,000 Residents): Weight:2 %; Source: BLS
- Motion Picture & Video Exhibition Places (per 100,000 residents): Weight: 2%; Source: BLS
- Libraries & Archives (per 100,000 residents): Weight: 2%; Source: BLS
- Amusement & Theme Parks (per 1,000,000 residents): Weight: 2%; Source: BLS
*IPUMS means Integrated Public Use Microdata Series and provides census and survey data from around the world integrated across time and space. IPUMS is a part of the Institute for Social Research and Data Innovation at the University of Minnesota. Steven Ruggles, Sarah Flood, Matthew Sobek, Daniel Backman, Annie Chen, Grace Cooper, Stephanie Richards, Renae Rodgers, and Megan Schouweiler. IPUMS USA: Version 15.0 [dataset]. Minneapolis, MN: IPUMS, 2024. https://doi.org/10.18128/D010.V15.0 Images: Gorodenkoff; Wirestock Creators; Kevin Ruck; Joe Guetzloff/Shutterstock.com.
Image: Sean Pavone/Shutterstock.com
Fair use and redistribution
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