S
ite work is still underway at the Greenbrier Preserve in Huntsville’s Limestone County, and new builds now represent 25 % of all home sales in the metro as of Jan. 16 2025. Scott Turner ([email protected]) notes that home prices across most of Huntsville have slipped compared with last year, a pattern echoed by a University of Alabama study that found average rents in the Huntsville–Decatur area are also falling.
The market may shift once the federal shutdown ends, the U.S. Space Command headquarters moves in, and FBI personnel relocate to the region. Analysts say a drop in interest rates could also influence demand. “Affordability challenges persist nationwide, but north Alabama remains a bright spot,” says Matt Curtis, head of one of the area’s largest real‑estate firms. “Our price‑to‑income ratio and job growth make this one of the Southeast’s most attractive housing markets.”
Median prices in September were $320,000 for the Huntsville market (Madison County) – down from $338,000 a year earlier and $330,000 in August. In Athens (Limestone County) the median was $318,000, a decline from $325,000 in August and $324,000 in September 2024. Decatur (Morgan and Lawrence counties) saw the lowest median at $244,000, down from $260,000 in August and $265,000 last year. Marshall County bucked the trend, rising from $250,000 a year ago to $262,000 last month, though it fell from $270,000 in August.
Jared Shepard of The Pugh Group at REMAX Alliance points out that the modest price drop from August to September reflects a typical seasonal shift as the summer boom eases into fall. “It doesn’t signal a stagnant market; it simply returns to a more predictable pace,” he says. Buyers remain active but more cautious, with average days on market hovering near 60 (up slightly from 56–57 the previous month).
Inventory trends could push prices back up. “This is the first month in 24 that we haven’t seen double‑digit inventory growth,” Curtis says. Huntsville–Madison County inventory fell 8 %. The market currently has 2,427 homes available, down from 2,633 a year ago. Homes stay on the market about 54 days, compared with 42 days in September 2024. Athens inventory slipped from 971 a year ago to 963 last month, with an average of 63 days on market versus 39 a year earlier. Marshall County inventory fell from 430 to 394, with homes staying 73 days versus 41 a year earlier. Decatur saw inventory rise from 486 to 504, with an average of 50 days on market versus 44 a year earlier.
Nationally, searches for “help with mortgage” have climbed to 2009 levels, but Curtis believes Huntsville’s market remains more resilient due to a higher proportion of cash buyers, stronger local equity, and a robust economy. “There are sellers nationwide struggling, but our market is far less affected,” he says.
The rental market mirrors the buying trend. In September, the Huntsville metro (Madison and Limestone counties) averaged $1,400 per month, a 0.12 % rise from a year ago but down from $1,427 in March and $1,595 in December 2023. A Huntsville resident would need an annual salary of $56,000 to avoid rent burden. In Decatur (Morgan and Lawrence counties), the average rent was $1,255, a 2.27 % drop from a year ago, with a rent‑burden threshold of $50,000.
David Wilson, a land specialist with Crunkleton Commercial Real Estate, attributes the rent decline to an oversupply of apartments stemming from Huntsville’s recent boom in apartment and build‑to‑rent developments. The excess inventory has pushed occupancy rates into the low‑to‑mid 80 % range, slowing new construction. Wilson believes that as construction slows, occupancy may rebound.
In summary, Huntsville’s housing market is experiencing modest price declines and a slight softening in rental rates, but remains attractive due to strong affordability metrics and job growth. Inventory levels are falling, and the market is shifting toward a more sustainable pace as seasonal dynamics settle.
