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Homewood

Birmingham, AL

Neighborhood Market Analysis

Q3 2025 Report
$598,950 (June 2025)
Median Home Price
High (most errands can be accomplished on foot, especially in Edgewood and downtown Homewood).
Walkability Score
Consistently rated among the best in Alabama; high test scores and strong extracurriculars.
School Rating

Location Overview

Neighborhood Boundaries

Generally bounded by Red Mountain to the north, Lakeshore Drive to the south, I-65 to the west, and the Mountain Brook city limits to the east.

Zip Codes

352093521935259

Market Data Summary

Price Range$173,000 (2BR) to $1,300,000+ (5BR+)
Price per Sq Ft$292 (June 2025)
Inventory LevelsLow inventory, with new listings down 8.5% from previous month.

Property Characteristics

Home Types & Architecture

Home Types

Single-family homesTownhomesCondos

Architectural Styles

CraftsmanCottageTraditionalMid-century modernNew construction infill

Property Details

Typical Lot Sizes0.15 to 0.35 acres; some larger lots in older sections.
Home Age Range1920s-2020s; mix of historic and new builds.
Construction QualityGenerally high, with many renovated or well-maintained homes; some older homes may need updates.

Community Profile

Demographics & Lifestyle

Demographics

Diverse, with a strong presence of young professionals, families, and some retirees. Median household income above Birmingham average.

Community Vibe

Walkable, vibrant, and close-knit; active neighborhood associations and civic engagement.

Typical Residents

  • Young professionals
  • Families with children
  • Retirees

Family Friendly

Very family-friendly, with top-rated schools, parks, and community events.

Amenities & Lifestyle

Parks & Recreation

  • • Homewood Central Park
  • • Patriot Park
  • • Overton Park
  • • Shades Creek Greenway

Dining Options

  • • Saw’s BBQ
  • • Homewood Gourmet
  • • Trattoria Zaza
  • • Little Donkey

Shopping Centers

  • • Downtown Homewood retail district
  • • SoHo Square
  • • Brookwood Village (nearby)

Local Businesses

  • • Boutique shops
  • • Coffee houses
  • • Fitness studios
  • • Local grocers

Education & Schools

Consistently rated among the best in Alabama; high test scores and strong extracurriculars.
Overall School Rating

Elementary Schools

  • • Edgewood Elementary
  • • Shades Cahaba Elementary

Middle Schools

  • • Homewood Middle School

High Schools

  • • Homewood High School

Private Schools

  • • Our Lady of Sorrows Catholic School
  • • John Carroll Catholic High School

Transportation & Accessibility

Transit & Roads

Public Transit

  • • MAX bus routes

Major Roads

  • • Lakeshore Drive
  • • Oxmoor Road
  • • I-65

Commute & Walkability

Commute Times10-15 minutes to downtown Birmingham; 20-25 minutes to UAB Medical Center.
WalkabilityExcellent in central Homewood; moderate in outlying areas.
ParkingStreet and driveway parking; can be tight near downtown and schools during peak hours.

Marketing Intelligence

Target Buyer Types

  • Move-up buyers
  • Young families
  • Medical professionals
  • Investors

Key Selling Points

  • Top-rated schools
  • Walkable lifestyle
  • Proximity to downtown Birmingham
  • Charming architecture

Pricing Considerations

Price aggressively but realistically; homes priced at or just below market value often attract multiple offers.

Common Objections & Response Strategies

Objection: High home prices compared to Birmingham average

Response Strategy:

Emphasize school quality, walkability, and long-term appreciation potential.

Objection: Older homes may need updates

Response Strategy:

Highlight recent renovations or provide cost estimates for upgrades.

Objection: Limited inventory and fast-moving market

Response Strategy:

Prepare buyers for quick decisions and pre-approval; offer off-market opportunities if possible.

Investment Insights

Investment Potential

Appreciation Potential

Strong, with recent rapid price growth and ongoing demand.

Rental Demand

High due to proximity to UAB, downtown, and top schools.

Buyer Competition

Intense, with multiple offers common on well-priced homes.

Best For

  • Families
  • Young professionals
  • Investors seeking stable appreciation

Potential Concerns

  • Rising prices may limit affordability
  • Older homes may require updates

Professional Recommendations

1

Educate buyers on fast-moving market and need for pre-approval.

2

Network with local agents for off-market listings.

3

Highlight school ratings and walkability in marketing.

4

Stage homes to emphasize open layouts and outdoor spaces.

5

Advise sellers on realistic pricing to attract multiple offers.

6

Prepare buyers for potential bidding wars and set clear offer strategies.

Competitive Analysis

Comparable Markets

  • Vestavia Hills
  • Mountain Brook
  • Hoover

Market Positioning

Premium, family-friendly, walkable suburb with urban amenities.

Competitive Advantages

  • Better walkability than Vestavia/Hoover
  • More affordable than Mountain Brook
  • Stronger community vibe than many suburbs

Price Comparison

Median price below Mountain Brook ($780K-$999K), above Birmingham ($354.9K) and Hoover ($476K).

Investment Metrics

3.5-4.5% for single-family rentals (2025 est.)
Cap Rates
4-5% gross yield typical for updated homes
Rental Yields
22-25 (reflects strong owner-occupant demand)
Price-to-Rent
Positive for well-bought properties, especially with value-add; tight margins for turnkey homes.
Cash Flow
Moderate to strong appreciation expected over next 3-5 years.
Appreciation

Buyer Journey Insights

First-Time Buyers

Challenging due to price point; best opportunities in smaller homes or condos.

Move-Up Buyers

Ideal for those seeking better schools and lifestyle; many buyers relocating from Birmingham proper.

Downsizers

Attractive for those seeking walkability and amenities; limited single-level inventory.

Investors

Strong rental demand, especially for updated homes near downtown and UAB.

Relocators

Popular with medical professionals and corporate transferees due to location and schools.

This neighborhood analysis was generated using hyperlocal data and AI intelligence.

Neighborhood conditions change - consult with local real estate professionals for the most current information.

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