Pelham, Birmingham, AL—35242
Real Estate Data & Market Trends
Key Metrics at a Glance
Home Price Trends — Pelham, Birmingham, AL
As of Oct '25, the median home price in Pelham, Birmingham, AL is $550,000, with a year-over-year change of 2.3%. This indicates that home prices in Pelham, Birmingham, AL are increasing. According to Zillow, the 1-year price projection is 0.1%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $550,000 | 2.3% |
| Single Family | $564,000 | 2.4% |
| Condos | $266,000 | 0.0% |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $268,000 | 0.8% |
3 Bed | $396,000 | 1.5% |
4 Bed | $612,000 | 2.5% |
| 5 Bed | $831,000 | 3.0% |
% of Housing Stock
Rental Trends — Pelham, Birmingham, AL
As of July '25, Rentcast reports the average rent in Pelham, Birmingham, AL is $2,100, with a year-over-year rent change of -11.8%. Per bedroom, the median rent as of July '25 in Pelham, Birmingham, AL is studios: $1,350, 1-bedrooms: $1,210, 2-bedrooms: $1,620, 3-bedrooms: $2,420, 4-bedrooms: $2,930. The most common rental property sizes in Pelham, Birmingham, AL are 2-bedroom and 1-bedroom, accounting for 46.9% and 28.6% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $2,150 | $2,100 |
| Studio Rent | $1,110 | $1,350 |
| 1 Bed Rent | $1,010 | $1,210 |
| 2 Bed Rent | $1,720 | $1,620 |
| 3 Bed Rent | $2,200 | $2,420 |
| 4 Bed Rent | $2,850 | $2,930 |
% of Rental Stock
Property Listings — Pelham, Birmingham, AL
As of Oct '25, Realtor.com reports that the median days on market for a home in Pelham, Birmingham, AL is 69. This is a increase of 29.0% from last year, suggesting that homes are sitting on the market longer than last year. The percentage of listed homes with a reduced price is 22.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $599,000 | 8.0% |
Listing Count | 285 | -22.0% |
| Listings as % of Homes | 0.7% | -22.0% |
Days on Market | 69 | 29.0% |
Demographics — Pelham, Birmingham, AL
As of the latest ACS Survey released in 2023, Pelham, Birmingham, AL has a population of 57,000, which has increased by 3.3% over the past 5 years. Pelham, Birmingham, AL is a moderately popular place for families, as children make up 20.4% of the population. The area has a highly educated workforce, with 64.5% of adult residents holding a bachelor’s degree or higher. There are some residents working remotely, with 15.9% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 57,000 | 3.3% |
% Under 18 | 20.4% | -10.5% |
% Seniors | 18.7% | 20.6% |
% WFH | 15.9% | 144.6% |
% w/ College Degree | 64.5% | 7.1% |
As of the latest ACS Survey released in 2023, Pelham, Birmingham, AL is a predominantly white area, with 78.1% of the population identifying as white. The white population has shrunk by 4.9% in the last 5 years. The second most common race or ethnicity in Pelham, Birmingham, AL is black, making up 10.4% of the population. Foreign-born residents account for 5.9% of the population in Pelham, Birmingham, AL, and this percentage has decreased by 7.8% as of the ACS Survey 5 years prior, suggesting fewer immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 78.1% | -4.9% |
% Black | 10.4% | 30.0% |
% Hispanic | 3.6% | -16.3% |
% Asian | 4.0% | 2.6% |
% Foreign Born | 5.9% | -7.8% |
Mortgage and Risk — Pelham, Birmingham, AL
According to HUD data as of 2023, there were 683 mortgage originations in Pelham, Birmingham, AL, of which 93.0% of loans were conventional mortgages. The average loan-to-value was 51.0%, with 13.0% above 90% LTV (elevated). This implies medium mortgage risk in Pelham, Birmingham, AL. Investor activity is low, as 1.0% of loans were by investors. 8.0% of loans were cash-out refinances, suggesting few homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 683 |
% Conventional Loans | 93.0% |
% Government Loans | 7.0% |
% Investor Loans | 1.0% |
% Second Loans | 1.0% |
% Cash Out Refinance | 8.0% |
Loan Activity
Rentals and Section 8 — Pelham, Birmingham, AL
As of 2024, the percent of homes in Pelham, Birmingham, AL under the Section 8 program is 0.0%. This is considered low, suggesting that the neighborhood is sparsely composed of Section 8 homes. Section 8 opportunity is good when HUD pays more than market rent. 1-bedroom units appear to be good home sizes to consider for Section 8 housing in Pelham, Birmingham, AL, because HUD payments exceed market rent, while 2-bedroom and 3-bedroom and 4-bedroom units do not.
Section 8 Market Size
Total Units under HUD | 19 |
Total Units Section 8 | 11 |
% Rentals under Section 8 | 0.0% |
% Occupied Section 8 | N/A |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $520 | $1,010 | $1,530 |
| 2 Bedroom | -$30 | $1,720 | $1,690 |
| 3 Bedroom | -$90 | $2,200 | $2,110 |
| 4 Bedroom | -$460 | $2,850 | $2,390 |
Affordability — Pelham, Birmingham, AL
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 4.4 |
| Median Home Price | $550,000 |
| Median Household Income | $116,000 |