Population as a Driver of Total Home Sales
One of the more important drivers of demand for residential real estate is population size. The Birmingham metro area*, for example, is home to roughly 24% of the state’s 4.9 million residents, and the effects can be seen clearly above.
The chart, however, does reveal a few surprises. The Daphne-Fairhope-Foley metro area has roughly 4.5% of the state’s total population, yet represented 11.3% of the state’s residential sales year to date (YTD) through April. This is slightly greater than the Huntsville area (Madison County only), which has roughly double the number of residents. But each market is unique and the extensive secondary home market in Baldwin County, combined with recent economic growth, drives the relatively large number of residential home sales in the area.
However, the Huntsville metro area also includes Athens (Limestone County). When total sales from each market are added together, it is the second largest market for residential sales (2,881) through April.