Housing report for Montgomery, AL

Montgomery Affordable Housing Report:
Q1 2023

Last updated on Apr 1, 2023

Housing overview of Montgomery, AL

373,552

population in Montgomery, AL

177,065

workers in Montgomery, AL

171,211

housing units needed

Montgomery's burgeoning population and dynamic economy have created a significant demand for workforce housing. In this market report, we analyze the current state of the city's housing market, emphasizing the growing need for affordable and immediate housing.

Montgomery has a housing gap of 2,868 units; new construction is a drop in the bucket

Population:Across metro Montgomery the population has risen to 373,552.
Workforce:Montgomery's workforce has grown to 177,065, indicating strong economic growth and increasing demand for housing.
Housing Unit Demand:To accommodate the population and workforce, Montgomery requires 171,211 housing units.
Current Housing Stock:The metro area currently offers 168,343 housing units, resulting in a deficit of 2,868 homes.

Montgomery workers would need to earn an extra 32.17% to afford the median rental

Median Rental Price:The median rent for an apartment in Montgomery is $1,152, highlighting increasing rental prices.
Income Needed to Afford a Rental:A tenant needs to make at least $41,472 and pay $2,304 upfront to move-in (first month’s rent and security deposit). Typically, to qualify for a home, a landlord requires 3x rent in income, in addition to credit score minimums and eviction screening. Finally, most apartments charge an application fee.
Median Income in Montgomery:The city's median income is $28,129, demonstrating a significant affordability gap.
Affordability Gap:The affordability gap in Montgomery stands at $13,343. This means that workers need to earn 32.17% more to qualify and afford the median rental in the greater Montgomery area.

Expanding affordable workforce housing in Montgomery

So how do we house the growing population of healthcare workers, drivers, technicians, and care workers that make up Montgomery’s workforce?

Solution 1: Build more housing

Despite the evident need for housing, only 53 permits have been issued so far in 2023, indicating a slow response from the market to address this demand. This shortage has led to increased rental prices

Solution 2: Relocate workers farther outside of the city

We believe workers in our community deserve to live in our community. While some may desire to relocate further their place of work, this is not a viable solution for all workers.

Solution 3: Do more with existing housing

We can do more with our existing housing to meet the needs of the metro-area population. There are exciting developments to address housing shortages and affordability challenges by increasing housing density. Some examples include converting single-family into multi-family homes, commercial to residential conversions, housing ADUs, co-living, and shared housing. At PadSplit, we are growing the country’s leading shared housing marketplace.

Sources: Census, Bureau of Labor & Statistics, ApartmentList, PadSplit

Shared Housing is a fast, cost-effective way to scale affordable housing for the workforce

PadSplit was founded five years ago and has grown to become the country’s largest shared housing marketplace. Real estate investors, homeowners, and community partners work with PadSplit to provide affordable, dignified housing to workers.

To learn more, check out the following:

Hosting on PadSplit PadSplit impact report Rooms for rent in Montgomery