Rainbow City, AL Real Estate Market

Source & Methodology

Analytics built by:   Location, Inc.

Raw data sources:   American Community Survey (U.S. Census Bureau), U.S. Department of Housing and Urban Development, Federal Housing Finance Agency.

Date(s) & Update Frequency:
  • Home Values, Rents: Reflects Q2 2021. Updated quarterly.
  • Setting, Housing Stock, Homeownership: 2019 (latest available). Updated annually.

Methodology:   NeighborhoodScout uses over 600 characteristics to build a neighborhood profile… Read more about Scout's Real Estate Data

Rainbow City, AL Housing Market Trends

With a population of 9,611, 3,847 total housing units (homes and apartments), and a median house value of $243,494, Rainbow City real estate is some of the most expensive in Alabama, although Rainbow City home values aren't among America's most expensive.

Single-family detached homes are the single most common housing type in Rainbow City, accounting for 62.27% of the city's housing units. Other types of housing that are prevalent in Rainbow City include large apartment complexes or high rise apartments ( 19.07%), mobile homes or trailers ( 10.73%), and a few duplexes, homes converted to apartments or other small apartment buildings ( 7.37%).

The most prevalent building size and type in Rainbow City are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 59.85% owning and 40.15% renting.

There is a lot of housing in Rainbow City built from 1970 to 1999 so parts of town may have that "Brady Bunch" look of homes popular in the '70s and early '80s, although some of these houses were built up through the early '90s as well. There is also a lot of housing in Rainbow City built between 2000 and later ( 18.12%). A lesser amount of the housing stock also hails from between 1940-1969 ( 13.60%).

Vacant housing appears to be an issue in Rainbow City. Fully 14.91% of the housing stock is classified as vacant. Left unchecked, vacant Rainbow City homes and apartments can be a drag on the real estate market, holding Rainbow City real estate prices below levels they could achieve if vacant housing was absorbed into the market and became occupied. Housing vacancy rates are a useful measure to consider, along with other things, if you are a home buyer or a real estate investor.

Rainbow City Home Appreciation Rates

Rainbow City's appreciation rate notably has been below the national average for the last ten years. The average annual home appreciation rate in Rainbow City during the period has been just 1.89%, which is lower than 80% of US communities.

Over the last year, Rainbow City appreciation rates have trailed the rest of the nation. In the last twelve months, Rainbow City's appreciation rate has been 7.78%, which is lower than appreciation rates in most communities in America. In the latest quarter, NeighborhoodScout's data show that house appreciation rates in Rainbow City were at 4.26%, which equates to an annual appreciation rate of 18.15%.

Importantly, this makes Rainbow City one of the highest appreciating communities in the nation for the latest quarter, and may signal the city's near-future real estate investment strength.

Relative to Alabama, our data show that Rainbow City's latest annual appreciation rate is lower than 60% of the other cities and towns in Alabama.

Average Home Values

 

Median Home Value:
$243,494

Rainbow City, AL HOME PRICES

> $1,226,000
0.0%
0.0%
$919,001 - $1,226,000
0.4%
0.4%
$613,001 - $919,000
3.4%
3.4%
$490,001 - $613,000
0.9%
0.9%
$368,001 - $490,000
10.5%
10.5%
$245,001 - $368,000
15.9%
15.9%
$123,001 - $245,000
49.5%
49.5%
$62,001 - $123,000
15.0%
15.0%
$0 - $62,000
4.3%
4.3%
0.0% 100.0%
% OF HOMES
Value Relative To State

High for Nation

Very High for AL

Value Relative To Nation

Number Of Homes And Apartments:
3,847

Rainbow City Appreciation Rates

 
Time Period Total Appreciation Avg. Annual Rate Compared To
AL*
Compared To
America*
Latest Quarter:
2021 Q1 - 2021 Q2
Last 12 Months:
2020 Q2 - 2021 Q2
Last 2 Years:
2019 Q2 - 2021 Q2
Last 5 Years:
2016 Q2 - 2021 Q2
Last 10 Years:
2011 Q2 - 2021 Q2
Since 2000:
2000 Q1 - 2021 Q2
47.05% 1.81%
3
2
* 10 is highest

Rent & Ownership

 

Average Market Rent:
$1,095 / per month

Homeownership Rate

Owners
59.8%
59.8%
Renters
40.2%
40.2%
Vacant
14.9%
14.9%
0.0% 100.0%
% OF HOMES

Housing Market Details

 

Age of Homes

2000 or Newer
18.1%
18.1%
1970 - 1999
67.9%
67.9%
1940 - 1969
13.6%
13.6%
1939 or Older
0.4%
0.4%
0.0% 100.0%
% OF HOMES

Types of Homes

Single-Family
62.3%
62.3%
Townhomes
0.6%
0.6%
Small Apt. Buildings
7.4%
7.4%
Apt. Complexes
19.1%
19.1%
Mobile Homes
10.7%
10.7%
Other
0.0%
0.0%
0.0% 100.0%
% OF HOMES

Home Size

No Bedroom
1.4%
1.4%
1 Bedroom
5.8%
5.8%
2 Bedrooms
26.5%
26.5%
3 Bedrooms
48.2%
48.2%
4 Bedrooms
15.5%
15.5%
5 or more bedrooms
2.6%
2.6%
0.0% 100.0%
% OF HOMES

Popular Neighborhoods in Rainbow City

Zip Codes in Rainbow City, AL