Birmingham loves Avondale Brewery. When it opened in 2011, It was by far one of the coolest attractions in town. But, it was in a neighborhood many had never ventured to.
Over the last 8 years, the area has boomed. The brewery continues to thrive, and it is now surrounded by delicious restaurants, music venues, and a residential lifestyle that continues to develop.
I was curious to explore exactly what the effect of this development, anchored by the brewery, has been on the local housing market.
How did it effect prices, market stability, and demand.
What does the data say?
I collected price data for the 8 years that the brewery has been there. It was collected from listings within a 1 mile radius of the brewery’s location. Then, I collected the same data within a 20 mile radius from Birmingham City Hall. Here are the findings.
My thoughts and key points
- Avondale out-performed the Birmingham market in price appreciation. But not by as much as many might think. Only about 6.5% over the 8 year period.
- The number of sales in the area also increased at a rate outpacing Greater Birmingham. 4.5% out-performance over the period.
- Although the brewery opened in 2011, and was immediately a success, It seems to have taken until 2015 for there to be any significant effect on local housing prices.
- The market seems to have become more stable and competitive. Sales price to listing price increased 4.81% to 98.71% over the period.
- The Avondale data is not ideal due to it’s small sample size. It averaged only 95 sales per year. However, I feel it’s still a useful gauge.
I’d love to hear any thoughts or ideas for further research! Click to send me an email.
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