17 minute read
By Noah Logan
from HBJ Jul 22 Issue
Rent or Buy? A Look Into Huntsville’s Housing Market
By Noah Logan
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Is it still cheaper to buy a house than it is to rent in Huntsville? A recent study from California based ATTOM Data Solutions found that, while Madison County is included in the 58% of counties where it’s more affordable to buy a home, the gap between owning and renting is smaller than ever and still decreasing.
In their 2022 Rental Affordability Report, ATTOM incorporated fair market rent data from the Department of Housing and Urban Development, wage data from the Bureau of Labor Statistics and public-record sales-deed data to analyze the cost comparison in 1,154 counties across the United States.
With housing prices growing at a faster rate than rent prices in almost 90% of counties analyzed, the difference between average monthly rent and average monthly mortgage payments is only $30, the lowest ever recorded. To give an idea as to how quickly the gap has narrowed, the price difference was $322 in March 2020.
In order to determine the affordability of both options, it’s important to compare the cost of each as a percentage of the average monthly wages for each county. ATTOM determined “rental affordability” by analyzing the average fair market rent for a three-bedroom property as a percentage of the average monthly wage.
Similarly, home-buying affordability is the monthly house payment for a median-priced home (based on a 3 percent down payment and including mortgage, property tax, homeowner’s insurance and private mortgage insurance) as a percentage of the average monthly wage.
How does Madison County compare to the national averages? For starters, both rent and mortgage prices have increased at a faster pace than the national median rate. The average rent for a three bedroom apartment in the county increased from $1,172 in 2021 to $1,302 in 2022, an 11.1% jump. However, that is less than half the rate that Madison County home prices have been rising.
Calculated from the 6,000 publicly available home sales from January - November 2021, the average housing price jumped to $250,000, which is 25% higher than the same time period in 2020.
When comparing these costs to the 2021 average weekly wages, $1288, the monthly costs associated with home ownership made up a slightly less percentage of the average monthly income than the average price of rent. Home affordability was calculated at 21% compared to 23.3% for rental affordability.
The 2% gap between the two is similar in other Alabama metros like Birmingham where rental affordability was calculated to be 26% and 21% for home affordability. The similarities end there though. Compared to the 11% increase in rent payments and 25% increase in housing costs in Madison County, Jefferson County actually saw rent payments actually drop by 6% while housing costs only rose by 4%.
Madison County was also an outlier when it comes to rent price changes compared to the change in average wages. It was one of the few counties where the average cost of rent is increasing faster than the growth rate for the average wages. w
Bank Independent Celebrates Groundbreaking of West Madison Location
Bank Independent’s North Alabama roots run deep—it began in Leighton with a group of farmers who pooled their resources following the closure of the area’s only bank. Recognizing the needs of the community, they opened the Bank of Leighton in 1947.
The new organization was renamed First Colbert Bank in 1965, then in 1967 it advanced from a state-chartered bank to a national bank in 1967, becoming First Colbert National Bank after moving its headquarters to Sheffield.
In 1975, Board Chairperson Edward Fennel Mauldin organized a group of investors, including some directors of First Colbert National Bank, to charter The Bank of Florence. The two banks merged on December 1, 1982 to become Bank Independent. The new bank grew steadily over the years, adding additional locations across North Alabama.
In August 2009, the bank welcomed Interstate Billing Service, Inc, (IBS) to the family. IBS, a nationwide corporate billing service based in Decatur, provided new growth opportunities as well as 87 additional employees.
Now Bank Independent has another success to celebrate—on Wednesday morning, the bank chain broke ground at the future site of its 30th North Alabama location. The new West Madison Sales Office, to be located at 11254 County Line Road next to Dunkin Donuts, will be the third in the HuntsvilleMadison area.
The well-attended, groundbreaking celebration featured a number of dignitaries including Madison Chamber Executive Director Michelle Epling, Madison Mayor Paul Finley, Madison County Commissioner Dale Strong, Bank Independent President and CEO Macke Mauldin, and Executive Vice
By Dawn Suiter / Photos by Dawn Suiter
President Preuit Mauldin.
In her address to the audience, Epling repeated one of Bank Independent’s core belief statements, ‘a rising tide lifts all boats.’
“If Bank Independent can help individuals thrive both economically and socially, our entire city wins,” she said. “As they enter their seventh decade in the North Alabama community, we are honored that this bank has chosen the City of Madison to build its next location and to continue to make a difference in people’s lives for years to come.”
Area President Tim Singleton then greeted the audience, expressing excitement about breaking ground and recognizing the large number of people involved in the project, which he noted has been two years in the making. He also recognized the four generations of the Mauldin family that have been involved in the bank, thanking them for creating a great place to work.
Singleton and Chief People Officer Penny Camp both expressed great faith in Vice President of Sales Kristen Strickland, who will be leading the West Madison location. Camp also acknowledged sales leader and retail team leader Cynthia Webster, who has been with the bank for over twenty years and is currently working out of the Nance Road location.
“What I really appreciate about our entire community is our entire area—we continue to work together to be successful so organizations have the ability to grow,” said Mayor Finley, thanking the bank for its investment in Madison.
Finley also praised Strickland, crediting her with the continued growth of the area thanks to her continued investment in the city. “In the end, I’ll say this: we love our community and it continues to get stronger thanks to folks like you. Quality businesses continue to invest here. We thank you for that, we’re very appreciative of that, and we look forward to breaking some ground.”
Following the groundbreaking ceremony, CEO Rick Wardlaw provided some final remarks, thanking those in attendance and those who have helped the bank continue to thrive.
“Thank you, and we’re looking forward to serving this community for the next 75 years,” Wardlaw concluded. w
Recent Labor Statistics Looking Up For Huntsville
At the national level, many key employment indicators in the U.S. look similar to before the COVID-19 pandemic, and robust employment growth plays a part in that. But the impact the coronavirus had on employment can’t be overstated.
Data from the U.S. Bureau of Labor Statistics shows that job losses in the spring of 2020 were comparable to those of the Great Depression. The unemployment rate hit almost 15% at that time; however, unlike prior recessions, the rebound was swift. Over 60% of jobs lost returned a year later, and total employment today is just a percentage point lower than the preCOVID peak.
According to new data from the U.S. Bureau of Labor Statistics, from March 2021 to March 2022 there were reductions in unemployment rates in 386 of America’s 389 metropolitan areas, and 108 of those areas had jobless rates under 3.0%. In March 2022, the national seasonally-adjusted unemployment rate was 3.6%, down 2.4 percentage points from the year prior. Similarly, data from the Economic Innovation Group shows that over half of all U.S. metros that experienced job losses during the coronavirus pandemic are on target for full recoveries in the next year.
On the state level, Nevada and California added the most jobs last year, with respective 9.1% and 6.4% increases, each showing a significant
By Gus Wintzell / Photos courtesy of U.S. Bureau of Labor Statistics
rise over the year prior. From March 2022 to March 2020, Nevada had a 0.1% increase in employment, while California had a 0.6% decrease during that two-year period.
This means that when compared to the start of the pandemic, employment numbers in these two states are relatively flat. Hawaii also had a dramatic rebound over the past year, with a 6.3% increase from March 2021 to 2022; however, its total employment numbers are still 8.5% below March 2020 levels.
Unlike the three states listed above, which were hit especially hard by declines in travel and tourism, Texas and Florida experienced notable and steady growth over both periods. Employment in each state grew by 5.7–5.9% over the past year, and both are about 2.5% above March 2020 figures. Although to a lesser extent, the same is the case for Georgia, which reported a 5.2% in-
crease in employment over the past year and a 2.2% increase over the past two years.
Similar trends hold at the local level with select cities in Nevada, California, Texas, Florida, and Georgia reporting robust employment growth. On the other hand, many locations in the South and Midwest have experienced little to no employment growth over the past year, and remain well below March 2020 numbers.
The data used in this analysis is from the U.S. Bureau of Labor Statistics Current Employment Statistics dataset. To determine the locations with the most employment growth, researchers at Filterbuy calculated the percentage change in employment between March 2021 and March 2022, considering only metropolitan areas with at least 100,000 residents. In the event of a tie, the location with the greater total change in employment since March of 2021 was ranked higher.
The analysis found that employment in the Huntsville metro area has grown 2.2% since last year— a 2.4% increase since the start of the pandemic. Here is a summary of the data for the Huntsville, AL metro area: • Percentage change in employment since 2021: +2.2% • Total change in employment since 2021: +5,600 • Percentage change in employment since 2020: +2.4% • Total change in employment since 2020: +6,000 • Current unemployment rate: 2.2%
For reference, here are the statistics for the entire United States: • Percentage change in employment since 2021: +4.5% • Total change in employment since 2021: +6,494,000 • Percentage change in employment since 2020: -0.1% • Total change in employment since 2020: -81,000 • Current unemployment rate: 3.6% w
Joe Davis Moves Closer to Completion
By guest writer Scott Harbour / Chapman Sisson Business Director
Since 1997 Chapman Sisson Architects has played a part in shaping the look and feel of Huntsville and being a part of the revitalization of a local landmark like Joe Davis Stadium is no different.
“The Joe Davis project is especially rewarding and a bucket list project for me. In 1985 my college thesis project was on a new stadium for Huntsville. 37 years later I have the honor of being a part of ‘The Joe’ project, which was built the same year I did my thesis and has brought my career full circle,” said Mike Chapman, Co-Founder and Principal of Chapman Sission Architects.
For 30 years “The Joe” was a hub for entertainment in Huntsville. Baseball, Football, Monster Trucks and Concerts all happened there. Big name athletes and entertainers such as Michael Jordan, Mark McGuire, Lynyrd Skynyrd, and The Beach Boys all visited Huntsville and played at “The Joe”. In the 30 plus years since Joe Davis Stadium opened its doors Huntsville has evolved and now it is time for “The Joe” to evolve so it can be a part of Huntsville’s future as well as its storied past.
Rob Mercer, Chapman Sisson Architect and Project Manager, is honored to be a part of this exciting project.
“When I come on the job site, occasionally I will find an old seat back or a page out of a past baseball program. It makes me think back to a time when this building played a significant role in the growth of this city, and the impact it had on the community (me included) for over 30 years,” said Mercer.
“It is really an honor being able to now play a role in this project and making it a place for future generations to enjoy. But it’s not just me. The general contractor, the local suppliers, and City leaders have all sat in these seats in years past and are now working together to bring Joe Davis Stadium back to life.”
As the Stadium prepares for its next act as a multi-use facility, which will host soccer, football, lacrosse and more, a search is underway to possibly bring a professional minor league soccer team to Huntsville.
According to a recent Gallup poll Soccer is the 4th largest sport in the U.S. behind mainstreams like football, basketball, and baseball. The recent announcement of a deal between Apple TV and Major League Soccer (MLS) to stream all MLS games starting in 2023 further highlights the sports growing popularity in the U.S., so having a professional presence in Huntsville makes sense.
Plans for the stadium extend beyond soccer and will provide another venue for area High School Football teams to play home games. Currently, The Joe Davis project is through the demolition phase and construction has started with steel beams being added to the top of the original seating along what was the 1st and 3rd base lines for what will be the new terrace seating. This L-shaped section of seating will become the south and west seating for a synthetic turf playing surface with infill for cooling and player safety.
The design and material for the playing surface complies with FIFA’s (Soccer’s World Governing Body) Performance Requirements. Meeting these requirements is an important step to attracting a professional soccer team and hosting tournaments as well as championship games both on the high school and collegiate level.
The design for Joe Davis also includes over 5,000 sq ft of locker room area for both home and visiting teams. Along with 1,200 sq ft dedicated for referees and game officials. Tunnel access for home and away teams will provide professional access to the field.
The fan experience includes over 4,600 square feet of concession space including a beer garden and gourmet kitchen facility. There will be seating for over 6,000 people with 7 field level private boxes, terraced turf seating in the north end and over 8,000 sq feet of open space on the upper terrace allowing for table seating. The experience will be enhanced with a 1,600 sq foot zero edge video scoreboard, engineered sound system and a LED field lighting system with full color animation capability.
The design also includes the infrastructure needed for broadcast. “The Joe” will contain multiple TV camera platforms with power and video connectivity. Those cameras platforms are supported by dedicated resources for television broadcast teams and trucks. This backbone infrastructure is capped off with a 3,000 sq foot press box space that includes a VIP Room and broadcast capabilities for tv and radio.
And, it’s not just Joe Davis that is getting attention. The facilities at John Hunt Park and Merrimack have been improved as well. These sports facilities are near Joe Davis Stadium, creating a central sports zone.
“Over the past few years, the city has really put a lot of resources into making John Hunt Park a comprehensive venue for several different sports and in doing so, creating a real asset for our community,” said Rob Mercer.
“Revitalizing Joe Davis Stadium makes Huntsville even more attractive to those considering relocating to this area. It is really rewarding to be a part of something that will create memories for so many people.” w
North Alabama’s Bank Independent Promotes Williams, Kline, Mangum and Sledge Colony Bank Enters Huntsville Market with Addition of Two Corporate Banking Professionals
Bank Independent, headquartered in Sheffield, Ala, is proud to announce the internal promotions of team members Kelly Williams, Ryan Kline, Kyle Mangum and Deanna Sledge.
“We’re proud to promote these team members who exhibit the qualities of a servant leader and help us fulfill our mission to make a positive difference and achieve our vision to be the bank of choice.,” says Rick Wardlaw, CEO of Bank Independent.
Kelley Williams has been named Learning & Development Officer. Kelley joined the bank in 2019 as a member of the Marketing Department within Interstate Billing Service. In 2020, she was promoted to Manager of the Learning & Development team. Kelley holds a bachelor’s degree in education from University of North Alabama along with a master’s degree in supervision and education administration from Marymount.
Ryan Kline has been named Network Operations Officer with the Information Technology Department. He joined the bank in 2021 as a Senior Network Manager. Ryan holds certification as a Certified Ethical Hacker, PentTest+, Security+ and in ITIL Foundations.
Kyle Mangum has been promoted to VP-Sales Officer at the Pine Street office in Florence, Ala. Kyle joined Bank Independent team in 2018. He most recently served as Sales Officer and in the Bank Independent Credit Administration department on the SBA Paycheck Protection Program blitz team. Kyle is a graduate of UNA with a bachelor’s degree in marketing, a graduate of Leadership Shoals and anticipates completing Alabama Banking School in August of 2022.
Deanna Sledge has been promoted to VP-Sales officer at Florence Square in Florence, Ala. Deanna joined the bank in 2008 as part of the Loan Operations team. She moved into the sales office as a Personal Banker in 2009 and promoted to Sales Specialist/Senior Relationship banker in 2018 followed by Sales Officer in 2019. Deanna is a graduate of the University of Alabama with a concentration in banking and financial services. She is a graduate of Leadership Shoals and the Alabama Banking School.
Colony Bank today announced that it has entered the Huntsville market with the addition of Barry Bryan as North Alabama Market Executive and Elizabeth Yanhko as Corporate Banking Administrative Assistant.
Commenting on the announcement, Mike Washburn, President of Corporate Banking, said, “We are excited to continue our growth strategy with the opening of our Huntsville office with two well-respected banking professionals of Barry’s and Elizabeth’s caliber. As the North Alabama Market Executive, Barry will be charged with leading our corporate group’s expansion in this vibrant community. He brings a wealth of banking experience and market knowledge that will be invaluable as we put down roots and build long-term relationships.”
Barry has been in the banking industry for over 25 years, most recently serving as Senior Vice President of Bank Independent. He earned his Bachelor of Business degree in Commerce and Business Administration from the University of Alabama, his Master of Business Administration from Troy University, and is a graduate of the Graduate School of Banking at Louisiana State University. \
Elizabeth most recently held the position of Commercial Lending Assistant with Bank Independent. She has also served as Commercial Real Estate and Corporate Law Legal Assistant at Harrison & Gammons, PC. She has resided in the Huntsville community for over thirty years and is an active member of the community through her involvement with Village of Promise. Elizabeth attends Willowbrook Baptist Church and enjoys hiking, traveling, and CrossFit.
“This expansion represents a major step in our effort to grow our Alabama footprint. As part of our strategic philosophy, we prefer to compete against larger regional and national banks. We believe our business model, resources, and unique community banking approach are key differentiating factors that set us apart and give us an opportunity to deliver greater value to businesses and commercial real estate investors in and around the Huntsville market,” said Heath Fountain, President and Chief Executive Officer.
