Alabama’s Mid-Year Market Shift

The Alabama Association of Realtors recently released its 2025 mid-year forecast, offering critical insights for landlords and real estate investors. If you own rental property or provide property management services in Mobile County or Baldwin County, understanding these trends will help you stay ahead in a shifting Gulf Coast market.

1. Interest Rates Settle into Predictable Range

Mortgage rates are expected to remain between 6.5% and 7% for the remainder of the year. While this is higher than the record lows of recent years, it represents a return to pre-pandemic norms. For investors looking to expand their rental portfolios in Mobile County or Baldwin County, this means greater certainty in financing. Strong property management practices will be essential to ensure monthly income supports higher loan costs.

2. Economic Uncertainty Requires Smart Planning

Political and global economic volatility could create mixed signals. For landlords and property managers along the Gulf Coast, this means keeping a close eye on local employment trends and tenant retention. A diversified rental strategy—combining long-term tenants with short-term rentals in vacation zones like Gulf Shores or Dauphin Island—can help mitigate localized disruptions.

3. Seasonal Trends Back in Play

Traditional seasonal cycles have returned. Rental demand peaks during spring and summer and slows in the fall and winter. Investors and property management companies in Baldwin County and Mobile County should schedule renovations or maintenance projects during off-peak seasons to avoid lost rental income during high-demand months.

4. Strong Labor Market Supports Rental Demand

Alabama’s workforce continues to grow, with a steady unemployment rate around 3.3%. In Mobile County, jobs in healthcare and shipping are driving demand for workforce housing. Meanwhile, Baldwin County benefits from growth in tourism, hospitality, and construction. Property owners should take advantage of this trend by offering updated, well-managed homes that cater to renters seeking stability and convenience.

5. Rising Inventory Offers Opportunities

Housing inventory is up nearly 25% compared to last year, giving investors more options when scouting for properties. However, new construction remains sluggish due to labor shortages and supply chain challenges. For those offering property management services or acquiring rental properties in either county, this means reduced competition and sustained demand for existing homes. Well-located, professionally managed properties are likely to remain in high demand for the foreseeable future.

Final Thoughts for Gulf Coast Landlords

As the second half of 2025 unfolds, the Gulf Coast rental market—especially in Mobile County and Baldwin County—remains ripe with opportunity. Stable employment, limited new construction, and growing inventory create ideal conditions for expanding rental portfolios. Whether you’re self-managing or working with a professional property management company, staying informed and responsive to market shifts will help you protect your investment and maximize returns.

For those ready to build long-term wealth through real estate in Alabama’s Gulf Coast, now is the time to take action.

👉 Read the full Alabama Realtors forecast here