Rankings/Tuscaloosa, AL

Tuscaloosa, AL

Below AverageTier 1CBSA 46220Compare

Risk Rank: #226 of 273Month: 2026-08Score change (12m):↓ -7

40score

Composite risk percentile vs 273 metros (higher = higher risk)

Executive Summary

Tuscaloosa's housing market shows below-average risk, ranking 226th of 273 metros. The market recently entered Hypersupply. The market shows signs of liquidity stress with elevated inventory. Significant oversupply — conditions increasingly favor buyers over sellers.

Tuscaloosa experienced a market correction from mid-2026 through mid-2026. Elevated inventory persists, suggesting the market hasn't fully normalized.

Inventory has surged +26% YoY with days on market up +14% — significant supply buildup indicating market stress.

Rent growth is roughly keeping pace with price appreciation, suggesting valuations are not stretched.

Cycle Phase

RecoveryExpansionHypersupplyRecession

1 month in current phase

Building activity may be outpacing demand absorption

Key Dynamics

Risk is primarily driven by migration and affordability, while price momentum provides the most support.

Top Drivers

Migrationp78

Net AGI migration (risk inverted)

Affordabilityp57

Mortgage payment / income

Permit Growthp56

YoY permit change

Market Signals

Inventory has surged +26% YoY with days on market up +14% — significant supply buildup indicating market stress.

Liquidity

Stress↓

Active Listings YoY

+26.3%p77

Days on Market YoY

+14.0%p74

Months in status1

Data through Aug 2026

Valuation

Balanced—

Rent vs. Price Growth

+5.5%p98

Months in status1

Data through Aug 2026Rent growth vs price growth (rent support). Note: Affordability and Valuation measure different structural dimensions and can diverge.

Factor Details

Lower riskHigher risk

Low RiskBelow AvgNeutralElevatedHigh Risk

Price MomentumLow Risk

-1.9%p0

12-month HPI change — higher = overheating

Permit GrowthNeutral

+3.5%p56

YoY permit change — higher = supply pressure

Permits per CapitaBelow Avg

2.23p23

Permits per 1,000 residents — higher = overbuilding risk

AffordabilityNeutral

0.30p57

Mortgage payment / income — higher = more burdened

EmploymentBelow Avg

+1.1%p24

12-month employment change (risk inverted)

MigrationElevated

-$31Kp78

Net AGI migration (risk inverted)

National Context

Credit Conditions

Credit Regime

Stable—

Oversupply with deteriorating transactions and no credit excuse. Supply-driven correction risk is elevated.

Bank Lending Standards

+0.0Normal

Rate Change (YoY)

+11 bpsNormal

Mortgage Risk Premium

+196 bpsElevated

Stable for 10 quartersData through 2026-Q3

Supply Pipeline

Supply Regime

Accumulating—

Supply pipeline is building up while credit remains available. New units are accumulating in the system — watch for delivery pressure in coming quarters.

Pipeline Ratio

0.89Elevated

Completion-Permit Divergence

-19.2 ppNormal

Accumulating for 6 quartersData through 2026-Q3

Local Signals

Metro Permit Activity

Permit Activity

Normal

YoY Permit Growth

+3.5%Within norm

Raw signal — not the composite percentile

Relative to 2016–2019 norms for this metro

Normal permit activity but demand has deteriorated significantly. The stress is from existing inventory and slowing absorption, not new construction.

Employment Concentration

Employment

Limited data

Largest SectorGovernment 39.4%

5 of 20 sectors disclosed · QCEW 2024 annual averages

Internal Structure

Tuscaloosa's 3 counties show moderate divergence — Tuscaloosa County carries the most risk (Elevated) while Pickens County anchors the lower end.

Moderate12.2Limited data

3 of 4 counties scored

Tuscaloosa, AL shows Moderate internal divergence — some counties diverge meaningfully from the metro picture. Tuscaloosa County contributes the most structural risk (Elevated, driven by permit growth), while Pickens County anchors the lower end (Below Average).

Within-metro factor percentiles (0 = lowest risk, 100 = highest risk)

County	Score ▼	Band	Pop %	Price	Permits	Afford
Tuscaloosa CountyRisk Driver	75	Elevated	87.6%	0	100	100
Greene CountyUnscored	50	Average	—	—	—	—
Hale County	38	Below Average	5.5%	50	0	50
Pickens CountyStabilizer	38	Below Average	6.9%	100	50	0

Score History

Month	Phase	Score	Price	Permits	Afford	Employ	Migr
2026-06	Ress	36	11	38	60	10	77
2025-12	Rec	51	69	29	64	43	77
2025-11	Hyp	42	31	34	62	35	65
2025-09	Hyp	40	41	34	62	14	65
2025-08	Exp	47	61	34	62	33	65
2025-07	Rec	47	79	34	62	16	65
2025-05	Rec	53	90	34	65	38	65
2025-04	Exp	60	85	34	65	82	65
2025-02	Exp	54	72	34	61	64	65
2024-12	Rec	59	92	34	65	72	65
2024-10	Rec	60	77	34	65	90	65
2024-09	Hyp	49	27	34	60	84	65
2024-08	Ress	42	34	34	60	36	65
2024-06	Ress	48	50	34	60	54	65
2024-04	Hyp	41	37	34	60	23	65
2024-02	Rec	42	30	34	58	39	65
2023-12	Hyp	44	58	34	62	15	65
2023-10	Hyp	44	62	34	62	12	65
2023-09	Exp	40	41	34	59	12	65
2023-08	Rec	40	37	34	59	15	65
2023-06	Rec	40	47	34	60	8	65
2023-04	Hyp	38	37	34	60	6	65
2023-02	Ress	39	35	34	62	10	65
2022-12	Ress	36	25	34	51	13	65
2022-11	Hyp	38	26	34	51	25	65
2022-10	Ress	35	27	34	50	9	65
2022-08	Ress	38	19	34	52	32	65
2022-07	Hyp	39	17	34	52	39	65
2022-05	Exp	42	16	34	53	59	65
2022-03	Exp	47	12	34	53	91	65
2022-02	Rec	47	12	34	53	89	65
2021-12	Rec	47	8	34	55	85	75
2021-09	Exp	49	11	34	59	88	75
2021-07	Exp	49	9	34	60	89	75
2021-06	Rec	48	11	34	61	80	75
2021-04	Rec	38	11	34	61	18	75
2021-03	Exp	50	14	34	64	85	75
2021-01	Exp	51	28	34	64	79	75
2020-10	Rec	58	55	34	69	88	74
2020-08	Rec	62	89	34	72	75	74
2020-06	Exp	63	93	34	74	76	74
2020-04	Exp	62	81	34	74	85	74
2020-03	Rec	44	39	34	70	20	74
2020-01	Rec	42	34	34	70	13	74
2019-10	Exp	36	24	34	67	7	58
2019-08	Exp	36	19	34	68	10	58
2019-06	Rec	38	36	34	70	1	58
2019-04	Rec	36	23	34	70	4	58
2019-03	Exp	38	23	34	71	13	58
2019-01	Exp	38	19	34	72	14	58

Data Vintages

Price (HPI)2026-Q2

Permits2026-08

Income2024

Employment2026-08

Migration2023