Alabama housing market
Data through September 2026 · updated 2026-11-07 · free, from Zillow, Realtor.com, the Census Bureau and other public sources
Typical home value$238,614+1.9% YoY · prices are rising
Market right nowBalanced marketMore homes for sale than last year, 17% have cut their price
Income needed to buy, per year$51,727About 0.8× the local median income ($66,704): affordable for a typical household
Days on market73 daysAbout the same pace as a year ago
Next 12 months+1.8%Zillow expects prices to rise slightly
The typical home in Alabama is worth $238,614, up 1.9% from a year ago. That is slightly above what local incomes have historically supported: fair value is about $236,928, so the area is 0.7% overvalued. It is a balanced market: homes take about 73 days to sell, listings are up 9% from a year ago, 17% of listings have had a price cut. Zillow expects prices to rise about 1.8% over the next year. A household needs about $51,727 a year to afford the typical home here at today's 7.18% mortgage rate (20% down, payment at 30% of income); the median household earns $66,704. In the latest IRS figures, 16,358 more people moved in than out.
Home value over time
Solid: typical home value · dashed: fair value (household income × the 20-year average price-to-income ratio). Sources: FHFA, Zillow, U.S. Census Bureau.
Prices and affordability
| Typical home value | $238,614 |
| Change in 1 year | +1.9% |
| Overvalued % | +0.7% |
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| Fair home value | $236,928 |
| Change in 5 years | +16.8% |
| Zillow forecast, next 12 months | +1.8% |
| Home value to income | 3.6× |
| Monthly mortgage payment (20% down) | $1,293 |
| Income needed to afford it | $51,727 |
| Property tax rate | 0.38% |
Rent and investing
| HUD Fair Market Rent, 2 bedrooms | $1,173 |
Market activity
| Listings vs a year ago | +9.0% |
| Days on market | 73 |
| Listings with a price cut | 17.4% |
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| Homes for sale | 22,750 |
| Pending sales per 100 listings | 31 |
| Asking price per sq ft | $165 |
People and jobs
| Median household income | $66,704 |
| Population change (1 year) | +0.6% |
| Unemployment rate | 4.7% |
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| Population | 5,193,088 |
| Income adjusted for cost of living | $75,117 |
| Net moves in (IRS) | +16,358 |
| Cost of living (US = 100) | 88.8 |
Schools, risk and environment
| FEMA hazard risk score (0 to 100) | 82.9 |
| Unhealthy air days a year | 0 |
| Flood risk score | 83.4 |
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| Wildfire risk score | 62.4 |
| Walkability (1 to 20) | 6.6 |
| Road, rail and air noise | 54 dB |
Questions people ask
- Is Alabama overvalued?
- Home prices in Alabama are slightly above what local incomes have historically supported: fair value is about $236,928, so the area is 0.7% overvalued.
- Is Alabama a buyer's or seller's market?
- Alabama is a balanced market: homes take about 73 days to sell, listings are up 9% from a year ago, 17% of listings have had a price cut.
- Are home prices going down in Alabama?
- Home values in Alabama are up 1.9% over the last year. Zillow's forecast for the next 12 months is +1.8%.
- How much do you need to earn to buy a home in Alabama?
- A household needs about $51,727 a year to afford the typical home in Alabama at today's 7.18% mortgage rate (20% down, payment at 30% of income); the median household earns $66,704.
Metro areas
Birmingham, ALHuntsville, ALMobile, ALMontgomery, ALColumbus, GA-ALTuscaloosa, ALDaphne-Fairhope-Foley, ALAuburn-Opelika, ALDecatur, ALFlorence-Muscle Shoals, ALDothan, ALAnniston-Oxford, ALGadsden, AL
Counties
Autauga CountyBaldwin CountyBarbour CountyBibb CountyBlount CountyBullock CountyButler CountyCalhoun CountyChambers CountyCherokee CountyChilton CountyChoctaw CountyClarke CountyClay CountyCleburne CountyCoffee CountyColbert CountyConecuh CountyCoosa CountyCovington CountyCrenshaw CountyCullman CountyDale CountyDallas CountyDe Kalb CountyElmore CountyEscambia CountyEtowah CountyFayette CountyFranklin CountyGeneva CountyGreene CountyHale CountyHenry CountyHouston CountyJackson CountyJefferson CountyLamar CountyLauderdale CountyLawrence CountyLee CountyLimestone CountyLowndes CountyMacon CountyMadison CountyMarengo CountyMarion CountyMarshall CountyMobile CountyMonroe CountyMontgomery CountyMorgan CountyPerry CountyPickens CountyPike CountyRandolph CountyRussell CountySaint Clair CountyShelby CountySumter CountyTalladega CountyTallapoosa CountyTuscaloosa CountyWalker CountyWashington CountyWilcox CountyWinston County