Home Values in Birmingham, Alabama — 2026 Market Report
Updated March 2026 | Seller's Market | +4.8% YoY
The median home value in Birmingham, Alabama is $115,000 as of March 2026, which is below the national median of $400,000. Home values in Birmingham have increased by 4.8% over the past year and 26.4% over the last five years. With a population of 200,733 and a median household income of $37,988, the price-to-income ratio stands at 3.0x, making Birmingham affordable for the average household.
Birmingham Housing Market Conditions
| Metric | Birmingham | National Avg |
|---|---|---|
| Median Home Value | $115,000 | $400,000 |
| YoY Appreciation | +4.8% | +3.8% |
| 5-Year Appreciation | +26.4% | +22.4% |
| Price per Sq Ft | $27 | $222 |
| Days on Market | 53 days | 45 days |
| Months of Supply | 2.1 | 3.5 |
| List-to-Sale Ratio | 99.7% | 98.5% |
| Monthly Homes Sold | 81 | — |
| Foreclosure Rate | 0.2% | 0.3% |
Home Value Trends in Birmingham
A homeowner who purchased at the median price of $90,981 five years ago in Birmingham would have gained approximately $24,019 in equity, representing a 26.4% return on investment. Over the past year alone, the typical homeowner gained $5,267 in home equity.
Affordability in Birmingham, AL
With a median household income of $37,988 and a median home price of $115,000, the price-to-income ratio in Birmingham is 3.0x. A ratio below 3x is generally considered affordable, while above 5x indicates significant affordability challenges. The average monthly rent of $896 compared to estimated monthly ownership costs of $585 gives a rent-vs-buy ratio of 0.65. In Birmingham, buying is currently competitive with renting when factoring in equity accumulation.
Property Taxes in Birmingham
The effective property tax rate in Alabama is 0.41%. On a home valued at $115,000, the estimated annual property tax bill is $472, or approximately $39/month. Property taxes are an important factor in the total cost of homeownership and can significantly impact affordability. The cost of living index in Birmingham is 85.5 (100 = national average), indicating living costs are below the national average.
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Open Mortgage CalculatorFrequently Asked Questions
What is the median home value in Birmingham, AL?
The median home value in Birmingham, Alabama is $115,000 as of March 2026. Home values have changed +4.8% over the past year, with a 5-year appreciation of 26.4%.
Is Birmingham a buyer's or seller's market?
Birmingham is currently a seller's market with 2.1 months of housing supply. Homes spend an average of 53 days on market, and the list-to-sale price ratio is 99.7%. Low inventory gives sellers an advantage.
Are home values going up in Birmingham?
Yes, home values in Birmingham have increased by 4.8% over the past year. The 5-year appreciation rate is 26.4%, meaning a home worth $90,981 five years ago is now worth $115,000.
Is it better to rent or buy in Birmingham?
The average monthly rent in Birmingham is $896, while estimated monthly homeownership costs are approximately $585. The price-to-rent ratio is 10.7. Based on current conditions, buying may be more cost-effective than renting in this market.
Home Values in Other Alabama Cities
Related Resources
Disclaimer: Home value data for Birmingham, Alabama is based on publicly available market data and estimates. Actual home values may vary based on property condition, location within the city, and current market conditions. Data is updated regularly but may not reflect the most recent transactions. Last updated: March 2026.