In short
The median value of owner-occupied homes is $233,300 in Alabama and $189,800 in the city of Birmingham, against $360,600 nationwide (Census ACS 2024). On the FHFA index, Alabama prices up 2.8% and Birmingham-area prices up 0.6% from Q2 2025 to Q2 2026.
What it costs: median value in 2024
| Area | Median value, 2024 | Margin of error (90%) |
|---|---|---|
| United States | $360,600 | ±$618 |
| Alabama | $233,300 | ±$2,461 |
| Birmingham metro area | $263,900 | ±$7,253 |
| Jefferson County | $263,100 | ±$9,874 |
| City of Birmingham | $189,800 | ±$10,282 |
Source: Census ACS 2024, table B25077; owners’ own estimates, not sale prices.
Three points stand out:
- The Alabama median is $127,300 below the national median.
- The city of Birmingham sits $43,500 below the Alabama median and $74,100 below the Birmingham metro median. Homes outside the city limits pull the county and metro figures up.
- The margin of error for the city (±$10,282) is much wider than for the state, because the sample is smaller. The true city median is very likely between about $179,500 and $200,100.
How prices have moved: the FHFA index
| Area | 1-year change (Q2 2025 to Q2 2026) | 5-year change (Q2 2021 to Q2 2026) |
|---|---|---|
| United States | +2.1% | +33.4% |
| Alabama | +2.8% | +35.6% |
| Birmingham metro area | +0.6% | +31.9% |
Source: FHFA HPI, purchase-only, Q2 2026 (release of August 25, 2026); changes by Payotte.
Alabama prices rose faster than the national index over the past year and over five years. The Birmingham metro area gained slightly less than the country over five years and was almost flat over the last twelve months.
A worked example
A Birmingham-area home worth $250,000 in Q2 2021 would be about $329,800 in Q2 2026 on the Birmingham metro index index (+31.9%); over the last year alone it would gain about $2,100 (+0.6%). One home can differ widely.
How to use these figures when buying
Closing costs come on top: our Alabama closing costs guide covers who pays what, and buying a home in Birmingham applies these numbers to the city. Also see the Alabama first-time buyer programs, and every buyer should read about natural hazards and insurance in Alabama.
Method and dataset
ACS median value. ACS 1-Year 2024, table B25077. Geographies: United States (0100000US), Alabama (0400000US01), Birmingham, AL Metro Area (310M700US13820), Jefferson County (0500000US01073), Birmingham city (1600000US0107000). Read through the data.census.gov API on October 13, 2026. The definition of value comes from the ACS 2024 Subject Definitions.
FHFA index. FHFA HPI (purchase-only, seasonally adjusted), state series (Alabama), metro series (Birmingham, AL, CBSA 13820) and U.S. series. Index values used: Alabama 365.61 (Q2 2025), 277.05 (Q2 2021) and 375.76 (Q2 2026); Birmingham 394.20, 300.76 and 396.71; United States 426.58, 326.58 and 435.69.
Frequently asked questions
What is the median home value in Alabama?
Alabama’s 2024 ACS median home value is $233,300 (±$2,461), against $360,600 for the nation: owners’ own estimates, not sale prices.
What is the median home value in Birmingham?
For the city of Birmingham, the 2024 ACS median value is $189,800 (±$10,282). Jefferson County is at $263,100 and the Birmingham metro area at $263,900.
Are Alabama home prices going up or down?
FHFA’s purchase-only index shows Alabama prices rose 2.8% over the year to Q2 2026, and the Birmingham metro area rose 0.6%. Over five years, they rose 35.6% and 31.9%.
How Alabama compares with the other States
With a median of $233,300, Alabama is 43rd of 50, in the bottom ten, and sits 35% under the national $360,600.
The States closest in median value are Kansas ($238,700) and Iowa ($227,300). The range runs from $170,800 in West Virginia to $875,900 in Hawaii; Alabama is $106,200 below the middle of that ranking (Wyoming).
On the FHFA index, Alabama prices rose 2.8% over the year to the second quarter of 2026, which places the State 25th of 50, 0.7 points ahead of the national +2.1%. Over five years the gain is +35.6% (30th of 50; nation +33.4%).
Alabama sits in the middle of the pack on at least one of the two measures: 43rd for the level, 25th for the one-year change.
Over five years, Alabama's +35.6% annualises to +6.3% a year (nation +5.9%). The latest year (+2.8%) is 3.5 points under that average, a slower pace than the five-year average.
Birmingham, the main city, has a median of $189,800, 47th of the 49 main cities Payotte covers. That is 19% below the Alabama median, a discount that ranks 42nd of 49.
The one-year FHFA change runs from -1.2% in New Mexico to +8.3% in Alaska. Alabama (+2.8%) is 5.5 points below the top and 4 above the bottom; Nevada (+2.8%) and Montana (+2.8%) are the nearest to it.
For scale, 20% of the Alabama median is $46,660, against $72,120 at the national median.
Compare with the other states: Median home price by state.
More Alabama guides
- Closing costs in Alabama: what buyers and sellers pay
- Alabama deed tax and mortgage tax: rates and who pays
- Alabama property tax: how it works and the homestead exemption
- Seller disclosure in Alabama: what a seller must tell
- Do you need a real estate attorney to close in Alabama?
- Foreclosure process in Alabama: steps, timeline, redemption
- First-time home buyer programs in Alabama and Birmingham
- How to verify a real estate license in Alabama
- Natural hazards and home insurance in Alabama
Sources
- Census Bureau, ACS 1-Year 2024, table B25077 (consulted October 13, 2026)
- Census Bureau, 2025 ACS release schedule (consulted October 13, 2026)
- American Community Survey 2024 Subject Definitions (U.S. Census Bureau) (consulted October 13, 2026)
- FHFA news release, August 25, 2026 (consulted October 13, 2026)
- FHFA HPI datasets (quarterly, purchase-only) (consulted October 13, 2026)