| Index | Birmingham | Alabama | National |
| Cost of living | 88 | 89 | 100 |
| Groceries | 98 | 96 | 100 |
| Health care | 99 | 95 | 100 |
| Housing | 65 | 74 | 100 |
| Transportation | 98 | 95 | 100 |
| Utilities | 95 | 97 | 100 |
| Lifestyle & Entertainment | 96 | 94 | 100 |
| Household Items | 96 | 96 | 100 |
| Education & Childcare | 96 | 93 | 100 |
Getting a feel for the cost of living in Birmingham is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Birmingham is 88, which is 12% lower than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.
The most insightful perspective on a city comes from its residents. We recently surveyed 17 locals to gauge their perception of the cost of living in Birmingham. The feedback revealed that 47% of respondents found the cost of living to be reasonable, with prices on the decline, while 53% regarded it as notably expensive with prices that continue to rise.
Is Birmingham affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Birmingham, the median home price is 45.6% lower than the national average and monthly rent prices are 8.7% lower than the typical rates. Additionally, the median income levels play a role in affordability, with Birmingham boasting a median household income of $58,287, 28.3% lower than the national average.
Housing: When everyone's vying for homes in popular areas, it drives up property prices and rents, making the overall cost of living surge. On the flip side, in less sought-after locales, where housing demand is low, prices tend to dip, resulting in a more economical cost of living. In Birmingham, the housing index comes in at 34.5% lower than the national average.
Subsidies: Certain cities or states may institute government subsidies or assistance programs designed to alleviate the financial burdens associated with the cost of living for their residents. These programs encompass a variety of support mechanisms, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farm subsidies. Areas that provide fewer subsidies may see an uptick in their overall cost of living.
Healthcare: Healthcare costs and insurance premiums can fluctuate greatly based on the city or state. Access to healthcare facilities, out-of-pocket expenses for doctor\’s visits, dentist costs, medication costs and specialized care costs can all impact the cost of living. In Birmingham, the healthcare costs are 1.4% lower than the national average.
The Birmingham cost of living estimates above use a normalized U.S. average of 100 as the baseline for comparison. Housing values incorporate local home price and rental information from the U.S. Census, while all other estimates are AI-assisted and modeled using expected everyday expenses, local market trends, climate, and transportation-related cost pressures. The results are intended for practical city-to-city comparisons.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $78,824 | $6,569 | $1,839 | $2,365 |
| Renters | $45,888 | $3,824 | $1,071 | $1,377 |
| State | General Sales Tax | With Max Surtax |
| Alabama | 4% | 13.5% |
| State | Income Tax (Low) | Income Tax (High) |
| Alabama | 2% | 5% |
| City | Population | Cost of Living Index | National Avg. |
| Cardiff, AL | 48 | 76 | 24.0% |
| Mount Olive CDP (Coosa County), AL | 284 | 79 | 20.7% |
| Edgewater, AL | 852 | 82 | 18.5% |
| Brighton, AL | 2,939 | 81 | 18.8% |
| Mulga, AL | 786 | 83 | 17.1% |
| Birmingham, AL | 216,515 | 88 | 12.4% |
| City | Population | Cost of Living Index | National Avg. |
| Moreno Valley, CA | 215,612 | 137 | 37.1% |
| Fayetteville, NC | 215,564 | 96 | 4.4% |
| Richmond Hill, ON | 215,407 | n/a | |
| Santa Clarita, CA | 218,105 | 165 | 65.4% |
| Oxnard, CA | 214,920 | 154 | 53.6% |
| Birmingham, AL | 216,515 | 88 | 12.4% |
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