Birmingham is the biggest metropolis in Alabama. Although it is a big city, its cost of living is relatively lower than other big cities around the United States. You could benefit from moving to The Magic City if you’re coming from an area with a high cost of living. When considering moving to Birmingham, be aware of the city’s costs so you can plan accordingly.
Average Cost of Living in Birmingham
Birmingham’s average cost of living is 8% lower than the national average. In 2022, the U.S. Bureau of Economic Analysis found that the median personal consumption expenditures (PCE) in Alabama equated to around $42,400, which is one of the lower PCEs compared with the rest of the country.
Alabama is one of the more affordable states to live in compared to others. Nationally, the median price for a single-family home is about $274,000. While housing prices differ based on neighborhoods, buying or renting in Birmingham is about 20% lower than the national average. The median listing price for homes in the city is about $168,000.
Factors Influencing the Cost of Living in Birmingham
Besides average PCE and housing costs in Birmingham, other factors also influence the cost of living, including:
- Utilities
- Groceries
- State income tax
- Sales tax
- Property tax
- Health care
Why Move to Birmingham?
Birmingham offers community and fun activities for individuals and families moving to the area. The lower cost of living compared to the national average can help you enjoy the city’s offerings. Some reasons why you may want to move to Birmingham include:
- Job market opportunities: The city has a diverse job market, with jobs available in many industries, such as health care, technology, finance, retail, education and manufacturing.
- Southern charm and culture: Living in the South, you’ll have plenty of opportunities to experience the state’s Southern charm, culture and history. Birmingham played a leading role in the iron and steel industry in the late 1800s and the Civil Rights Movement in the 1960s. Living in the city gives you more opportunities to learn about its history and culture through the various entertainment and educational establishments.
- Outdoor recreation: If you enjoy spending time outdoors year-round, you have plenty of chances to visit the parks and recreation areas. Birmingham has over 100 parks you can visit and spend time in when the weather is nice.
- Climate: Birmingham’s southern location allows residents to experience relatively moderate or warm weather all year. The climate often has humid summers and mild winters, making it an excellent place to live if you prefer warmer weather. During the summer, Alabama is also subject to tropical storms.
- Community and diversity: The city’s population is diverse, with various communities, colleges and universities, businesses and schools in the area. You can get involved in various activities or groups to meet new people.
Partner With Assurance Financial for Mortgage Assistance
Moving to a new city offers new perspectives and experiences. Birmingham boasts a rich culture and is an excellent place to live when you want a low cost of living. Assurance Financial is your trusted independent lender when you need to pre-qualify for a home loan. Contact us today to learn how we can assist you in your home-buying process.