Cost of Living in Homewood, AL

Population 27,697 · Alabama · Data vintage 2023

143
Cost Index
(100 = US avg)
Page updated: · Data vintage: 2023 ACS 5-Year
Sources: Census ACS·BLS·NOAA·EPA·Zillow · Methodology

The Homewood cost-of-living profile is closer to the US median than most headline-grabbing metros — typical homes around $502,000, rents near $1,457 a month. The labor market has been unusually tight, with unemployment around 2.1% — below most comparable cities in the state.

Geographically, Homewood sits roughly 5 miles south of Birmingham. Median home values run roughly 262% higher than Birmingham's $139,000.

Cost Overview

Housing 165
Rent 111

Scale: 100 = US national average. Green < 90, Red > 110.

About the Cost of Living in Homewood

The median home value in Homewood is $502,300 — 65% above the national median of $305,000. Median rent runs $1,457/month, 11% higher than the national median of $1,314/month. The median household income of $108,386/year is 45% higher than the US median of $74,580. The local unemployment rate is 2.1%, below the national average of 4.8%. Alabama's top state income tax rate is 5.0% and the combined sales tax is 9.2%. Overall, Homewood has a cost of living index of 143 versus the US average of 100, meaning it is 43% more expensive.

🏠 Housing

Median Home Value
$502,300
65% above avg
Zillow Home Value
$541,889
Zillow ZHVI
Median Rent
$1,457/mo
11% above avg
Zillow Rent
$1,477/mo
Zillow ZORI
Price-to-Rent Ratio
28.7x
Favors renting
Property Tax Rate
0.4%
Effective rate

HUD Fair Market Rents by Bedroom

Studio
$646
1 BR
$688
2 BR
$857
3 BR
$1,132
4 BR
$1,309
Owner-occupied 64.4%
Renter-occupied 35.6%

💰 Estimated Monthly Budget

Rent median rent
$1,457
Groceries national estimate
$400
Utilities local estimate
$88
Transportation local gas prices
$126
Estimated Total $2,071/mo

Estimates based on median data and national averages. Actual costs vary.

🛒 Food & Groceries

National BLS average prices (2023). Local prices may vary.

🥚
Eggs (dozen)
$0.548
🍞
White Bread (lb)
$1.912
🥩
Ground Beef (lb)
$5.61

🚗 Transportation

Avg Commute
19.1 min
29% below avg
Gas Price
$3.145/gal
0% below avg
Work From Home
11.9%

Commute Mode

Drove alone
77.3%
Carpooled
7.7%
Public transit
0.2%
Walked
2.5%
Bicycle
0.1%
Work from home
11.9%

Utilities

Electricity
$0.176/kWh
0% below avg

📋 Taxes

State Income Tax 5.0%
Total Sales Tax 9.2%
State rate 4.0%
Avg local rate 5.2%
Property Tax 0.4%

💼 Income & Employment

Median Household Income
$108,386
45% above avg
Per Capita Income
$51,880
Unemployment Rate
2.1%
56% below avg
Poverty Rate
8.1%
Labor Force Participation
68.1%

🎓 Education

Bachelor's degree+ 37.4%
Graduate degree 32.5%

👥 Demographics

Median Age 29.4
Male median age 29.4
Female median age 29.5

💨 Air Quality

EPA AQS 2023 — county-level monitoring data

Median AQI 61 — Moderate
20%
Good air days/yr
255
Max AQI recorded
312
PM2.5 days
53
Ozone days

Frequently Asked Questions

What is the cost of living in Homewood, AL?

Homewood has a cost index of 143 (100 = national average). It is 43% above the national average.

What is average rent in Homewood, AL?

The median gross rent in Homewood is $1,457 per month based on 2023 Census data.

What is the average home price in Homewood?

The median home value in Homewood is $502,300 according to Zillow and Census data.

What is the median income in Homewood?

The median household income in Homewood is $108,386 per year (2023 ACS 5-year estimates).

What is the sales tax in Homewood, AL?

The combined state and local sales tax rate in Homewood is 9.2%. The Alabama state income tax top rate is 5.0%.

Is Homewood, AL affordable?

Homewood is above average in cost of living, with an index of 143 — about 43% higher than the national average.

Homewood at a Glance

Population
27,697
Median Income
$108,386
Home Value
$502,300
Median Rent
$1,457/mo
Unemployment
2.1%
Sales Tax
9.2%
View all cities in Alabama →
🗺️ County data for Alabama

Explore county-level cost of living data

Similar Cost Cities

Cities in other states with comparable housing costs