Alabama is ranked as the 20th-best state in the U.S. in terms of economic upliftment. The rankings are based on affordability, healthcare, and overall social structure. Also, the housing costs in the state are 36% cheaper than the national average.
Apart from affordable living, the Cotton State offers excellent job opportunities. In 2023, the state created 100,702 new jobs. Moreover, 8 out of the 11 major cities in Alabama score A+ in the air quality metrics.
3 Reasons to Live in Alabama 🌴
- Flourishing Job Market: By 2030, job markets in Alabama will rise by 8%. The state is home to big corporates like Vulcan Materials, Regions Financial, Alfa.
- Affordable Healthcare: The cost of healthcare services such as body check-ups and dentistry in Alabama is 16% lower than the national average.
- Economic Stability: Alabama is ranked as the 20th best fiscally stable state in the country. Aerospace, finance, and healthcare are the growing sectors.
7 Best Places to Live in Alabama
| # | City | Population | Median Home Price | Monthly Expenses | Unemployment Rate | Community Well-Being Score |
|---|---|---|---|---|---|---|
| 1. | Gadsden | 15,621 | $84,686 | $6,917 | 1.1% | 51/100 |
| 2. | Montgomery | 15,621 | $136,482 | $7,681 | 3.00% | 56/100 |
| 3. | Talladega | 15,621 | $139,432 | $6,721 | 2.8% | 44/100 |
| 4. | Bessemer | 25,615 | $113,531 | $8,395 | 4.30% | 62/100 |
| 5. | Anniston | 21,157 | $121,622 | $7,095 | 1.20% | 51/100 |
| 6. | Birmingham | 197,575 | $126,511 | $8,468 | 3.20% | 63/100 |
| 7. | Ozark | 14,313 | $133,801 | $6,761 | 3.1% | 46/100 |
1. Gadsden
| Home Value | ⬇️ 4.6% |
| Median Income | $20,518 |
| Monthly Expenses | $6,917 |
| Unemployment Rate | 1.1% |
Gadsden is a perfect option for those moving on a budget. The median home price in the city is $84,686, down by 5.7% over the past 12 months. Moreover, the cost of living in the city is 15% lower than the national average.
The City of Champions is ideal for young professionals. The job market in the city is projected to grow by 29.3% in the coming decade. Also, the city is known for its top-rated education system. The Gadsden Public School District is one of the largest in Alabama.
» Homes for Sale in Gadsden, AL: Find your dream home in this beautiful city.
2. Montgomery
| Home Value | ⬆️ 2.8% |
| Median Income | $26,465 |
| Monthly Expenses | $7,681 |
| Unemployment Rate | 3.00% |
The median home price in Montgomery is $136,482. The city’s cost of living is 13% less than the national average. Also, Montgomery has a booming job market, with a monthly average salary of $5,433.
The Gump City has a booming job market, it is home to big corporates like Meta and Salesforce Inc. Over the years, Montgomery’s economy has flourished in sectors like health sciences, real estate, advanced manufacturing, and retail marketing.
» Homes for Sale in Montgomery, AL: View the best properties in MGM online.
3. Talladega
| Home Value | ⬆️ 2.9% |
| Median Income | $19,530 |
| Monthly Expenses | $6,721 |
| Unemployment Rate | 2.8% |
The median home price in Talladega is $139,432 The cost of living in the city is 3.0% lower than the state average. Moreover, it has a stable job market with an unemployment rate of 2.8%, which is less than the national average.
The Dega City created 15,000 new jobs in 2023. Honda of America, UPS, Georgia-Pacific, and Shocco Springs are the major employers. Also, the city scores an A in the air quality metrics.
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4. Bessemer
| Home Value | ⬇️ 3.8% |
| Median Income | $19,674 |
| Monthly Expenses | $8,395 |
| Unemployment Rate | 4.30% |
With a median home price of $113,531, Bessemer is one of Alabama’s best places to live. The average rent for a 950 sq. ft. apartment is $903. Also, the city is home to the prestigious Samford University, which is ideal for higher education.
The cost of living in Marvel City is 9% lower than the national average. Moreover, the city’s job market is projected to grow by 7.06% in the next two years. Woodcraft, Blox LLC Deshazo, FANUC America, and Logista are some of the major employers.
» Homes for Sale in Bessemer, AL: View the best luxurious properties for sale in Marvel City.
5. Anniston
| Home Value | ⬇️ 2.6% |
| Median Income | $22,997 |
| Monthly Expenses | $7,095 |
| Unemployment Rate | 1.20% |
The median home price in Anniston is $121,622, which is very affordable. The cost of living in the city is 17% lower than the national average. Moreover, the city has a great educational setup. It’s home to the prestigious Jacksonville University and the Gadsden State University.
The Model City is home to big corporations like Southern State Bank, Werner Co, BDO USA, and Leidos. The city’s unemployment rate is 1.20%, decreasing steadily.
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6. Birmingham
| Home Value | ⬇️ 4.9% |
| Median Income | $23,508 |
| Monthly Expenses | $8,468 |
| Unemployment Rate | 3.20% |
The median home price in Birmingham is $126,511, which is quite affordable. The home prices in the city have gone down by 6.0% in 2023. Moreover, the cost of living is 8% lower than the national average.
The Magic City has a booming job market. In 2023, it was ranked the 4th best metro job market in the U.S. Over the years, the city’s economy has flourished in sectors like health sciences, manufacturing, and retail marketing.
» Homes for Sale in Birmingham, AL: View thousands of properties for sale in the Magic City.
7. Ozark
| Home Value | ⬆️ 4.3% |
| Median Income | $22,693 |
| Monthly Expenses | $6,761 |
| Unemployment Rate | 3.1% |
The median home price in Ozark is $133,801. The cost of living in the city is 11% lower than the national average. Ozark is ideal for job seekers, with over 4,800 employees.
The Wiregrass City’s job market is projected to grow by 30.4% in the coming decade. Ozark is home to big corporate giants like Fort Rucker, C Spire, Textron, and Credit Central INC.
» Homes for Sale in Ozark, AL: Find the best properties in Ozark.
Best Places to Live in Alabama for Young Adults
Here are the best places to live in Alabama for young adults:
- Huntsville: The annual average salary in Huntsville is $63,823. The job market is projected to increase by 40.09% in the next ten years, higher than the national projection.
- Blaine: The average salary in the city is $47,794. The job market in Blaine is projected to grow by 27.2% over the next decade.
Bottom Line
Alabama is one the best places to live in the US due to its thriving job market and low cost of living. Other things that contribute are its excellent education system and vibrant city life.
The Cotton State’s population is 5.1 million with an average annual growth of 0.7%. Moreover, the state is ranked 20th in terms of the best fiscally stable states in the country.
In some cities, the median home price is around $84,686, whereas in cities like Talladega, it can go up to $139,432. So, you must do your research before you move to Alabama. To start your home search, browse properties online.
» Free Home Value Estimator: Get an estimate of property values with Alabama’s most accurate home value estimator.
Browse Homes For Sale in Alabama by Price and Type
Research Methodology
We considered different regions to rank the best places in Alabama. Comparison criteria for the best cities to live in Alabama and the information sources are as follows:
- Population: Alabama Demographics Report [1]
- Median Home Price: Zillow[2] and Redfin[3]
- Median Household Income: United States Census Bureau[4]
- Monthly Expenses: Economic Policy Institute[5]
- Unemployment Rate: US Bureau of Labor Statistics[6]
- Community Well-Being Score: Community Well-Being Index by Sharecare[7]
Additionally, we have listed the good cities to live in Alabama for varying demographics. These include the best places to live for families, young adults, retirees, and working professionals.
Frequently Asked Questions
Which is the best place to live in Alabama?
Gadsden is the best place to live in Alabama. The city's cost of living is low and has a flourishing job market.
Which is the best place to live in Alabama for retirees?
Talladega is the best place to live in Alabama for retirees. The city has a got excellent connectivity and great climate.
Which is the cheapest place to live in Alabama?
Anniston is the cheapest place to live in Alabama. The home prices and cost of living in the city are one of the lowest in the state.
