Homewood, Alabama

Cost of Living in Homewood

Detailed cost of living data — sourced from authoritative datasets and normalized for direct comparison.

Cost of Living in Homewood, Alabama

The cost of living in Homewood presents a mixed picture when compared to national averages. While the median household income of $94,485 in 2024 is notably higher than the national average, housing costs, particularly for home purchases, tend to be above the national median. For instance, the median sale price for homes in Homewood was $540,833 in March 2026. However, the average rent of $1,596 in April 2026 is actually lower than the national average, which can offer some relief for renters. Overall, the higher income levels in Homewood help to offset the elevated housing prices, contributing to a balanced, albeit slightly above average, cost of living.

Monthly Costs

Average Rent
$1,596
Groceries
$450
Utilities
$180
Transport
$150
Healthcare
$250
Cost Index
105

Detailed Breakdown

Gym membership (monthly)
$45.00
Entertainment
Cinema ticket
$14.00
Entertainment
Restaurant meal (mid-range)
$22.00
Food
Monthly groceries
$450.00
Food
Doctor visit (without insurance)
$150.00
Healthcare
1BR Apartment (city centre)
$1,400.00
Housing
2BR Apartment (city centre)
$1,800.00
Housing
Home purchase (per sq ft)
$300.00
Housing
Monthly transit pass
$50.00
Transport
Gas per gallon (USD)
$3.70
Transport
Electricity + internet (monthly)
$180.00
Utilities

About Homewood, Alabama

Homewood, Alabama, is a vibrant and desirable suburb located just south of downtown Birmingham, known for its tree-lined streets, strong community feel, and excellent amenities. The city prides itself on a blend of historic charm and modern conveniences, attracting a diverse population of families and young professionals. Its appeal stems from highly-rated public schools, a thriving local business scene, and abundant green spaces, making it a sought-after residential area in the greater Birmingham metropolitan area. Many residents are drawn to Homewood for its quality of life, convenient location, and active community engagement.

About Alabama

Alabama, a Southeastern U.S. state, is characterized by its rich history, diverse landscapes ranging from the Appalachian foothills to the Gulf Coast, and a strong sense of Southern hospitality. The state's economy is diverse, with major industries including automotive manufacturing, aerospace, advanced manufacturing, technology, bioscience, and agriculture. Living in Alabama generally offers an affordable lifestyle, with the cost of living, particularly housing, being significantly lower than the national average. The climate is humid subtropical, featuring long, hot summers and mild winters with ample precipitation throughout the year, allowing for year-round outdoor activities.