Alabama’s population had the 12th highest growth rate in the United States between 2018 and 2023. Alabama has a strong buyer’s market for real estate, with a 13.9% increase in active listings and a $15,534 decrease in the median sales price between Sept. 2022 and Sept. 2023. If you’re interested in moving to or within the state, now is a great time to explore the best places to live in Alabama.

Selection criteria

Choosing the best places to live in Alabama is a challenge because this state offers a wealth of diverse options. You’ll find bustling tech-forward cities, charming eco-minded suburbs, and everything in between. The cities highlighted here have a strong sense of community, an abundance of amenities, and competitive prices for all that’s on hand. If you’re looking for the best places to live in Alabama, these destinations are a good place to start.

1. Huntsville

Huntsville played a major role in the 1960s Space Race and now has the most educated population in Alabama. Between the U.S. Army’s Redstone Arsenal and NASA, the area has the second-largest technology and research park in the United States, with a thriving job market for engineers. The U.S. Space & Rocket Center is one of the city’s prime highlights. The Huntsville Botanical Garden and Huntsville Museum of Art also offer ample delights.

Huntsville is a popular pick for families, with a cost of living 5% below the national Average. Huntsville’s schools are highly rated by GreatSchools, with three elementary schools, Mountain Gap Middle School, and New Century Technology High School receiving a 10/10. The city has over 65 parks covering over 3,000 acres and active athletic leagues for children and adults alike. 

Rental rates for a one-bedroom apartment in Huntsville have increased 16% year-over-year to a median rent of $869. You can expect to pay around $1,085 for a two-bedroom unit. In Huntsville, 43% of households rent, while 57% own their homes.

2. Auburn

Home to Auburn University, Auburn is largely a college town, but it has features to appeal to residents of every age. Families will find some of the best elementary, middle, and high schools in the country here. Retirees can hit the links on the 54 holes of the Robert Trent Jones Grand National golf course year-round. With more than 33 parks and 66 miles of trails, there are plenty of outdoor highlights. Dining in Auburn is outstanding, with options such as The Amsterdam Cafe and The Hound offering gourmet dishes. 

The crime rate in Auburn is 40% lower than the national average. The cost of living is just 2% higher than the national average, though groceries, healthcare, transportation, and goods and services are 3% lower than the average cost in the United States. As of November 2023, the average rent for a one-bedroom apartment had increased 48% year-over-year, though this only brings it to $1,000. You can get a two-bedroom apartment for around $1,350. Renter-occupied homes account for 52% of households in Auburn.

3. Madison

Within the Huntsville metropolitan area, Madison offers easy access to urban highlights while providing a more suburban feel. Downtown Madison features charming Victorian, Colonial, and Craftsman architecture housing boutique shopping, antique stores, and local dining establishments. The Main Street Cafe is a local favorite, offering surf and turf delights. You’ll enjoy a distinctive sense of community here, with events such as the annual Madison Street Festival bringing residents together year after year.

Madison is popular among young professionals for its diverse job market, with thriving biotechnology, aerospace, and defense industries bleeding over from Huntsville. Families enjoy access to an outstanding school system that’s among the best in the state. Madison’s ample amenities do come at a price, with a cost of living that’s 3% higher than the national average and 15% higher than the state average.

The average rent for a one-bedroom apartment in Madison has remained steady over the last year, staying at $1,170 as of November 2023. The median rent for a two-bedroom apartment is $1,327. Just 27% of residents in Madison rent. 

4. Birmingham

Brimming with arts and culture, Birmingham is a great choice for those who want plenty of entertainment at their fingertips. The Birmingham Museum of Art, Birmingham Botanical Gardens, and Barber Vintage Motorsports Museum help ensure you always have something to do.

The Birmingham Railroad Park spans 19 acres and features playgrounds, walking trails, outdoor gym equipment, a skate area, and convenient eats at Michael’s Restaurant at The Boxcar. The park regularly hosts concerts, cultural events, and community activities, earning itself the nickname Birmingham’s Living Room. If you want even more green space, Red Mountain Park has 1,500 acres to offer, with three treehouses, an off-leash dog park, and 16 miles of trails.

Birmingham is surprisingly affordable, with an average cost of living that’s 3% lower than the state average and 15% below the national average. Housing is especially affordable, coming in 15% under the average for Alabama.

In Birmingham, 54% of households rent and 46% own, and plenty of diverse housing options exist. You can enjoy the urban environment of the city or head to some of the popular suburbs, such as Mountain Brook and Homewood. The rental rate for a one-bedroom apartment in Birmingham increased by 15% between November 2022 and November 2023 to $1,260. A two-bedroom unit costs around $1,263.

5. Montgomery

The capital city of Alabama, Montgomery played a major role in the civil rights movement. You can visit the Rosa Parks Museum, Freedom Rides Museum, Legacy Museum, and the National Memorial for Peace and Justice. Montgomery has always been a city for innovation, hosting the first citywide electric streetcar, open-heart surgery in America, and civilian flight school. One of the city’s latest innovations is EAT South, which is part park and part outdoor classroom, supplying Montgomery residents with garden-based education and a source of local produce. 

Montgomery has a highly rated school system and an 81% graduation rate, 7% lower than the state average. The city boasts several family-friendly attractions, including the Montgomery Zoo, Old Alabama Town, W.A. Gayle Planetarium, and The MOOseum. The cost of living is another perk, coming in 14% lower than the national average. Between November 2022 and November 2023, the average rent for a one-bedroom apartment in Montgomery increased 4% to $945. The median rent for a two-bedroom unit is $950. Forty-six percent of occupied housing units in Montogomery are rentals.

Montgomery’s health care offerings and crime rate are less impressive, which may deter some residents. This city is best for young professionals and families who want a low cost of living and a suburban environment.

6. Fairhope

Fairhope has the unique distinction of being one of only two places in the world where the phenomenon of jubilees takes place. A jubilee occurs when an astounding number of crabs, shrimp, eels, fish, and other sea life piles up along the shore, driven by poor oxygen levels in the water. Even without the jubilees, Fairhope’s shores are delightful, with soft sandy beaches, quaint fishing piers, and breathtaking sunsets over the bay.

If you’re looking for a small-town feel and slower pace of life, Fairhope is the place to go. The town has a strong sense of community and a thriving art scene with an annual arts and crafts festival, ample public art, and several galleries dotting the streets. Fairhope has outstanding schools and an impressive crime rate 20% lower than the state average. For all its delights, Fairhope’s cost of living is just 3% higher than the national average, though that puts it 15% higher than the state average.

In Fairhope, 81% of residents own their homes and 19% rent. The cost for a one-bedroom rental fell 9% between November 2022 and November 2023 to $1,168. The median rent for a two-bedroom apartment is $1,573.

7. Vestavia Hills

A thriving suburb of Birmingham, Vestavia Hills is a popular destination for young professionals and families. An impressive replica of a Roman temple marks the northern entrance to the city. Vestavia Hills maintains its own outstanding school system and numerous parks, trails, and sports facilities.  The Vestavia Hills Library in the Forest offers abundant resources for locals, including a makerspace, photography studio, technology classroom, and cognitive care kits to support those with dementia.

Crime in Vestavia Hills is 62% lower than the state average. Though the cost of living is 32% higher than the Alabama average, earnings are also higher, with the median home price 147% more than Alabama’s average income.

Vestavia Hills has primarily single-family homes. In Vestavia Hills, 78% of residents own, and 23% rent. The median rent for a one-bedroom unit increased 19% year-over-year to $948 as of November 2023. The median rent for a two-bedroom is up 25% over the same period, putting it at $1,248.

8. Mobile

Mobile is the birthplace of Mardi Gras and maintains its festive spirit today, with more than 40 parades for Mardi Gras alone. The oldest city in Alabama, Mobile has a historic downtown with stunning French and Spanish architecture. Nearby Mobile Bay provides much of the fresh seafood for well-known local restaurants.

The cost of living in Mobile is 2% lower than the state average. However, the average household income is 3% below average, and crime is above average, particularly in the Tillman, Oakdale, and Maryvale neighborhoods.

The median rent for a one-bedroom apartment in Mobile was $1,006 as of November 2023, representing an 18% year-over-year increase. The median rent for a two-bedroom is just $1,100. In Mobile, 48% of residents rent their homes, while 52% own.

Hoover is a popular choice for families who want access to the amenities of Birmingham within a quieter corner of suburbia. Nestled in the foothills of the Appalachian Mountains, this city has an undeniable charm. Home to the 10,000-acre Oak Mountain State Park, Hoover offers plenty of green spaces for outdoor recreation. The Riverchase Galleria is a shopping mecca with something for everyone.

9. Hoover

The cost of living in Hoover is its greatest drawback, coming in 22% higher than the state average. However, it’s worth noting that crime is 23% lower than the state average, unemployment is just 3%, and the median household income is 108% higher than Alabama’s state average.

Rental rates in Hoover are falling, with a 21% year-over-year decrease for one-bedroom apartments, a 19% decrease for studio apartments, and a 13% decrease for three-bedroom units as of November 2023. Only two-bedroom apartments went up in price, and only by 2%. You can expect to pay $999 for a one-bedroom or $1,145 for a two-bedroom here. Thirty percent of Hoover residents rent.

10. Daphne

Daphne is one of the safest cities in Alabama, with a crime rate that’s 40% below the state average. Sitting on Mobile Bay’s eastern shore, Daphne offers a quiet suburban existence. Local highlights include Bayfront Park, where you can launch a canoe or kayak onto the bay, and Gator Alley Boardwalk, where you can spot over 450 alligators beneath the viewing platform. Daphne offers plenty of places to get fresh seafood, including Manci’s Antique Club and Boudreaux’s Cajun Grill. 

All of these amenities come at a great price in Daphne, where the cost of living is 9% higher than the state average and 4% lower than the U.S. average. Employment in the area is strong, with the median household income coming in 59% above the state average. In Daphne, owners occupy 70% of homes, and 30% are rentals. Median rental prices for a one-bedroom have fallen 9% year-over-year to $1,110 as of November 2023. The median rate for a two-bedroom is $1,315.

Final thoughts

If you’re looking for the best places to live in Alabama, these cities will give you plenty of compelling places to start. From quaint coastal towns to bustling cities, this southern haven has a little of everything. Start exploring and find your next new home in the Heart of Dixie.

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