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With an overall cost of living that’s 7.1 percent below the national average, Birmingham offers residents all the perks of a happening Southern town with a slightly lower price tag.
In a thriving cultural scene that includes art, live performances and museums, there’s never a shortage of entertainment. Additionally, places like the Birmingham Zoo and McWane Science Center offer up family-friendly fun.
The city is also a big center for college football. Within the city limits, you can cheer on the team at the University of Alabama at Birmingham, while the Auburn University Tigers have a home-field advantage just over two hours away.
With so much to see and do, Birmingham is definitely a growing city, but even with a cost of living slightly below the national average, would living here fit into your budget?
This is how the individual costs of living in Birmingham stack up.
Housing costs in Birmingham
It’s nice to know that Birmingham expenses are pretty accessible when it comes to housing. Average prices are 17.2 percent below the national average. This is considerably lower than nearby major cities like Atlanta, whose average housing price is 13 percent above the national average.
Although rent prices are rising for both one-bed and two-bed apartments, average rent remains within a reasonable range. The average monthly rent for a one-bedroom apartment in Birmingham is $1,424, up 27 percent over last year. You can rent a two-bedroom apartment for an average of $1,259 per month, up only 12 percent over last year.
Even with these accessible prices, you can still find housing in Birmingham at a variety of price points based on what neighborhood you decide to call home.
If renting isn’t on your agenda, but home ownership is, the median price in Birmingham for a house is $247,556, up only 0.4 percent over last year.
Apartment hunting
Figuring out where to live in Birmingham means looking at neighborhoods in all different areas. You want the ideal location and a lot to do but also need an affordable price. Birmingham delivers plenty of options including the popular and historic neighborhood of Highland Park. This local gem has an average one-bedroom apartment rent of only $969 per month.
The highest one-bedroom price tag in Birmingham goes to Central City, with an average monthly price of $1,973. Including a small chunk of the downtown area, this neighborhood has a great location.
For those looking for a more budget-friendly community, average one-beds in Red Mountain are only $800 per month. This neighborhood includes Red Mountain Park, top-rated dining and plenty of family-friendly fun.
Food prices
Another source for delicious Southern cuisine, Birmingham definitely has signature dishes you must try. They include things like Greek meatballs, fried green tomatoes and, of course, barbecue. Whether you’re eating out or shopping for groceries, though, food prices in Birmingham are nine percent below the national average. That’s a 6.8 percent drop over the previous year.
To understand how this may impact your grocery list, shopping for staple items in Birmingham most likely means paying pretty reasonable prices. Ground beef is only $5.31 per pound, and a half gallon of milk averages out at $2.25. A dozen eggs are only $1.48 on average, and a loaf of bread is only $2.89.
These prices are definitely more budget-friendly than in nearby cities like Nashville, where food costs are only two percent below the national average. Here, you’ll pay $4.00 for a loaf of bread, almost 1.5 times as much.
Utility costs
You definitely get four, very-defined seasons living in Birmingham. The summer may feel short, but temperatures keep things comfortable. Winters can sometimes drag on, though, bringing a lot of wind even though colder days are minimal.
Dealing with all the seasons can impact your utility bill, with the AC blasting in summer and the heat cranked up in winter. In Birmingham, utility costs are 2.8 percent above the national average. This aligns with other Southern cities. Mobile‘s costs, for example, is 1.3 percent above the national average, and Auburn is five percent above.
What this means for Birmingham locals, when that monthly utility bill arrives, is that it’s a little higher in certain months. On average though, expect to pay $185.52 per month for your energy bill.
Transportation costs
Having a car in Birmingham is probably a good idea, although you might not need it every day. The city has relatively low walk and bike scores meaning some areas may let you navigate on foot, but many won’t.
If you’re driving about and get worried about parking, the Birmingham Parking Authority makes it easy. Managing over 8,000 different spaces, you can pre-select a parking structure, deciding whether to pay for a monthly pass, by the day or by the hour.
To get around without a car, MAX transit provides 19 bus routes running in all directions. The one-way fee is $1.50 for adults, but you can purchase an all-day pass for $3.50 or a monthly pass for $53.00.
Also available, the Magic City Connector serves the downtown area, city hall, the art museum, Linn Park and the University of Alabama, Birmingham. What’s even better, this particular route is only 30 cents per ride.
Overall, transportation costs in Birmingham are reasonable, at 6.5 percent below the national average. That’s a little over a point increase from the previous year.
Healthcare costs
With averages slightly above what people pay across the nation, healthcare costs in Birmingham are 1.1 percent higher than the national average. However, individual costs are ultimately different for everyone based on personal needs and necessary care.
That said, on average, expect to pay $92.95 to see a doctor, $89.50 for that annual eye exam and $131.33 each time you visit the dentist. When it comes to prescription medications, average costs hit around $460. This is all without the benefit of insurance, of course.
Healthcare prices in Birmingham sit very much in the middle when compared with other cities in the state. A doctor’s visit in Huntsville averages out at $125, while the same visit is only $83 in Florence.
To really understand how healthcare prices will impact your cost of living in Birmingham, make sure to review your typical expenses in this area, looking at how often you make a visit to a doctor and what your specific medications tend to cost with your insurance coverage.
Goods and services costs
One of the final components that go into the cost of living in Birmingham are goods and services. These are all the extras in your monthly budget. You want to include them, you like having them as part of your routine, but if money ever got tight, you could go without them.
Overall, goods and services in Birmingham are 0.2 percent below the national average. This is well below nearby cities like Atlanta with an average that’s 6.7 percent above.
Specific items you may have in this category include a night out at the movies ($12.64 per ticket), a haircut ($19.20) or even a weekly six-pack of beer ($9.99).
Tax rates
When it comes to sales tax, as a state, Alabama sets the rate at four percent. Since individual counties and cities can add on to this total, Birmingham’s sales tax rate is 10 percent.
Although this rate may seem high in total, as a state, Alabama has one of the lowest base sales tax rates in the country.
The easiest way to understand how this 10 percent rate impacts you when you shop is to think about shopping for a big-ticket item like a couch. Imagine the bill is $1,000. In this instance, $100 extra is going straight to taxes.
How much do I need to earn to live in Birmingham?
Figuring out how to reconcile the cost of living in Birmingham to how big of a paycheck you need is tricky. What’s best is to start with the biggest expense, rent. Most experts agree that you should set aside 30 percent of your income for rent. Knowing that the average one-bedroom in Birmingham is $1,148, you’d need to have an annual salary of $45,920 for all the numbers to add up.
Since the median annual income in Birmingham is $38,832, there’s a chance you’ll need to include some less expensive neighborhoods in your apartment search, or some a little further away from the city center. However, finding a place to live in Birmingham is still possible. To fully understand your budget limits, use our rent calculator to get exact numbers.
Living in Birmingham
There’s plenty to love about Birmingham — surely enough to want to call it home. From the food to the shopping, the culture to the history, there’s something here for everyone. It’s also nice that it’s a pretty affordable place to live. If the cost of living in Birmingham appeals to you, what’s holding you back? Start that apartment search today.
The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of September 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Source: rent.com