Cost of Living in Homewood, AL

With a cost of living index of 117, Homewood, AL is a notably expensive place to live. Living here is 17% more expensive than the national average and 43% above the Alabama state average of 74. With a population of 27,697, Homewood is a mid-sized community that balances access to services with a more manageable cost of living compared to larger metros.

Housing costs are the biggest factor in Homewood's cost of living. The median monthly rent is $1,457 (10% above the US median of $1,319), and the median home value sits at $502,300 (65% above the national median of $304,900). At current prices, the median home costs roughly 4.6x the median household income — a stretch for many buyers, though not uncommon in today's market.

The median household income in Homewood is $108,386, which is 44% higher than the national median of $75,149. Residents spend roughly 16% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. While incomes are above average, they more than offset the higher cost of living.

Climate is another factor for anyone considering a move to Homewood. The area sees an average annual temperature of 63.9°F, with summers averaging 80°F and winters around 47°F. Annual rainfall totals 56.6 inches spread over roughly 118 days. The mild climate is a draw for many residents and keeps utility costs moderate year-round.

Everyday prices in the Birmingham, AL (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 6 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.