10 most expensive cities for home buyers in Alabama

Alabama may be known for its relatively affordable real estate, but that doesn’t mean there aren’t some upscale markets where buying a home will cost you a pretty penny. Whether it’s luxury living just outside Birmingham or serene vacation homes near the state’s lakes and beaches, some cities in Alabama have become notably pricey.

Mountain Brook, often called Alabama’s “Tiny Kingdom,” is comfortably perched at the top of the state’s list of most expensive housing markets. Located just south of Birmingham, Mountain Brook’s typical home value reached about $936,000 as of February, according to data from real estate company Zillow, as reported by AL.com. Known for its wealth and charm, the city’s housing market remains far ahead of other areas in the state.

RELATED: Report: February shows continuing monthly and yearly increases in home sales across Alabama

Following Mountain Brook, two popular vacation destinations come in next on the list: Orange Beach and Equality. Both cities boast typical home values just above $680,000. Orange Beach is famous for its sandy shores and vibrant tourism, while Equality offers a tranquil lakeside lifestyle near Lake Martin.

The Birmingham metropolitan area is prominent among the state’s priciest spots. After Mountain Brook, Vestavia Hills is No. 6, Homewood is No. 7, and Hoover is No. 16. Smaller affluent communities such as Indian Springs Village (No. 4) and Lake Purdy (No. 8) also make the list. These cities are known for their well-established neighborhoods and desirable school districts, adding to their appeal.

Baldwin County, home to Alabama’s most popular beaches and one of the nation’s fastest-growing areas, also makes a strong showing. Orange Beach, Gulf Shores (No. 13), Fairhope (No. 10), and Spanish Fort (No. 19) are all in the top 20. Just across the bay, Dauphin Island ranks 12th, drawing attention as a laid-back coastal getaway.

In North Alabama, just one city makes the top 20 list: Owens Cross Roads, ranking 14th. Nestled near Huntsville, this city’s typical home value is around $422,000, reflecting the area’s growing appeal as a suburban hub for the Rocket City.

The Zillow data, reflects typical home values for single-family houses within the 35th to 65th percentile, excluding both extremely low and high-end properties. This method helps paint a clearer picture of median real estate costs in each area.

As Alabama’s housing market continues to evolve, these upscale communities maintain their place as the state’s most sought-after—and most expensive—places to call home.

Top 10 Most Expensive Cities to Buy a House in Alabama

  1. Mountain Brook – $936,000
  2. Orange Beach – $680,000+
  3. Equality – $680,000+
  4. Indian Springs Village
  5. Lake Purdy
  6. Vestavia Hills
  7. Homewood
  8. Hoover
  9. Fairhope
  10. Gulf Shores

Whether you’re looking for coastal charm, lakeside serenity, or upscale suburban living, Alabama’s priciest spots prove that luxury has found a home in Alabama.

Sherri Blevins is a writer for Mountain Valley News and a staff writer for Yellowhammer News. You may contact her at [email protected].