The Average Alabama Home Price Has Only Risen a Tiny Bit In the Past 10 Years

The Average Alabama Home Price Has Only Risen a Tiny Bit In the Past 10 Years

According to a 24/7 Wall Street report on the cost of homeownership across the nation, the median price of a home in Alabama has only increased 2.5% in the past 10 years, amounting to $143,500. This growth is quite low considering other states and represents the 18th lowest rate of price growth throughout the nation.

In fact, this price is the 44th lowest in the country.

So why, in a growing economy, have the house prices stayed relatively the same in Alabama? The answer requires a look back at the housing market in 2007, right before it crashed. Mortgage prices were rising exponentially until the market crashed in 2011, bringing the average home sale price in the country down a whopping 31%, from $219,000 to $150,500.

Since then, there have been rapid improvements made in the state of the housing market as the economy has stabilized. However, despite these changes, not all states experienced the same housing demands.

The report shows that there is a multitude of different factors that homeowners consider when buying a home, including school district ratings, relative proximity to local attractions, and quality of life in the area.

However, that’s not necessarily a bad thing! While Alabama hasn’t had a surge in housing demand compared to other states, Alabamians seem to be comfortable right where they are. The state has a homeownership rate of 68%, which is the 15th highest in the nation, Al.com reports.

It is important to note that these housing expenses don’t include the price of remodeling or regular maintenance and repairs. For example, according to the National Association of Home Builders, kitchen remodeling represents 69% of all requested remodeling jobs, costing thousands of dollars.

24/7 Wall Street has found that Hawaii is the most expensive state to live in, with average home prices totaling $485,000. West Virgina closed out the list, coming in with a median home price of $122,550.