Your Guide to Moving to Alabama

Welcome to Heart of Dixie, where the Southern hospitality and warm climate make moving to Alabama a great choice! Whether you’re relocating for a job or just looking for a change of scenery, the Yellowhammer State is an interesting state. From building rockets in Huntsville to its fresh Gulf seafood, what life is like in Alabama might surprise you.

Before you join the Crimson Tide, get a handle on what Alabama is like with information about the cost of living, job market, education, real estate market, and more. Our guide is a great place to start if you’re considering a move to Alabama.

Cost of Living

As you might predict in a southern state, the cost of living in Alabama is lower than the national average. How much lower? About 16% in 2022, based on Sperling’s Best Places Cost of Living Index. Residents enjoy big savings in housing, transportation, and miscellaneous costs. With all typical expenditures taken into account, Alabama ranked as the 4th cheapest place to live in the nation in 2021.

In 2022, MIT estimated a family of four with two adults and two children spent about $10,597 on housing, $12,709 on transportation, and $9,856 on food. With one adult working, the family would need an annual pre-tax income of $72,841 to make ends meet.

Job Market

The job market is also strong in Alabama, with many top employers in a diverse selection of industries across the state. One key indicator, the unemployment rate, was a full percentage point under the national rate of 3.7% in November 2022.

It’s not all agriculture in Alabama. Education and health services, professional and business services, and trade, transportation, and utilities were Alabama’s top-growing sectors in 2022. The latter was the top-employing industry, followed by government employment, and professional services.

The mean hourly wage across all occupations, from chief executives to food service, was $24.72, for an annual wage of $51,410.

The largest employers in the private sector, based on employee numbers, were the University of Alabama at Birmingham (UAB), Regions Financial Corp, Honda Manufacturing, Encompass Health, Vulcan Materials, Motion Industries, and Alabama Power.

Outside of size, Forbes looked at employee satisfaction to find the best companies in Alabama. Among these were Airbus, Home Depot, UAB, Auburn University, Lockheed Martin, Raytheon Technologies, Northrop Grumman, and NASA. Taken together, you can see Alabama has diverse career opportunities.

Education

Few institutions are as well-known in the nation as the Crimson Tide at the University of Alabama and the Auburn University Tigers. Both rank among the top schools in the region for their academics and their sports. Auburn is ranked no. 1 in the state (no. 97 in the nation), while UA comes in at no. 3.

The state also has several smaller universities, such as the private Samford University, ranked no. 2 in the state. In total, Alabama has about 24 higher education institutions, from the public University of Alabama system to private schools like Tuskegee University (no. 6 in the Regional Universities South).

For public K-12 schools, the Alabama Department of Education oversees 136 school systems. Unfortunately, its quality has been ranked low. US News and World Report placed it no. 47 on overall rankings, and no. 45 of 50 in 2022 for K-12 schools, an increase from no. 50 in 2019. Higher education was no. 39. Do remember the educational quality can vary widely across the state, so you can find excellent public school options if you do your research.

Real Estate Market

If you’re looking to live in Alabama, home prices remain reasonable compared to other parts of the nation. The median sale price for all home types was $264,800 in November 2022, a 4.7% year-over-year increase. Even though it rose, it fell well below the $370,700 national median of the same month reported by National Association of Realtors.

According to Moody’s, seven of the 12 housing markets evaluated in Alabama were severely overpriced in 2022. Huntsville was considered the most drastically overvalued out of these figures, at 31.59%, with the Gadsen area close behind at 28.53%.

The fastest-growing sale prices in 2022 were in Daphne, Hueytown, and Mountain Brook. However, the markets with the top sales prices were Daphne, Huntsville, and Auburn.

Alabama Taxes

Income, property, and sales taxes make up most of Alabama’s tax revenues. Overall, Tax Foundation places the state’s combined tax burden as no. 20, combing state and local taxes.

You won’t be exempt from income tax here. The state levies a tiered personal income tax rate from 2-5%, with no deductions or exemptions other than those on Social Security benefits or drawing a pension. Some local jurisdictions also tax individual income.

On the plus side, the state boasts one of the lowest property tax rates in the nation, at 0.39% per housing value. That placed it no. 49 of 50 in the nation for property taxes, so you’ll pay one of the lowest rates in this state.

Sales taxes are set at 4%, and there is a maximum local sales tax rate of 7.5%. The average combined sales tax was 9.24% in 2021. By the county, it ranged from 4% to 11%.

Weather

If you like it hot, you’re in luck. Alabama is in the humid subtropical climate zone, with long hot summers and short, mild winters. It has the fourth hottest summer in the US! Average summer temperatures can range from 80F to 90F, while winter averages hover around 4F to 19F, with some snowfall in the northern areas. The state averages 56 in of rain a year, but don’t worry. It sees an average 213 sunny days a year.

Alabama’s also part of what is known as “Dixie Alley,” an area known for severe thunderstorms and tornadoes. In fact, the state averages 65 tornados per year, with a peak in springtime activity.

Gulf shore residents are vulnerable to hurricanes, with the low-lying coastal plain susceptible to high storm surges.

Population

You’ve got it in Alabama if you want ample space between you and your next-door neighbor. Even the biggest city, Huntsville, is still considered “mid-size” based on its population.

As of July 2022, Alabama’s population was estimated to be 5.04 million. It grew by 1% from the 2010 to 2020 Census. It averages about 0.5% in population growth each year.

A largely rural state, the state’s largest city by population is Huntsville, with 225,476 residents. Capital Montgomery comes in next, followed by Birmingham. Other major cities based on population size are Auburn, Mobile, Tuscaloosa, and Dothan. All these tend to center around colleges.

Culture

Considered part of the “Deep South,” Alabama has a storied cultural history that can be explored in its museums, historic sites, and musical traditions.

It’s considered by many a deeply conservative state in religion and politics. The modern Civil Rights Movement started here, with Rosa Parks’ arrest on a Montgomery bus. Several key Civil Rights landmarks can be found in the state, and you can visit many of them following the US Civil Rights Trail.

Musically, the state’s famous for its gospel, blues, and country. Live jazz and blues are still popular in Alabama. Few people realize that the US celebrations for Carnival and Mardi Gras have roots in Mobile, not New Orleans.

Alabama cuisine is distinct for its southern style. Local favorites include fried green tomatoes, stone ground grits, and boiled peanuts. Of course you’ll find roadside BBQ stands and southern classics like shrimp and grits.

Sports

One of the few states that lack professional sports teams, Alabama still has a strong sports culture, particularly in football. Dedicated fans never miss out on the excitement at SEC college games with the University of Alabama’s mighty Crimson Tide, a multi-national championship football team. Of course, Auburn University’s Tigers are no slouches, either, with 12 undefeated seasons and 44 postseason bowl appearances.

Baseball fans can take in a minor league game at one of the three teams in Birmingham, Huntsville, or Montgomery.

Outdoor Recreation

With five distinct regions, 21 state parks, and 23 million acres of forests, Alabama’s outdoors range from the Gulf shore to the Appalachian foothills.

Take a hike or bike around the state’s many trails. The Pinhoti Trail crosses Alabama for 177 miles, part of the Eastern Continental Trail that runs thousands of miles.

Head out to the beach or local lake for some swimming and fishing. Many lakes and streams provide access to fishing and boating throughout the state.

The scenery is stunning, with one of the largest natural bridges on this side of the Rocky Mountains to majestic underground caverns with stalagmite formations.

Hunting is popular in the state, with deer, turkey, and small game plentiful. The state has about 23 million acres of forests.

Why live in Alabama?

Alabama offers everyone something: affordable living and real estate to friendly locals and fantastic food. The natural beauty of the state’s outdoors offers many activities for outdoor enthusiasts, while its culture provides an enriching experience. It’s easy to see why so many people call it home. So what are you waiting for? Keep exploring why a move to Alabama makes sense for you!