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Homewood, Alabama

Cost of Living in Homewood

Detailed cost of living data — sourced from authoritative datasets and normalized for direct comparison.

Cost of Living in Homewood, Alabama

The cost of living in Homewood, AL, is generally considered more affordable than the national average, with an overall cost of living index of approximately 91.5 compared to the national average of 100. However, housing costs in Homewood are notably higher than the broader Birmingham metropolitan area, which is the primary factor driving up the overall cost of living within the city itself. Despite this, other expenses such as groceries, utilities, and transportation tend to be more in line with or even below the national average, making Homewood an attractive option for those seeking a high quality of life without the extreme costs found in many larger U.S. cities. Property taxes, in particular, are often a fraction of what one might pay in other major American metros.

Monthly Costs

Average Rent
$1,400
Groceries
$440
Utilities
$275
Transport
$80
Healthcare
$625
Cost Index
92

Detailed Breakdown

Gym membership (monthly)
$45.00
Entertainment
Cinema ticket
$15.00
Entertainment
Restaurant meal (mid-range)
$25.00
Food
Monthly groceries
$440.00
Food
Doctor visit (without insurance)
$175.00
Healthcare
1BR Apartment (city centre)
$1,194.00
Housing
2BR Apartment (city centre)
$1,434.00
Housing
Home purchase (per sq ft)
$307.00
Housing
Monthly transit pass
$80.00
Transport
Gas per gallon (USD)
$3.66
Transport
Electricity + internet (monthly)
$298.00
Utilities

About Homewood, Alabama

Homewood, Alabama, is a vibrant and desirable city located just south of downtown Birmingham, known for its tree-lined streets, strong community feel, and excellent quality of life. The city's character is often described as a blend of historic charm and modern amenities, attracting a diverse population including young professionals and families. Its strategic location offers residents convenient access to major employment centers, top-tier healthcare facilities, and a thriving cultural scene in the greater Birmingham metropolitan area. Many people are drawn to Homewood for its highly-regarded public school system and its emphasis on local businesses and community engagement.

About Alabama

Alabama, located in the southeastern United States, is characterized by its Southern charm, rich history, and diverse natural beauty, ranging from the Appalachian foothills to Gulf Coast beaches. The state's economy has diversified beyond its agricultural roots, with major industries now including automotive manufacturing, aerospace, healthcare, banking, and steel production. Living in Alabama generally offers a low cost of living, particularly for housing, which is significantly below the national average. The climate is humid subtropical, featuring hot, humid summers and mild winters with ample sunshine for much of the year, supporting an outdoor-oriented lifestyle.