Birmingham Home Prices: $198K, Down 0.2% — 17 ZIPs Analyzed (2026)
$198,078. That’s what a typical home costs in Birmingham right now. Prices slipped 0.2% over the past year — barely a move, but still a step back. In a market where some Alabama cities are booming, Birmingham is holding steady at a price point most buyers can actually reach.
Quick answer: The average home price in Birmingham, AL is $198,078 as of February 2026, down 0.2% year over year according to Zillow.
Current Home Prices in Birmingham
Birmingham sits well below the national median. Here’s where things stand:
| Metric | Value |
|---|---|
| Median Home Price | $198,078 |
| Year-over-Year Change | -0.2% |
| Lowest ZIP Code Price | $58,176 |
| Highest ZIP Code Price | $565,240 |
| Number of ZIPs Tracked | 17 |
| Data as of | February 2026 |
That $198K median tells only part of the story. The gap between the cheapest and most expensive ZIP codes is over $507,000. You can find a home under $60K in one neighborhood and pay over half a million a few miles away.
The year-over-year decline of 0.2% is essentially flat. Birmingham hasn’t seen major price swings in either direction. For buyers, that means you’re not chasing a moving target. For sellers, it means you shouldn’t expect bidding wars to push your price up.
The 17 ZIP codes tracked give a solid picture of the metro. Some are deep in the affordable range, others rival pricing in much larger Southern cities.
Birmingham Home Prices by Neighborhood
Every ZIP code tells a different story. Here’s the full breakdown across all 17 tracked neighborhoods:
| ZIP Code | Median Home Price | Median Rent |
|---|---|---|
| 35243 | $565,240 | $1,858 |
| 35242 | $550,790 | $1,523 |
| 35222 | $383,372 | $1,018 |
| 35203 | $320,480 | $2,234 |
| 35233 | $306,732 | $1,574 |
| 35205 | $224,434 | $1,029 |
| 35235 | $183,413 | $1,394 |
| 35212 | $117,536 | $1,100 |
| 35206 | $100,919 | $1,155 |
| 35061 | $97,816 | Data not available |
| 35234 | $95,531 | Data not available |
| 35208 | $80,870 | $1,088 |
| 35211 | $75,941 | $1,277 |
| 35218 | $73,410 | $992 |
| 35204 | $69,450 | $855 |
| 35221 | $63,216 | Data not available |
| 35207 | $58,176 | Data not available |
Most Expensive ZIPs
35243 — $565,240. Nearly three times the city median, this is Birmingham’s priciest ZIP code, with rents at $1,858/month reflecting the premium.
35242 — $550,790. Just behind 35243, this area carries similar price weight with somewhat lower rents at $1,523/month — a sign of more owner-occupied housing.
35222 — $383,372. Almost double the city average, but rents here sit at just $1,018/month, making it an interesting mismatch between home values and rental demand.
Most Affordable ZIPs
35207 — $58,176. The most affordable ZIP in Birmingham at roughly 29% of the city median. Rent data isn’t available here.
35221 — $63,216. Another sub-$65K option. At this price, a mortgage payment would be well under $400/month before taxes and insurance.
35204 — $69,450. The cheapest ZIP with rent data available, at $855/month. Buying here makes strong financial sense over renting.
Rent vs Buy in Birmingham
Rent data is available for 13 of Birmingham’s 17 ZIP codes. Here’s how the numbers compare.
A mortgage on the city-wide median of $198,078 at a 7% rate over 30 years runs about $1,318/month (principal and interest only). Add taxes and insurance, and you’re looking at roughly $1,550–$1,650.
Most rents in Birmingham fall between $855 and $1,858/month. The city’s cheapest rent is in 35204 at $855/month — far less than a mortgage on the median home, but buying in that same ZIP at $69,450 would cost roughly $462/month in principal and interest alone.
The priciest rent is in 35203 at $2,234/month. Homes there run $320,480, which translates to about $2,132/month in mortgage payments. That’s one of the few ZIPs where buying is actually cheaper on a monthly basis than renting.
For budget-conscious buyers, ZIPs like 35207, 35221, and 35204 offer home prices so low that mortgage payments would undercut most rental rates across the city.
Population Growth and Migration
Birmingham is losing residents. The city’s population fell from 200,270 in 2020 to 196,357 in 2024 — a 2.0% decline over four years.
| Year | Population |
|---|---|
| 2020 | 200,270 |
| 2021 | 197,645 |
| 2022 | 196,898 |
| 2023 | 196,818 |
| 2024 | 196,357 |
The drop has slowed. Birmingham lost 2,625 people between 2020 and 2021 but only 461 between 2023 and 2024. The bleeding may be stopping, but it hasn’t reversed.
Compare that to other Alabama cities:
| City | 2024 Population | 4-Year Growth |
|---|---|---|
| Huntsville | 230,402 | +6.5% |
| Tuscaloosa | 114,288 | +8.2% |
| Auburn | 83,757 | +8.7% |
| Madison | 64,029 | +11.7% |
| Decatur | 57,974 | +1.5% |
Every comparison city is growing. Madison is up 11.7%. Huntsville has already passed Birmingham as Alabama’s largest city at 230,402 residents. This population loss puts downward pressure on housing demand, which partly explains why prices remain flat.
Birmingham Housing Market Trends
Here’s how the median home price moved month by month over the past year:
| Month | Median Price | Low | High |
|---|---|---|---|
| Feb 2026 | $198,078 | $58,176 | $565,240 |
| Jan 2026 | $198,317 | $57,931 | $564,549 |
| Dec 2025 | $198,419 | $57,197 | $564,333 |
| Nov 2025 | $198,430 | $56,295 | $562,893 |
| Oct 2025 | $198,130 | $55,616 | $560,235 |
| Sep 2025 | $197,660 | $55,080 | $556,894 |
| Aug 2025 | $197,239 | $54,416 | $553,961 |
| Jul 2025 | $196,996 | $53,650 | $552,273 |
| Jun 2025 | $197,047 | $52,899 | $551,153 |
| May 2025 | $197,248 | $52,565 | $550,168 |
| Apr 2025 | $197,813 | $52,812 | $549,116 |
| Mar 2025 | $198,475 | $53,863 | $548,010 |
The median barely moved — from $198,475 in March 2025 to $198,078 in February 2026. That’s a $397 decline over 12 months.
The pattern is worth watching. Prices dipped from March through July 2025, then climbed back through November before slipping again into early 2026. The range between high and low ZIPs has widened. The cheapest areas got cheaper (from $53,863 down to $52,565, then back up to $58,176), while the most expensive areas kept rising ($548,010 to $565,240). Birmingham’s housing market is splitting — the top end is pulling away while the bottom end fluctuates.
Is Birmingham a Good Place to Buy in 2026?
The data points to a buyer-friendly market.
Prices are flat. You’re not competing against 5% annual appreciation that could price you out by next quarter. At $198,078, the median is well below most major Southern metros. And with 17 ZIP codes ranging from $58K to $565K, there’s a price point for nearly every budget.
The population decline matters but shouldn’t scare you off. The rate of loss is slowing, and Birmingham still has 196,357 residents supporting a real economy. Flat prices in a shrinking-population city aren’t a red flag — they suggest the market has found its floor.
If you’re an investor, the low-price ZIPs with strong rent-to-price ratios deserve attention. A $75,941 home in 35211 renting at $1,277/month is a 20% gross yield. That math is hard to find in most US markets.
Birmingham Housing Market Outlook for 2026-2027
The 12-month trend shows a market moving sideways. Prices peaked at $198,430 in November 2025 and have since drifted down by $352 — less than a 0.2% move.
If the current pace continues, expect the median to hover between $196,000 and $200,000 through late 2026. There’s no momentum in either direction strong enough to push prices outside that band.
The widening gap between high and low ZIPs could continue. Premium neighborhoods have gained about $17,000 at the top end over 12 months, while the city median stayed flat. If you’re buying in a higher-priced ZIP, you may see modest appreciation. In the lower-priced areas, prices are more likely to hold steady or fluctuate within a narrow range.
The 3-month trend from December 2025 to February 2026 shows a gentle slide of about $341. That suggests early 2026 may see continued softness before the typical spring pickup.
Similar Markets in AL
If you’re comparing options across Alabama, here are a few other cities worth checking:
- Huntsville — Alabama’s largest city and its fastest-growing major metro, a sharp contrast to Birmingham’s flat market.
- Tuscaloosa — A college town with 8.2% population growth, which could mean different price drivers than Birmingham.
- Montgomery — The state capital offers another mid-size Alabama market for comparison.
- Mobile — Gulf Coast pricing and a different economic base give buyers a distinct alternative.
- Madison — The state’s fastest-growing city at 11.7%, worth watching if you want appreciation potential.
Frequently Asked Questions
What is the average home price in Birmingham?
The average home price in Birmingham, AL is $198,078 as of February 2026. Prices range widely across the city’s 17 tracked ZIP codes, from $58,176 in 35207 to $565,240 in 35243.
Are home prices going up or down in Birmingham?
Prices are down 0.2% year over year — essentially flat. The median dropped less than $400 over 12 months. There’s no significant upward or downward trend right now.
Is it cheaper to rent or buy in Birmingham?
It depends on the neighborhood. In affordable ZIPs like 35204, a mortgage on a $69,450 home costs roughly $462/month — far less than the $855 rent in the same area. In pricier ZIPs, renting and buying costs are closer together. In 35203, renting at $2,234/month actually exceeds the estimated mortgage payment.
What is the most affordable neighborhood in Birmingham?
ZIP code 35207 has the lowest median home price at $58,176. That’s 71% below the city median. ZIP codes 35221 ($63,216) and 35204 ($69,450) are also strong options for budget buyers.
Methodology
Home values are based on the Zillow Home Value Index (ZHVI), a smoothed measure of typical home values in the 35th to 65th percentile range. Rent estimates use the Zillow Observed Rent Index (ZORI). Population figures come from the U.S. Census Bureau Population Estimates Program (2020-2024 vintage). All datasets are publicly available. Housing data updated 2026-02-28.