What Is Alabama Cost Of Living 2023


Alabamans are without a doubt extremely proud of their state. It’s not surprising that Alabamans are so proud to be from the Heart of Dixie given that the state has some of the best college football traditions in the country, mouthwatering southern cuisine, or the fact that Mobile, Alabama was the real location of the first Mardis Gras celebration.

Alabama’s population has increased by 5.1 percent since 2010 and now exceeds 5,000,000 people, helping the state to climb the rankings. Alabama’s low cost of living is undoubtedly one of the factors that keeps luring new inhabitants.

Where is Alabama?

Alabama is a state situated in the southeast corner of the country. Tennessee, Georgia, Florida, and the Gulf of Mexico form its northern, eastern, and western borders, respectively.

Most Americans prefer to refer to their state as Yellowhammer State, which is an interesting unofficial term named after the state bird. Montgomery serves as Alabama’s capital, but Birmingham and Huntsville are the two largest cities in terms of population and total area, respectively. The first French colonial city was created in Mobile, Alabama.

Among all the states in the USA, the state ranks 30th in terms of total land area and 23rd in terms of population. The location of the country favors a humid subtropical climate. Due to its proximity to the Gulf of Mexico, the southern section of the state experiences deadly hurricanes and tropical storms more regularly.

The state of Alabama is very advanced. Its economy is mostly reliant on agriculture, as well as primary and secondary industries. According to the provided map of Alabama, which connects every city in Alabama as well as with cities in surrounding states, the railways and roads are fairly developed.

The state is traversed by the two significant rivers, the Tennessee and Mississippi. The state’s additional water needs are met by the well managed water system, which also supports agriculture.

About Alabama

  • Continent —- North America
  • Country ——— United States
  • Region Type — State
  • Coordinates — 32.3182° N, 86.9023° W
  • Abbreviation — AL, Ala. US-AL
  • Capital ———- Montgomery
  • Largest City — Birmingham
  • Area ————— 52,419 sq mi (135,765 km2)
  • Population —– 4,903,185 (as of July 2019, U.S. Census Bureau Facts)
  • Joined The Union — December 14, 1819 (22nd)
  • Nickname —— Heart of Dixie
  • Highest Point — Mount Cheaha
  • Lowest Point—- Gulf of Mexico
  • Timezone CST (UTC 06:00)

Official Website www.alabama.gov

Why Should I live in Alabama?

Alabama welcomes an increasing number of new residents each year. While many of these people were first hesitant to go, others knew right away that Alabama would be their new and permanent home.

If you’re considering relocating to the Yellowhammer State but aren’t sure if you should, perhaps we can provide some guidance. Here are the reasons you should live in Alabama. Check out our list of Easy Own Homes

#1. Essentially, it is summer

Look at your calendar. Where you are, is it winter? Because that season doesn’t exist in Alabama. In a place where anything below about 60 degrees is considered “arctic tundra” on the thermostat setting, you have to really take the southern understanding of cold weather with a grain of salt. It may get cold for two weeks in February. And on those chilly days? Yes, it will still get to be around 70 or 80 degrees. For practically every other state, that is summer. So come on down and bring your lawn flamingos, barbeque,  plastic furniture. Grilling in December.

#2. Everything is represented here in some measure

In one state, we have caves, mountains, wetlands, forests, and beaches. Although the midlands (Montgomery, etc.) can be a little boring in terms of scenery, you can see almost any type of wilderness in a single day. Not a big fan of the outdoors or scenic views? No issue! If you look around, you’re sure to uncover a ton of Civil War and Civil Rights history to investigate.

#3. People will be polite even if they don’t like you

Even when individuals don’t want it to, southern hospitality exists. We are all unable to flip the switch to turn it off. So even though we don’t really care for your firm, we’ll nonetheless be courteous to you.

#4. In Alabama, the cuisine is better

Whatever you may think of a meal prepared at home. That’s arguably the tastiest dinner you’ll have all day in Alabama. Yes, there are still plenty of the traditional restaurant chains, but Middle America is home to many other options. Meals prepared at home are a southern specialty. 

#5. Old-fashioned accomodation at low prices

Alabama has a lower cost of living than other states. If you want, you can write that off as being a flyover state, but the southern heartland isn’t known for having skyrocketing real estate costs. In cities and urban areas, lodging is very affordable, and many ambitious real estate owners have discovered the many advantages of refurbishing older-style homes and structures. 

So even if the building may have an outside made of bricks in the manner of the 1800s and a scorch mark from a long-ago fire, the interior may be a stunning loft with refinished wood floors and a vaulted ceiling with a skylight, all at a very reasonable price.

#6. Football is supreme

In Alabama, college football reigns supreme. Along with the Iron Bowl, which puts two schools against one another every year, Alabama is home to two important college teams. Everyone can only talk about hunting and nothing else.

The big game is watched by almost everyone. The greatest sporting events of the year are prioritized in work and personal calendars, and every child who has ever attended an Alabama public school has grown up knowing how to play the game.

#7. There may be a job opportunity for you

Alabama is a staunchly Republican state, and campaign pledges that reference lost industrial jobs in the Rust Belt certainly apply to the deep south, whether you agree with the present political atmosphere or not. Alabama has a robust manufacturing sector, but it will probably expand in the years to come if significant industry moves back to the US.

Therefore, if you’re looking for a job, pay close attention to it. Alabama tries to be as accommodating to industrial industry as it can, and as a result, it has benefited from some respectable partnerships.

#8. Iced sweet tea if that’s what you’re after

Sweet tea is just that sweet. But you have to strike the appropriate balance. The right type of tea, the right amount of sugar, and the right Mason jar were all used. Many people in Alabama have mastered this fine art to a tee, so to speak. Tell your host if you would like your sweet tea with ice, lemon, or just straight from the refrigerator.

#9. Less crowded

The world contains several incredibly congested locations. Manhattan. The LA 405. Essentially all of Atlanta during peak hours.

There aren’t many of such populated areas in Alabama. Yes, there will still be some delays due to accidents. While not enjoyable, rush hour in the metropolis is tolerable. The church parking lot around 11:30 on Sunday mornings presents the greatest traffic risk to you.

To see the game, everyone must leave the parking lot. But do not fret. Nobody is revving the engine or blowing the horn. After church on Sunday, we’re just too nice for that kind of behavior.

#10. Strong fields in Higher Education

There are some really great benefits to attending college in Alabama. Due to their successful football teams, Alabama and Auburn are able to support excellent business, engineering, and science programs. One of the top medical programs in the country is offered at UAB.

 Strong doctorate and master’s programs are available as well, even at smaller colleges. While some private institutions can significantly increase their costs, you’ll probably find the greatest programs at the large, public universities where you can budget correctly. Alabama can therefore assist you if you want to earn a degree or upgrade your knowledge.

What is the overall Alabama Cost of Living in 2022?

  • Overall Cost of Living in Alabama is $35,859   
  • Housing and Utilities:    $6,535
  • Health Care:                    $5,904
  • Food and Beverages:      $3,126
  • Gas and Energy Goods:  $787
  • Other Personal Expenditures: $19,505

Housing Costs in Alabama

Average housing costs in Alabama is $562 to $1,186 per month

  • Median monthly mortgage cost: $1,186
  • Median studio rent: $562
  • one-bedroom average rent: $651
  • Median two-bedroom rent: $777
  • Median three-bedroom rent: $897
  • Four-bedroom average rent: $1,038
  • Median gross rent: $792

Utility Costs in Alabama

Average Utility Costs in Alabama is $400.01 per month.

Alabamans can anticipate paying a total of $400.01 in utility bills per month. This covers water, cable, gas, and power.

Your property, utility usage patterns, and the services you select will all have an impact on the precise monthly cost (e.g. internet only or TV and internet). Below, we’ve listed some typical utility costs.

  • Electricity    $143.95
  • Gas              $112.06
  • Cable & Internet $114
  • Water          $30

Groceries & Food

Average Grocery & Food Costs in Alabama is $260.50 per person, per month.

According to the BEA’s most recent Personal Consumption Expenditures report, Alabamans spend around $3,126 year on groceries and non-restaurant food, or an average of $260.50 each month.

With the exception of Virginia and North Carolina, where grocery prices are higher than the national average, Alabama’s grocery and food prices are relatively affordable when compared to those of the rest of the country.

However, keep in mind that these costs will change based on where in Alabama you live. If you live in a major urban area like Huntsville as opposed to a smaller one like Decatur, expect to pay more for groceries.

Here’s the food costs across major Alabama cities.

  • Anniston-Calhoun County  91.4
  • Decatur-Hartselle   94.2
  • Birmingham        94.5
  • Florence        96.9
  • Mobile         97.3
  • Huntsville    99.2
  • Montgomery   101.4
  • Auburn-Opelika  105.1
  • Dothan      106.6


Average Transportation Costs in Alabama is $5,113 to $13,896 per year

You should keep an eye on your transportation costs if you intend to drive through the Land of Dixie. Fuel is expensive in the Southeast, and the expenses may pile up quickly (especially if you drive an American muscle car!)

Your transportation expenditures can vary significantly depending on your mode of transportation, the size of your family, and the number of vehicles you decide to acquire. We’ve divided up the estimated expenditures for you.

  • One adult, no children $5,113
  • Two working adults, no children $9,378
  • Two working adults, two children  $13,896

Health Care

Average Health Care Costs in Alabama is $5,904 per person, per year.

According to the BEA’s Person Consumption Expenditures report, the average yearly cost of healthcare per person in Alabama is $5,904.

After the Southwestern and Rocky Mountain states, the Southeast region of the United States has the third-lowest healthcare expenditures of any region in the country. Alabama has the second-lowest healthcare prices in the Southeast, trailing only South Carolina in affordability.

Although healthcare costs can vary depending on your age, health history, and location, you can reduce your costs by comparing insurance coverage from various companies.

Child Care

Average Child Care Costs in Alabama is $813 to $1,031 per child, per month.

No matter who you are, you cannot avoid childcare expenses when starting a family. Fortunately, according to the Economic Policy Institute, Alabama has the second-lowest childcare costs in the nation. Only Mississippi had less expensive childcare.

However, that in no way implies that child care is inexpensive. Childcare can cost thousands of dollars per month, depending on the kind of care you require. For young families when both partners must work, this can be very punishing.

The Alabama Department of Human Resources allows qualified families to apply for Subsidized Day Care Services if they need assistance with childcare fees.

  • Infant Classroom     $1,031
  • Toddler Classroom  $813
  • Home-based Family Child Care $822


The highest Marginal Tax Rate in Alabama is 5%

Alabama’s cost of living includes taxes, which cannot be avoided. When compared to neighboring southern states like South Carolina and West Virginia, which have top marginal tax rates of 7 percent and 6.5 percent, respectively, its top marginal tax rate isn’t too awful.

When compared to its neighbors, Alabama’s top marginal tax rate of 5% is standard, given that Kentucky and Mississippi have similar rates.

Is Alabama a Cheap State?

Alabama ranks third in terms of the overall low cost of living, with a cost of living index score of 87.9. The median property price in this area is $170,184, ranking second only to Mississippi.

What State Has The Lowest Cost Of Living?

According to worldpopulationreview.com, Mississippi has the lowest cost of living.


Prepare yourself for magnificent shorelines, affordable living, and some of the friendliest neighbors you’ll ever meet if you’re thinking about going to Alabama. You’re going to enjoy being a part of the real Alabama experience with its rich history, delectable cuisine, and enthusiasm for college sports.

People also search for Best Place To Live In Kentucky

FAQs about Alabama Cost of Living 2023

What is the average cost of living in Alabama?

According to the Bureau of Economic Analysis, a typical single person in Alabama may expect to pay $35,859 in annual living expenses. Alabama’s annual average cost of living is $35,859.

What is University of Alabama Cost of Living?

University of Alabama students pay $19,430 to live on campus, compared to the $14,951 national average.

Is Alabama a good state to live?

All four seasons are pleasant in Alabama. Inland streams and woodlands are just a couple of the state’s many scenic features. Both the cost of living and the price of real estate are low in Alabama. In the state, there are many well regarded colleges and many job prospects.



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