An analysis of Alabama’s housing market based on the Zillow Home Value Index data reveals several striking patterns across the state’s major metropolitan and regional centers. The stark contrast between Auburn’s robust home values at $595,686 and Gadsden’s modest $96,982 highlights the significant economic disparities within the state. Most notably, 18 of the 20 cities analyzed show positive growth projections for 2025, suggesting broad economic resilience despite regional variations. The coastal and university towns generally command higher property values, while the traditional industrial centers and rural regional hubs maintain more moderate prices. Particularly noteworthy is the negative growth forecast for historic cities like Selma (-3.90%) and Troy (-1.20%), which stand in sharp contrast to the growth expected in technology-focused Huntsville (2.40%) and tourism-driven coastal Daphne (2.40%).
The geographical distribution of home values reveals interesting patterns, with the highest concentrations of property value found in university towns, coastal areas, and technology hubs. College towns like Auburn and urbanized areas near military installations consistently show stronger housing markets, while cities in the Black Belt region generally demonstrate more modest valuations. The growth projections suggest a continuing trend of economic divergence between Alabama’s emerging technology and education centers and its traditional manufacturing and agricultural hubs. The data also indicates that proximity to major interstate corridors and military installations continues to play a crucial role in supporting property values and growth prospects.
1. Selma, AL
Current home values in historic Selma stand at $347,334, but a projected decline of 3.90% suggests a fall to $333,788 by late 2025. Situated along the Alabama River in the state’s Black Belt region, Selma serves as the county seat of Dallas County and played a pivotal role in the Civil Rights Movement. The city’s economy centers around manufacturing, particularly in the paper and timber industries.
2. Troy, AL
Troy’s housing market shows a current value of $423,299, with a projected 1.20% decrease bringing values to $418,219 by 2025. Located in the southeastern portion of Alabama, Troy sits as the county seat of Pike County and serves as a cultural hub between Montgomery and Dothan. The city’s economy is anchored by Troy University and aerospace manufacturing.
3. Anniston, AL
Home values in Anniston currently average $129,424, with a minimal growth of 0.10% projecting to $129,554 by 2025. Nestled against the foothills of the Appalachian Mountains, Anniston boasts both urban amenities and outdoor recreation opportunities in northeast Alabama. The city’s economic foundation rests on healthcare services and military-related industries tied to the former Fort McClellan.
4. Tuscaloosa, AL
Tuscaloosa’s housing market currently reflects values of $216,643, with a modest 0.50% growth pointing to $217,726 by 2025. Home to the University of Alabama, this vibrant city stretches along the Black Warrior River in west-central Alabama. The city’s economic backbone combines higher education with automotive manufacturing, particularly through the Mercedes-Benz plant.
5. Montgomery, AL
The capital city’s housing market shows current values of $140,407, with a 1.20% growth suggesting $142,092 by 2025. Positioned in the heart of Alabama’s River Region, Montgomery combines historical significance with modern development as the state capital. Government services, Maxwell Air Force Base, and a growing tech sector drive the local economy.
6. Cullman, AL
Cullman’s housing market reflects current values of $240,309, projecting to $243,192 with a 1.20% growth rate by 2025. Located halfway between Birmingham and Huntsville along I-65, Cullman maintains its German heritage while embracing modern growth. Agricultural technology and automotive manufacturing form the backbone of local industry.
7. Birmingham, AL
Birmingham’s housing market shows values at $125,889, with a 1.30% increase suggesting $127,525 by 2025. As Alabama’s largest city, Birmingham sprawls through Jones Valley, surrounded by the southern tail of the Appalachians. The city has transformed from its steel-making past to become a medical research and banking powerhouse.
8. Ozark, AL
Current home values in Ozark stand at $296,549, with 1.40% growth projecting to $300,701 by 2025. Positioned in the Wiregrass region of southeast Alabama, Ozark serves as the county seat of Dale County and sits near Fort Rucker. Aviation training and aerospace maintenance drive the local economy.
9. Auburn, AL
Auburn boasts the highest home values in our analysis at $595,686, with 1.70% growth suggesting $605,812 by 2025. Located in east-central Alabama, Auburn combines college-town charm with high-tech innovation as home to Auburn University. Research and development, particularly in aerospace and biotechnology, fuel the local economy.
10. Enterprise, AL
Enterprise’s housing market shows current values of $209,274, projecting to $213,041 with 1.80% growth by 2025. Situated in the Wiregrass region of southeast Alabama, Enterprise is known for its unique Boll Weevil Monument and proximity to Fort Rucker. Military aviation training and agricultural technology drive the local economy.
11. Mobile, AL
Mobile’s housing market reflects values of $187,554, with 1.90% growth suggesting $191,117 by 2025. As Alabama’s only saltwater port, Mobile combines coastal charm with industrial might along the Gulf of Mexico. Shipbuilding, aerospace manufacturing, and steel production form the city’s economic foundation.
12. Dothan, AL
Dothan’s current home values stand at $190,872, projecting to $194,499 with 1.90% growth by 2025. Known as the “Peanut Capital of the World,” Dothan anchors the southeastern corner of Alabama near the Florida and Georgia borders. Food processing and distribution, along with medical services, drive the local economy.
13. Decatur, AL
Decatur’s housing market shows values of $293,283, with 2.10% growth suggesting $299,441 by 2025. Straddling the Tennessee River in north Alabama, Decatur combines heavy industry with river commerce. Manufacturing, particularly in chemicals and food processing, forms the backbone of local industry.
14. Gadsden, AL
Gadsden presents the lowest home values in our analysis at $96,982, projecting to $99,018 with 2.10% growth by 2025. Nestled in a scenic valley along the Coosa River in northeast Alabama, Gadsden serves as a gateway to the Appalachian foothills. Advanced manufacturing and automotive suppliers drive the local economy.
15. Huntsville, AL
Huntsville’s housing market reflects values of $268,120, with 2.40% growth projecting to $274,555 by 2025. Known as “Rocket City,” Huntsville dominates north Alabama’s high-tech landscape at the foot of Monte Sano Mountain. Aerospace, defense contracting, and biotechnology research form the city’s economic powerhouse.
16. Daphne, AL
Daphne’s housing market shows current values of $319,548, with 2.40% growth suggesting $327,217 by 2025. Perched along the eastern shore of Mobile Bay, Daphne combines coastal living with easy access to Mobile’s industrial might. Tourism, healthcare, and retail services drive the local economy.
17. Florence, AL
Florence’s housing market reflects values of $209,300, projecting to $214,742 with 2.60% growth by 2025. Anchoring the Shoals area in northwest Alabama, Florence straddles the Tennessee River and boasts a rich musical heritage. Fashion design, healthcare services, and educational institutions form the economic foundation.
18. Albertville, AL
Albertville’s current home values stand at $197,857, with 2.70% growth suggesting $203,199 by 2025. Positioned in the heart of Sand Mountain in northeast Alabama, Albertville serves as a commercial hub for Marshall County. Poultry processing and manufacturing drive the local economy.
19. Talladega, AL
Talladega’s housing market shows values of $149,971, projecting to $154,170 with 2.80% growth by 2025. Nestled in the foothills of the Talladega Mountains, the city is world-famous for its superspeedway and natural beauty. Motorsports tourism and automotive-related industries fuel the local economy.
20. Scottsboro, AL
Scottsboro’s housing market reflects current values of $202,557, with 3.50% growth projecting to $209,647 by 2025. Tucked between the Tennessee River and the Cumberland Plateau in northeast Alabama, Scottsboro combines natural beauty with small-town charm. Recreation tourism and manufacturing, particularly in textiles and electronics, form the backbone of local industry.
