I
n the heart of Alabama, a paradox exists. While the state boasts some of the most affordable housing options in the country, certain areas are experiencing a surge in luxury real estate prices. One city stands out as a bastion of wealth, with a typical home value that's a staggering seven-figure sum.
Mountain Brook, affectionately known as "The Tiny Kingdom," reigns supreme as Alabama's priciest city to buy a home. As of February, the median single-family residence in this affluent suburb south of Birmingham was valued at approximately $936,000, according to Zillow data. No other city comes close to matching Mountain Brook's opulence.
Just behind the top spot are two popular vacation destinations: Orange Beach and Equality, a tiny town nestled on the shores of Lake Martin. Both cities boast median home values just above $680,000, making them hotspots for those seeking luxury lakefront living.
The Birmingham metro area dominates the list, with six cities in the top 20 and five in the top 10, including Mountain Brook at the helm. Other notable suburbs like Vestavia Hills (No. 6), Homewood (No. 7), and Hoover (No. 16) also made the cut. Indian Springs Village (No. 4) and Lake Purdy (No. 8), smaller but affluent areas to the south, round out the list.
Baldwin County, home to Alabama's beaches and a rapidly growing metro area, saw four cities make the list: Orange Beach, Fairhope (No. 10), Gulf Shores (No. 13), and Spanish Fort (No. 19). Just across the Bay, Mobile County's Dauphin Island ranked 12th.
In contrast, the Huntsville area is home to only one city in the top 20: Owens Cross Roads, which ranked 14th with a median home value of approximately $422,000. Even at this relatively high price point within Alabama, Mountain Brook still lags behind some of the country's most expensive cities – it ranks as the 708th priciest in the nation.
Statewide, the typical Alabama home is valued at around $223,000, making it one of the cheapest states in the country. In fact, Alabama's median home value exceeds only a handful of states, including Iowa, Kentucky, and Arkansas.
