A settled farming people called the Mississippian Culture lived in the land that would one day be called Alabama for nearly 1000 years. The tribes at the time of contact included Koasati, the Creek, the Choctaw, the Chickasaw, the Alibamu and the Cherokee. The state was named after the Alibamu people. 

 The Spanish reached Alabama in the 16th century, but it was first colonized by the French some 160 years later. Alabama became part of British West Florida in 1763, and became Spanish territory between the American Revolution and 1813. Parts of Baldwin and Mobile Counties joined the Republic of West Florida in 1810, only to join the Mississippi Territory in 1812. It became the state of Alabama in 1819.

According to the 2020 census, just over 5,024,000 people live in Alabama, up from less than 4,780,000 in 201o. As of 2019, there were over 2,280,000 individual housing units in the state of Alabama, and nearly 7 in 10 of them were owner-occupied. 

As a whole, the state is growing rapidly. More than 19,900 building permits were issued county-wide in 2020. It should not be difficult to buy or rent a condo in Alabama, or to build a new property to suit your investment or lifestyle needs. Roughly 87% of Alabama residents have high school diplomas, and around 26% have a Bachelor’s degree or higher. 

Alabama is a warm, southern state, and almost all of it falls into the ‘Humid Subtropical’ climate classification. The state’s warm, gentle weather is one of the main reasons Alabama real estate for sale moves so quickly these days. The weather in the south of the state comes off the warm Gulf of Mexico, while the Appalachian Mountains tend to cool the northerly counties. On average, the state of Alabama receives around 56 inches of rain each year, with dramatic thunderstorms common in the southern counties.

Birmingham, AL

If you are buying a house in Alabama, Birmingham should be one of the places you look first. It boasts a population of 200,733, making it the 2nd largest city in the state, just behind Huntsville. Real estate in Birmingham, Alabama is relatively inexpensive, with a median house value of $97,500. However, rental incomes are relatively high, with median gross rent at $870 per month. 

Living in Birmingham, you’ll have access to the historic Alabama Theater, The Alys Stephens Center for the Performing Arts, Birmingham CrossPlex and the Fair Park Arena, The Wright Center Concert Hall and a recently renovated $55-million "Uptown" entertainment district. The city also boasts several museums.

Huntsville, AL

Huntsville is the largest city in Alabama at 215,006 people as of the 2020 census. This is up substantially from the 2010 census, when the population was only 180,105. As you can imagine, Huntsville has one of the hottest markets for real estate in Alabama. Median home values are at $184,500 and median gross rent is $868. 

Residents of Huntsville have access to dozens of museums, more than 60 city parks, 6 golf courses and a thriving arts and culture scene bolstered by the Huntsville Art League and Museum Association. 

Mobile, AL

Mobile, Alabama has a population of 187,041 (as of the 2020 census), but it is the center of the Mobile metropolitan Area, with more than 412,000 residents. The total population within 60 miles of Mobile is 1,262,907. Mobile is a popular place to buy real estate in Alabama because of its thriving ship building, aerospace and manufacturing industries, especially around the Port of Mobile, the 12th largest in the country. Mobile is a major focus for anyone buying mobile homes in Alabama.

 Mobile residents and visitors can enjoy the city’s famous Mardi Gras celebrations, explore the recently expanded Mobile Museum of Art, attend the historic Saenger Theater, see the USS Alabama at battleship memorial park or explore any of a dozen public museums in the city. 

• Birmingham was recently voted the #1 Best City for Millennial Entrepreneurs. It also boasts the 2nd lowest property taxes in the region, and has the 3rd largest banking center in the Southeast.  
• Property prices are rising, especially in the urban areas. In some places, median home sales figures have risen by as much as 12% per year. It is a good time to be involved in Alabama real estate. 
• Alabama’s Thriving Economy. Fortune 500 companies like Energen, HealthSouth, Vulcan Materials, Protective Life and Regions Financial anchor the economy, and the region’s economy demands skilled workers at an ever-increasing rate – and therefore demand for single-family homes.      
• Alabama’s Art and Culture. Alabama is the heart of Mardi gras culture in America, but it doesn’t end there. Anyone buying real estate in Alabama should take the time to explore local festivals and events like the Jewish Food Festival & Treasure Market in Montgomery, the Annual Christmas Lighted Boat Parade along the Gulf Shores, or the Moss Rock Festival in Hoover.

Almost anyone could be happy living in Alabama, and its combination of low prices and a strong economy make it a great place to invest. However, each is a very personal decision. A homeowner might fall in love with the state for its easy access to natural beauty and its welcoming culture. 

However, another might disagree – maybe they hate Mardi Gras for some reason. An investor might stack up a very profitable portfolio in any of the state’s thriving metropolitan areas, but no one is guaranteed to pick a winner every time. The market for real estate in Alabama, just like anywhere else, can be treacherous. Get good advice, and be sure you’re making choices that are in your best interest, as well as those of your family.