Cost of Living in Alabama Cities: These Are the Top 5

Updated On October 6, 2023
Alabama Montgomery Aerial View

Alabama is a state in the Southeastern region of the United States and the 30th largest by area.

Furthermore, this state is the 24th-most populous of the U.S. states.

Another interesting fact is that the state is known for its iron and steel natural resources, sweet tea, southern hospitality, and football.

That is why it seems to be an attractive place to live.

But, what about the cost of living in this state, or as someone says – Cotton State (nickname for Alabama).

In the text below, you will find the most important things about the cost of living in Alabama, as well as the five most expensive cities in this state.

So let’s begin.

Is Alabama a Good Place to Live?

First of all, when you think about any state for living, you are asking yourself about the costs of living.

What are the utilities for monthly basics and, are there any fascinating things to do in this state.

Utilities in Alabama are not the least bit more expensive than utilities anywhere else in America.

Of course, they vary wildly, depending on how much you use electricity and gas, the size of your home, and of course, what time of year.

However, we can say that in this state, it is calculated a rough 135$ per month for an apartment of around 60 m2, including bills for electricity, gas, water, and heating.

The price for an Internet connection is around $59.37.

As for activities to do, no matter where in Alabama cities you choose to live, there are always exciting things to do.

That is why this state is so engaging for living.

Regarding sports, Alabama has several minor league professional and semi-professional teams, including three minor league baseball teams.

Compared to the average salaries, we can say that sports and leisure activities are not so expensive.
For example, membership in a gym or a fitness club will cost you around 30$.

Cinema tickets are around $10.

The above prices are not so high compared to the costs of the other States in the U.S.

Restaurants, Supermarkets, and Transportation


When it comes to Alabama, this state definitely has a variety of places to eat and many supermarkets where you can buy food.

All of the restaurants in each city have been serving delicious food in a friendly and warm atmosphere.

Due to different types of restaurants such as rustic steakhouses, seafood restaurants, Italian cafes, and BBQ joints, it was supposed that the restaurant prices would grow.


As we mention supermarkets, there is no word that it is cheaper than eating out daily.

Markets in Alabama always offer fresh goods, homemade jellies, and other perfect little gifts.
But compared to prices in Europe, prices in Alabama Cities are higher.

On the other hand, the prices for Fresh fruits and vegetables are widely available and inexpensive compared to prices in another state in the U.S.


The last one – transport is almost similar to the rest of the states in the U.S.

Alabama has multiple forms of transportation for everyone – public transit, bikes, and even scooters.

Public transit options are available everywhere in Alabama and definitely, are the most affordable means of transport here.

Gasoline (1 liter) is $0.57, and the monthly public transit pass is $46.33, which is a high price if you are required to take a monthly ticket every month of the year.

The Top Five Expensive Cities in This State

So, we have to notice that there are so many differences from city to city about prices.

Here are the top five expensive cities in this state, which are assuredly the most expensive cities in Alabama.

Orange Beach

Orange Beach is a lovely sub-tropical area, and the climate is very nice.

However, it is a great place to visit, but you wouldn’t want to live here.

It is the most expensive city in Alabama.

For example, the average rent for a one-bedroom apartment here is $1.116.

Moreover, the average home cost is the most critical part of the cost of living difference.

Compared to the national average price, Orange Beach is 23% above the national average price of homes for sale (the average price of homes for sales in this city is $558,814).

Vestavia Hills

The average cost of living in this city is $1787, which is in the top 14% of the most expensive cities in the world.

One-bedroom apartment in the downtown area, 40 m2 for rent, with utilities included, is $1067.

Local transport tickets in Vestavia Hills are $2.13, and cinema tickets for one person are amazing $11.2.

Above all, a doctor’s visit in this city can cost you $107.


In Hoover, the average cost of living is $1792, which is in the top 10% of the most expensive cities in the world.
In this city the prices for a restaurant are the highest, comparing the other prices in other cities.

For instance, dinner in a restaurant for two people could cost you $53.9.

Also, renting an apartment has an enormous price.

One-bedroom apartment in Downtown, 40 m2 for rent and utilities included are $1086.

As for local transport, prices for tickets are similar to prices for tickets in Vestavia hills, and so are cinema tickets.


This city is reputed to be one of the most attractive cities in the South.

People here are so inviting and friendly.

There is no doubt that Fairhope is a magnificent place to live, but what is the cost of living, really?

Let’s see the total cost of housing, child and health care, food, transportation, and taxes.

All of that mentioned above, for a single adult in Fairhope, is $39,425 a year.

Renting is a seldom lower-cost option to homeownership.

In Fairhope, the price for renting on monthly basics is $1,096.

As to the national average price for home sales, the national average cost for homes is $451,501.

While living costs are a bit higher for some categories, especially housing, health, utilities, and transportation are lower than other cities in this state.

For a single adult living in the area, average health care costs come out to $4,620 per year, compared to an average of $4,769 across Alabama and $4,266 nationwide.

In Fairhope, a single adult spends an average of $3,574 on food annually, and a family of four spends $10,321 on average.

Gulf Shores

All the beauties and spoils of Gulf Shores come at a cost, and it is so essential if you decide to live here.

The most expensive part of living in this city is housing.

The average price for home sales is $440,001.

As for child and health care costs, as well as utilities, we can say that they are approximately the same compared to Fairhope.

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1 Comment on Cost of Living in Alabama Cities: These Are the Top 5

  1. Living in Alabama cities is affordable and provides great value for the cost.

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