Looking to buy a home in Alabama?

Data says it may be easier if you aren’t looking alone.

As housing costs continue to climb, more than half of the U.S. markets require a six-figure household income to afford a median priced home, according to a recent report from Realtor.com.

In Alabama, this figure sits slightly lower at $90,000.

This comes in far above the average median household income, which was just over $62,000 as of 2023, according to the Census.

But that number does increase with each additional member of the home, peaking among 4-person households at $97,967.

A higher income bracket is more common among family households than non-family households, according to a recent Neilsberg report.

In Alabama the largest percentage of family households (14.34%) earn $75,000 to $99,999, making families more likely to fall within the income bracket to afford a home.

But single people or young couples looking for a home right now can still find a good deal if they utilize their resources, according to Birmingham realtor Chris Prichard.

“Consulting with one or more lenders, realtors, CPAs and other professionals in addition to assessing one’s personal goals and needs are key to figuring out what makes sense for one’s situation,” she said previously.

The future of housing costs

U.S. News and World Report predicts a flattening of housing price increases over the next five years but warned first-time buyers that affordability will continue to remain a challenge.

“After remaining somewhat flat in 2023 but rising more sharply in 2024, home prices are forecast to rise much more slowly by the end of 2025 – and may fall in numerous markets in the South and Southwest as they shift more to buyer’s markets,“ the report reads.

“From year-end 2025 through 2030 – and given the large run-up from 2021 through now – home prices are predicted to rise at or slightly above the rate of inflation, for an estimated increase of about 10% to 11%.”