Montgomery, Alabama Housing Market Prices
Montgomery Home Prices and Rent at a Glance
The median home price (often called the average home price), rent costs, affordability metrics, and housing stock characteristics for this housing market.
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Median home price 2% below the Alabama median$156,725
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Median rent 8% above the Alabama median$1,086
Housing Market Overview
| Metric | Montgomery | Alabama Avg | US Average |
|---|---|---|---|
| Median Home Price | $156,725 | $160,474 | $248,835 |
| Price Trend (Annual %) | 9.5% | 6.3% | 7.5% |
| Median Gross Rent | $1,086 | $1,007 | $1,407 |
| Rent Trend (Annual %) | 3.6% | 4.2% | 5.1% |
| Household Income Trend (Annual %) | — | — | — |
The median home price in Montgomery is about 2% lower than in Alabama. Rent is about 8% higher than the Alabama average.
Median Home and Rent Price Trends
Median Home Prices, 2015-2024
Median Rent Prices, 2015-2024
Both home prices and rent are rising in Montgomery, up about 9.5% and 3.6% a year respectively. Home prices are changing faster.
Median rent in Montgomery rose about 34.1% between 2015 and 2024, from $810 to $1,086. Over the same span, rent in Alabama rose about 40.5%.
Affordability
On average, housing unit costs 2.8 yearly household incomes in Montgomery.
Buying the median-priced home in Montgomery costs roughly 12.0 years of rent at the median monthly rate. That is a relatively low price-to-rent ratio, which tends to favor buying over renting in Montgomery. The price-to-rent ratio in Alabama is about 13.3.
| Metric | Montgomery | Alabama Avg | US Average |
|---|---|---|---|
| Median Home Price | $156,725 | $160,474 | $248,835 |
| Median Household Income | $56,058 | $64,544 | $80,455 |
| Price-to-Income Ratio | 2.8 | 2.5 | 3.1 |
Home Prices vs Income Over Time
Between 2015 and 2024, the median home price in Montgomery rose about 125.7%, while median household income rose about 33.5% between 2009 and 2025 — the home price grew faster than income.
Income Growth vs Housing Cost Growth (Year-over-Year %)
Compare income and housing cost trends.
Occupancy & Tenure
| Metric | Montgomery | Alabama Avg | US Average |
|---|---|---|---|
| Homeownership Rate | 45.8% | 60.0% | 58.5% |
| Rental Rate | 39.8% | 25.5% | 31.2% |
| Vacancy Rate | 14.3% | 14.5% | 10.2% |
| Median Tenure (years) | 13.0 | 16.0 | 15.0 |
| Median Year Moved In | 2013 | 2010 | 2011 |
Montgomery has a homeownership rate of 45.8%, lower than the Alabama average of 60.0%. Its housing vacancy rate is 14.3%, compared with 14.5% in Alabama.
Housing Stock
| Metric | Montgomery | Alabama Avg | US Average |
|---|---|---|---|
| Average Household Size | 2.34 people | 2.48 people | 2.53 people |
| Median Structure Built Year | 1978 | 1985 | 1978 |
| Median Number of Rooms | 5.7 | 5.9 | 5.5 |
The typical housing unit in Montgomery was built around 1978. On average, 2.3 people live in a home with about 5.7 rooms, staying for about 13.0 years on average.
Frequently Asked Questions
Common questions about the housing market in Montgomery, Alabama.
What is the median home price in Montgomery, Alabama?
The median home price in Montgomery, Alabama is $156,725, lower than the Alabama average of $160,474.
What is the average home price in Montgomery, Alabama?
The typical home price in Montgomery, Alabama, reported as the median sale price, is $156,725. The median is used instead of a mathematical average because it is not skewed by a small number of very expensive or very cheap homes, so it better reflects what a typical buyer pays.
What is the median rent in Montgomery, Alabama?
The median gross rent in Montgomery, Alabama is $1,086 per month, higher than the Alabama average of $1,007.
What was the median gross rent in Montgomery in 2020?
In 2020, the median gross rent in Montgomery, Alabama was $898 per month.
What is the price-to-rent ratio in Montgomery, Alabama?
The price-to-rent ratio in Montgomery, Alabama is about 12.0, meaning it would take roughly 12.0 years of rent payments at the median rent to equal the median home price. That is a relatively low price-to-rent ratio, which tends to favor buying over renting in Montgomery.
Are home prices or rent rising faster in Montgomery, Alabama?
Both home prices and rent are rising in Montgomery, up about 9.5% and 3.6% a year respectively. Home prices are changing faster.
What is the homeownership rate in Montgomery, Alabama?
45.8% of households in Montgomery, Alabama own their home, lower than the Alabama average of 60.0%.
What is the vacancy rate in Montgomery, Alabama?
The housing vacancy rate in Montgomery, Alabama is 14.3%, lower than the Alabama average of 14.5%.
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