Breaking Down the Cost of Living in Lower Alabama

Are you curious about the cost of living in Lower Alabama? This guide breaks down all the essential expenses, from housing and utilities to food and healthcare, providing a clear picture of what it’s like to live in this charming region.

The Cost of Living in Lower Alabama

Cost of Living in Lower Alabama

Housing Costs

Understanding housing costs is crucial when considering the cost of living in Lower Alabama. In Baldwin County, the average single-family home costs around $400,000, while beach houses can reach up to $700,000. In Mobile County, homes average about $230,000. Current mortgage interest rates range from 6.5% to 7.5%. For a $400,000 house with a 20% down payment and property taxes of $1,200/year, expect monthly mortgage payments around $2,500.


Monthly utility bills are another key component of the cost of living in Lower Alabama. Electricity costs range from $250 in cooler months to $400 in summer. Combined costs for gas, trash, water, and sewer are about $100/month. High-speed fiber internet is available for around $65/month, with competitive rates from various providers.

Food and Dining

Food expenses are a significant part of the cost of living in Lower Alabama. A family of five, including pets, spends approximately $900/month on groceries. Dining out can add another $100-$200/month. Good news: Alabama recently reduced the sales tax on food from 4% to 3%, with a potential further drop to 2%.

Transportation and Auto Insurance

Transportation costs are relatively low, contributing to the affordable cost of living in Lower Alabama. Car insurance, gas, and vehicle registration tend to be cheaper here than in states like Illinois and Florida, though individual costs may vary.


Healthcare is another affordable aspect of the cost of living in Lower Alabama. The state ranks as the 4th cheapest for healthcare, with many residents enjoying employer-provided insurance. Veterans have access to VA facilities in Pensacola, Mobile, and Biloxi.

Miscellaneous Expenses

Other expenses like clothing and recreational activities are also modest. Due to the warm climate, spending on clothes is minimal. Golf enthusiasts will find affordable options at local courses, with discounts for veterans at places like Magnolia Springs, Lakewood, and Rock Creek.

Property Taxes

One of the biggest advantages of living in Lower Alabama is the low property taxes. This significantly reduces the overall expenses compared to other coastal regions.

Ready to Move to Lower Alabama?

If you’re considering a move and want to dive deeper into ttoday’s blog topic, watch our video below.

Thinking about relocating? Contact us today! As local realtors specializing in Lower Alabama, we’re here to help you find the perfect home. Let’s make your dream of living in this beautiful region a reality!

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