City Profile
Homewood, Alabama
USA · Comprehensive city data and intelligence
Homewood, Alabama, is a vibrant and desirable city located just south of downtown Birmingham, known for its tree-lined streets, strong community feel, and excellent quality of life. The city's character is often described as a blend of historic charm and modern amenities, attracting a diverse population including young professionals and families. Its strategic location offers residents convenient access to major employment centers, top-tier healthcare facilities, and a thriving cultural scene in the greater Birmingham metropolitan area. Many people are drawn to Homewood for its highly-regarded public school system and its emphasis on local businesses and community engagement.
Alabama, located in the southeastern United States, is characterized by its Southern charm, rich history, and diverse natural beauty, ranging from the Appalachian foothills to Gulf Coast beaches. The state's economy has diversified beyond its agricultural roots, with major industries now including automotive manufacturing, aerospace, healthcare, banking, and steel production. Living in Alabama generally offers a low cost of living, particularly for housing, which is significantly below the national average. The climate is humid subtropical, featuring hot, humid summers and mild winters with ample sunshine for much of the year, supporting an outdoor-oriented lifestyle.
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Cost of Living
The cost of living in Homewood, AL, is generally considered more affordable than the national average, with an overall cost of living index of approximately 91.5 compared to the national average of 100. However, housing costs in Homewood are notably higher than the broader Birmingham metropolitan area, which is the primary factor driving up the overall cost of living within the city itself. Despite this, other expenses such as groceries, utilities, and transportation tend to be more in line with or even below the national average, making Homewood an attractive option for those seeking a high quality of life without the extreme costs found in many larger U.S. cities. Property taxes, in particular, are often a fraction of what one might pay in other major American metros.
Income
Salary Insights
Homewood's economy is robust, with an employed population of 14,318 as of 2024, experiencing a job growth rate of 1.38% from 2023 to 2024. The city's job market is significantly driven by key sectors such as Health Care & Social Assistance, Professional, Scientific, & Technical Services, and Educational Services. Major employers in the broader Birmingham area, including the University of Alabama at Birmingham (UAB) and its associated medical facilities, are easily accessible from Homewood, contributing to a strong professional job market. The unemployment rate in Homewood stood at a low 2.1% in April 2026, indicating a healthy and competitive job environment.
The average salary in Homewood is $65,695 per year. You would need approximately $55,000 to live comfortably.
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Transport
Transportation in Homewood is primarily car-dependent, with 82% of residents traveling by personal vehicle. The city is well-connected by major arteries like US-31 and I-65, offering relatively easy access to downtown Birmingham and surrounding areas. The average commute time for Homewood residents is 17.1 minutes. While public transit options are limited, with only 1% of residents relying on it, Homewood is noted for its walkability, especially in its commercial districts and residential areas close to amenities. This walkability allows some residents to access shops, restaurants, and parks without needing a car.
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