Alabama Home Buyers In These Two Cities Will Pay Over $680,000 For a House In 2033, Per Study

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(Alabama)- As Alabama residents, many of us take pride in the growth and prosperity of our state's thriving cities. However, a recent report from Nasdaq has shed light on a concerning trend that could impact housing affordability in some of Alabama's most desirable locations.

Expensive Alabama Living

Located on the eastern shore of Mobile Bay, the city of Daphne is currently experiencing robust growth. In June 2023, the median home value in Daphne was $344,919, with a projected one-year growth rate of 8.5%. However, the report suggests that by 2024, the projected median home value could reach $374,237 - just $2,901 below the projected U.S. median of $371,336.

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Looking further ahead, the forecast is even more concerning. By 2033, the report estimates that the median home value in Daphne could skyrocket to $779,857, pricing many residents out of the local housing market.

Similarly, Huntsville, known as the "Rocket City" for its role in the U.S. space program, is also facing affordability challenges. In June 2023, the median home value in Huntsville was $308,155, with a one-year projected growth rate of 8.3%.

The report indicates that by 2030, the projected median home value in Huntsville could reach $538,478 - just $2,722 above the projected U.S. median of $535,756. And by 2033, the forecast median home value in Huntsville is expected to climb to $683,995.

Trouble Coming to Alabama

Earlier this week, I published an article about the challenge faced by Alabamians earning the state's minimum wage of $7.25 per hour. It illustrated that individuals earning this wage would need to work a total of 96 hours per week to afford a one-bedroom apartment.

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According to ZipRecruiter, the average salary for Alabamians in 2023 was $49,274, which equates to approximately $24 per hour. Unfortunately, this average salary falls short of the minimum annual income needed to purchase a home in Alabama, which Realtor estimates to be $76,826.

As property values soar and wages struggle to keep pace, the dream of owning a home is slipping further from the grasp of working families in Alabama. This alarming trend not only poses a threat to individuals' financial well-being but also to the overall stability and vibrancy of our communities.

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