Is it cheaper to buy or rent in Birmingham in 2026?
If you're deciding whether to buy or rent a home in Birmingham in 2026, you're not alone. What used to be a simple answer has become more difficult as the economy continues to drift from historical norms.
Previously, it was common knowledge that buying was the more affordable choice, with long-term benefits generally outweighing the initial costs. But that assumption has shifted. After the pandemic threw housing markets off kilter, prices ballooned and mortgage rates climbed, straining affordability nationwide. Now, the typical buyer needs to earn far more than the typical renter to afford a median-priced home in many cities, leading the homeowner population to stall.
So what does buying vs. renting look like in Birmingham right now? To find out, Redfin Real Estate looked at the income required to afford a typical home over a typical apartment—called the "income premium." For example, an income premium of 10% means a household needs to earn 10% more to buy than to rent, while a premium of -10% means renting is cheaper than buying.
Note: All data is a monthly average for the month of December 2025. Rental data comes from a partnership with Zillow; median income data comes from the U.S. Census.
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...EXTREME COLD WARNING NOW IN EFFECT FROM MIDNIGHT TONIGHT TO NOON
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* WHAT...For the Extreme Cold Warning, dangerously cold wind chills
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* WHERE...Autauga, Bibb, Blount, Chilton, Dallas, Etowah, Fayette,
Greene, Hale, Jefferson, Lamar, Lowndes, Marengo, Marion, Perry,
Pickens, Shelby, St. Clair, Sumter, Tuscaloosa, Walker, and
Winston Counties.
* WHEN...For the Extreme Cold Warning, from midnight tonight to noon
CST Sunday. For the Wind Advisory, from 2 AM to 9 PM CST Saturday.
* IMPACTS...Gusty winds will blow around unsecured objects. Trees
could be blown down and a few power outages may result. Frostbite
and hypothermia will occur if unprotected skin is exposed to these
temperatures. An extended period of subfreezing temperatures could
cause pipes to burst.
PRECAUTIONARY/PREPAREDNESS ACTIONS...
Winds this strong can make driving difficult, especially for high
profile vehicles. Use extra caution.
Secure outdoor objects.
Dress in layers including a hat, face mask, and gloves if you must
go outside.
Keep pets indoors as much as possible.
Make frequent checks on older family, friends, and neighbors. Ensure
portable heaters are used correctly. Do not use generators or grills
inside.
To prevent freezing and possible bursting of pipes they should be
wrapped, drained, or allowed to drip slowly.
&&
...EXTREME COLD WARNING NOW IN EFFECT FROM MIDNIGHT TONIGHT TO NOON
CST SUNDAY...
...WIND ADVISORY IN EFFECT FROM 2 AM TO 9 PM CST SATURDAY...
* WHAT...For the Extreme Cold Warning, dangerously cold wind chills
below zero are expected. For the Wind Advisory, northwest winds 15
to 25 mph with gusts up to 40 mph expected.
* WHERE...Autauga, Bibb, Blount, Chilton, Dallas, Etowah, Fayette,
Greene, Hale, Jefferson, Lamar, Lowndes, Marengo, Marion, Perry,
Pickens, Shelby, St. Clair, Sumter, Tuscaloosa, Walker, and
Winston Counties.
* WHEN...For the Extreme Cold Warning, from midnight tonight to noon
CST Sunday. For the Wind Advisory, from 2 AM to 9 PM CST Saturday.
* IMPACTS...Gusty winds will blow around unsecured objects. Trees
could be blown down and a few power outages may result. Frostbite
and hypothermia will occur if unprotected skin is exposed to these
temperatures. An extended period of subfreezing temperatures could
cause pipes to burst.
PRECAUTIONARY/PREPAREDNESS ACTIONS...
Winds this strong can make driving difficult, especially for high
profile vehicles. Use extra caution.
Secure outdoor objects.
Dress in layers including a hat, face mask, and gloves if you must
go outside.
Keep pets indoors as much as possible.
Make frequent checks on older family, friends, and neighbors. Ensure
portable heaters are used correctly. Do not use generators or grills
inside.
To prevent freezing and possible bursting of pipes they should be
wrapped, drained, or allowed to drip slowly.
&&
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7 PM
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