MONTGOMERY, Ala. — Alabama’s housing market faced a sharp downturn in 2024, with home sales plummeting by 18% compared to the previous year, according to the Alabama Association of Realtors. The state recorded just 62,539 home sales, a stark drop from 76,258 in 2023, marking one of the most challenging years for the market in recent memory.
Economists point to persistently high mortgage rates—hovering above 6% throughout the year—as a key factor behind the decline. These elevated rates, driven by Federal Reserve policies aimed at curbing inflation, have made homeownership less affordable for many Alabamians.
While mortgage rates are influenced by broader economic forces, critics argue that Republican-led policies at both the federal and state levels exacerbated the crisis. The Fed’s aggressive rate hikes in 2022 and 2023—initiated under GOP-appointed leadership—were intended to combat inflation but have disproportionately hurt middle- and working-class families trying to enter the housing market. Meanwhile, Alabama’s GOP-controlled legislature has done little to address the affordability crisis or invest in housing solutions for residents.
Despite declining sales, home prices in Alabama remained stable, with the median sales price increasing slightly to $216,744. Active listings surged by nearly 34%, reflecting weaker demand as homes spent more time on the market. However, this increased inventory offers little solace to prospective buyers unable to secure affordable financing.
As Alabama’s housing market struggles to recover, calls are growing for state leaders to prioritize policies that support affordable housing and economic relief for families. Without meaningful intervention, many fear that high mortgage rates and stagnant wages will continue to push homeownership out of reach for everyday Alabamians.