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Montgomery, AL housing market
Housing market indicators
| Indicator | 2022 | 2023 | 2024 | 2025* | Change | 2022 | 2023 | 2024 | YTD |
|---|---|---|---|---|---|---|---|---|---|
| Median Listing Price per Square Feet | $120 | $133 | $129 | $129 | 18.8% | 10.8% | -3% | 0% | |
| Active Listing Count | 766 | 903 | 1,131 | 1,289 | 58.3% | 17.9% | 25.2% | 14% | |
| Median Days on Market | 61 | 68 | 75 | 67 | 27.1% | 11.5% | 10.3% | -10.7% | |
| Share of listings with price increase | 1% | 0.8% | 0.8% | 0.8% | |||||
| Share of listings with price decrease | 10.3% | 14.3% | 14.5% | 15.3% | |||||
* last available value
Home prices
Short term housing supply drivers
Long term housing demand drivers
Long term housing supply drivers
Note: 12M MA - 12 months moving average, Permits - New Private Housing Structures Authorized by Building Permits. Source: FRED
Housing market overview
Montgomery, AL MSA Overview and Key Areas
- The Montgomery Metropolitan Statistical Area (MSA) includes Montgomery County, Autauga County, Elmore County, and Lowndes County, covering approximately 7,030 km² with a 2024 estimated population of 387,885.
- Major cities and towns: Montgomery (core city, population 195,818 in 2025 projection, declining -0.15% annually), Prattville (growing, added 2,300 since 2020), Millbrook (growing), Wetumpka (growing), Pike Road (fastest-growing by percentage, added nearly 2,000 since 2020).
- Key geographic regions: Central urban core (Montgomery city), northern suburbs (Prattville, Millbrook in Autauga/Elmore Counties), eastern suburbs (Wetumpka, Pike Road in Elmore County), rural south (Lowndes County).
- Overall MSA population up slightly to 387,885 in 2024 from 386,056 prior year, but central Montgomery declining while suburbs grow.
| Area | City/town | Population | Density | Income (high/low/...) | Quality of Schools (GreatSchools rating range) | Crime level | Property tax (%) | Comments |
|---|---|---|---|---|---|---|---|---|
| Central | Montgomery | 195,818 (2025) | High urban | Low-median ($55,687 household median) | 4-7 | High | 0.4-0.7% (county avg) | Declining pop -2.11% since 2020, 20.89% poverty |
| North | Prattville | ~42,000 (growing +2,300 since 2020) | Medium suburban | Median-high | 6-9 | Medium-low | 0.4-0.6% | Industrial base, family-oriented growth |
| North | Millbrook | ~16,000 (growing) | Medium suburban | Median | 5-8 | Low | 0.4% | Affordable suburbs, proximity to Montgomery |
| East | Wetumpka | ~8,000 (growing) | Low-medium | Median | 6-8 | Medium | 0.4-0.5% | River town, recreational appeal |
| East | Pike Road | ~10,000 (growing +2,000 since 2020) | Low suburban | High | 8-10 | Low | 0.4% | Upscale, fastest % growth in MSA |
| South Rural | Lowndes Co areas | 9,726 (county) | Low rural | Low | 3-6 | High | 0.4% | Sparse, agriculture-focused |
To view all table columns, please open this table on a laptop or desktop screen.
Citizens: Income and Education
- MSA median age 37.1; Montgomery city median household income $55,687, per capita $41,474, poverty 20.89%.
- Income varies: Central Montgomery low-median, suburbs like Pike Road high; married families median $104,123 vs non-families $40,368.
- Racial composition MSA-wide (2020): White 47%, Black/African American 43%, Asian 2.5%, other/multiracial balance.
- Montgomery city: 63% Black, 28% White, 3% Asian; education levels lower in core (high school+ ~88%, bachelor's ~25% inferred from income/poverty).
- Suburbs higher education/income correlation; overall MSA bachelor's attainment ~28-32% based on metro averages.
Key Economic Sectors
- Government: State capital drives employment (largest sector).
- Defense/military: Maxwell-Gunter AFB, major employer.
- Manufacturing: Automotive (Hyundai nearby influence), aerospace.
- Healthcare: Baptist Health, Jackson Hospital systems.
- Education: Universities like Alabama State, Auburn Montgomery.
- Retail/logistics: Growing distribution hubs in suburbs.
Housing Buying Market: Supply Drivers
- Zoning: Moderately open in suburbs (Autauga/Elmore Counties allow single-family growth); stricter in Montgomery core for historic preservation.
- Regulatory strictness: Low-moderate; Alabama minimal state regs, local permitting 3-6 months for residential.
- Construction workforce: Available, low cost (~$25-35/hr labor vs national $40+); ample local contractors.
- Land availability: Abundant in rural Lowndes, eastern Elmore; urban infill limited by aging stock.
- New construction focused north/east: Prattville/Millbrook/Pike Road seeing 200-300 units/year.
Housing Buying Market: Demand Drivers
- Migration: Net out-migration in Montgomery city (-4,000+ since 2020); in-migration to suburbs (Prattville +2,300, Pike Road +2,000).
- Growing industries: Defense stable-growth, logistics/warehousing expansion north; remote work drawing families to low-cost suburbs.
- Declining: Central urban retail/office, tied to city pop drop.
- Affordability attracts from high-cost metros; median home ~$220k MSA-wide, demand up 5-7% yearly in growing areas.
Key Challenges on the Housing Market
- Central decline: Population loss in Montgomery reduces urban demand, high crime/poverty depresses values.
- Aging infrastructure: Older housing stock in core needs updates, flood risks near Alabama River.
- Inventory shortage: Suburbs growing faster than supply; new builds lag 10-15% behind demand.
- Affordability strain: Rising insurance (hurricane/tornado risk), interest rates hit low-income buyers.
- Racial/economic segregation: Core low-income Black majority vs affluent white suburbs limits integrated growth.
- Workforce housing gap: Military/gov jobs pay mid-range, but suburban prices rising 4-6%/year.
Investment Potential Differences Between Geographic Areas/Regions
| Area | Appreciation potential | Risk | Key drivers |
|---|---|---|---|
| Pike Road/East suburbs | High | Low | Fast pop growth, high income/schools, new luxury builds |
| Prattville/Millbrook North | High-medium | Low-medium | Industrial jobs, family migration, affordable entry |
| Wetumpka East | Medium | Medium | Recreation appeal, moderate growth, flood risk |
| Montgomery Central | Low | High | Pop decline, crime, poverty; revitalization potential long-term |
| Lowndes South Rural | Low | High | Sparse pop, low demand, ag-dependent |
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