Tuscaloosa, AL—35406
Real Estate Data & Market Trends
Key Metrics at a Glance
Home Price Trends — Tuscaloosa, AL
As of Oct '25, the median home price in Tuscaloosa, AL is $446,000, with a year-over-year change of 1.3%. This indicates that home prices in Tuscaloosa, AL are increasing. According to Zillow, the 1-year price projection is -0.7%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $446,000 | 1.3% |
| Single Family | $465,000 | 1.5% |
| Condos | N/A | N/A |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $182,000 | 2.2% |
3 Bed | $366,000 | 1.7% |
4 Bed | $565,000 | 2.5% |
| 5 Bed | $768,000 | 3.2% |
% of Housing Stock
Rental Trends — Tuscaloosa, AL
As of July '25, Rentcast reports the average rent in Tuscaloosa, AL is $2,240, with a year-over-year rent change of 12.0%. Per bedroom, the median rent as of July '25 in Tuscaloosa, AL is 1-bedrooms: $1,110, 2-bedrooms: $1,450, 3-bedrooms: $2,310, 4-bedrooms: $3,060. The most common rental property sizes in Tuscaloosa, AL are 2-bedroom and 3-bedroom, accounting for 42.6% and 26.1% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $2,100 | $2,240 |
| Studio Rent | N/A | N/A |
| 1 Bed Rent | $950 | $1,110 |
| 2 Bed Rent | $1,320 | $1,450 |
| 3 Bed Rent | $2,100 | $2,310 |
| 4 Bed Rent | $2,250 | $3,060 |
% of Rental Stock
Property Listings — Tuscaloosa, AL
As of Oct '25, Realtor.com reports that the median days on market for a home in Tuscaloosa, AL is 75. This is a decrease of -27.0% from last year, suggesting that homes are sitting on the market shorter than last year. The percentage of listed homes with a reduced price is 18.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $619,000 | -15.0% |
Listing Count | 137 | 19.0% |
| Listings as % of Homes | 0.9% | 19.0% |
Days on Market | 75 | -27.0% |
Demographics — Tuscaloosa, AL
As of the latest ACS Survey released in 2023, Tuscaloosa, AL has a population of 18,500, which has increased by 7.8% over the past 5 years. Tuscaloosa, AL is a moderately popular place for families, as children make up 21.7% of the population. The area has a highly educated workforce, with 67.6% of adult residents holding a bachelor’s degree or higher. There are few residents working remotely, with 7.3% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 18,500 | 7.8% |
% Under 18 | 21.7% | -17.5% |
% Seniors | 19.5% | 12.7% |
% WFH | 7.3% | 19.7% |
% w/ College Degree | 67.6% | -5.5% |
As of the latest ACS Survey released in 2023, Tuscaloosa, AL is a predominantly white area, with 82.9% of the population identifying as white. The white population has shrunk by 1.1% in the last 5 years. The second most common race or ethnicity in Tuscaloosa, AL is asian, making up 5.9% of the population. Foreign-born residents account for 9.7% of the population in Tuscaloosa, AL, and this percentage has increased by 47.0% as of the ACS Survey 5 years prior, suggesting more immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 82.9% | -1.1% |
% Black | 3.8% | -51.3% |
% Hispanic | 5.5% | 83.3% |
% Asian | 5.9% | 18.0% |
% Foreign Born | 9.7% | 47.0% |
Mortgage and Risk — Tuscaloosa, AL
According to HUD data as of 2023, there were 389 mortgage originations in Tuscaloosa, AL, of which 90.0% of loans were conventional mortgages. The average loan-to-value was 59.0%, with 22.0% above 90% LTV (very high). This implies large mortgage risk in Tuscaloosa, AL. Investor activity is low, as 2.0% of loans were by investors. 6.0% of loans were cash-out refinances, suggesting few homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 389 |
% Conventional Loans | 90.0% |
% Government Loans | 10.0% |
% Investor Loans | 2.0% |
% Second Loans | 2.0% |
% Cash Out Refinance | 6.0% |
Loan Activity
Rentals and Section 8 — Tuscaloosa, AL
As of 2024, the percent of homes in Tuscaloosa, AL under the Section 8 program is 3.8%. This is considered low, suggesting that the neighborhood is sparsely composed of Section 8 homes. Section 8 opportunity is good when HUD pays more than market rent. 1-bedroom and 2-bedroom units appear to be good home sizes to consider for Section 8 housing in Tuscaloosa, AL, because HUD payments exceed market rent, while 3-bedroom and 4-bedroom units do not.
Section 8 Market Size
Total Units under HUD | 71 |
Total Units Section 8 | 72 |
% Rentals under Section 8 | 3.8% |
% Occupied Section 8 | 89.0% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $210 | $950 | $1,160 |
| 2 Bedroom | $110 | $1,320 | $1,430 |
| 3 Bedroom | -$280 | $2,100 | $1,820 |
| 4 Bedroom | -$350 | $2,250 | $1,900 |
Affordability — Tuscaloosa, AL
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 3.5 |
| Median Home Price | $446,000 |
| Median Household Income | $119,000 |