Tuscaloosa, AL—35405
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 $240,000, 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 -0.5%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $240,000 | 1.3% |
| Single Family | $241,000 | 1.3% |
| Condos | N/A | N/A |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $173,000 | 6.1% |
3 Bed | $236,000 | 1.7% |
4 Bed | $316,000 | 1.6% |
| 5 Bed | $385,000 | -0.8% |
% of Housing Stock
Rental Trends — Tuscaloosa, AL
As of July '25, Rentcast reports the average rent in Tuscaloosa, AL is $1,470, with a year-over-year rent change of 2.1%. Per bedroom, the median rent as of July '25 in Tuscaloosa, AL is studios: $841, 1-bedrooms: $864, 2-bedrooms: $1,070, 3-bedrooms: $1,590, 4-bedrooms: $1,910. The most common rental property sizes in Tuscaloosa, AL are 2-bedroom and 3-bedroom, accounting for 47.1% and 24.0% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $1,550 | $1,470 |
| Studio Rent | $859 | $841 |
| 1 Bed Rent | $825 | $864 |
| 2 Bed Rent | $975 | $1,070 |
| 3 Bed Rent | $1,600 | $1,590 |
| 4 Bed Rent | $1,900 | $1,910 |
% 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 48. This is a decrease of -30.0% 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 21.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $266,000 | 0.0% |
Listing Count | 272 | 15.0% |
| Listings as % of Homes | 0.5% | 15.0% |
Days on Market | 48 | -30.0% |
Demographics — Tuscaloosa, AL
As of the latest ACS Survey released in 2023, Tuscaloosa, AL has a population of 48,600, which has increased by 6.8% over the past 5 years. Tuscaloosa, AL is a moderately popular place for families, as children make up 21.9% of the population. The area has a moderately educated workforce, with 31.4% of adult residents holding a bachelor’s degree or higher. There are few residents working remotely, with 5.3% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 48,600 | 6.8% |
% Under 18 | 21.9% | -3.9% |
% Seniors | 15.2% | 33.3% |
% WFH | 5.3% | 152.4% |
% w/ College Degree | 31.4% | -6.0% |
As of the latest ACS Survey released in 2023, Tuscaloosa, AL is a predominantly black area, with 56.1% of the population identifying as black. The black population has grown by 10.0% in the last 5 years. The second most common race or ethnicity in Tuscaloosa, AL is white, making up 34.8% of the population. Foreign-born residents account for 4.5% of the population in Tuscaloosa, AL, and this percentage has increased by 95.7% 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 | 34.8% | -22.3% |
% Black | 56.1% | 10.0% |
% Hispanic | 5.2% | 147.6% |
% Asian | 2.8% | 100.0% |
% Foreign Born | 4.5% | 95.7% |
Mortgage and Risk — Tuscaloosa, AL
According to HUD data as of 2023, there were 619 mortgage originations in Tuscaloosa, AL, of which 56.0% of loans were conventional mortgages. The average loan-to-value was 74.0%, with 49.0% above 90% LTV (very high). This implies large mortgage risk in Tuscaloosa, AL. Investor activity is low, as 3.0% of loans were by investors. 12.0% of loans were cash-out refinances, suggesting many homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 619 |
% Conventional Loans | 56.0% |
% Government Loans | 44.0% |
% Investor Loans | 3.0% |
% Second Loans | 1.0% |
% Cash Out Refinance | 12.0% |
Loan Activity
Rentals and Section 8 — Tuscaloosa, AL
As of 2024, the percent of homes in Tuscaloosa, AL under the Section 8 program is 12.4%. 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 | 1,247 |
Total Units Section 8 | 1,098 |
% Rentals under Section 8 | 12.4% |
% Occupied Section 8 | 78.2% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $145 | $825 | $970 |
| 2 Bedroom | $225 | $975 | $1,200 |
| 3 Bedroom | -$70 | $1,600 | $1,530 |
| 4 Bedroom | -$310 | $1,900 | $1,590 |
Affordability — Tuscaloosa, AL
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 3.7 |
| Median Home Price | $240,000 |
| Median Household Income | $61,400 |