Alabama sees record investment, housing market stabilizes
What's driving growth
Alabama's economic growth is driven by significant investments in advanced manufacturing and technology. Eli Lilly and Company is building a $6 billion pharmaceutical manufacturing facility in Huntsville and Limestone County. ArcelorMittal is investing $1.2 billion in Mobile County for an electrical steel facility.
Housing market right now
Alabama's housing market is stabilizing, with median home prices up 3.9% in March 2026 compared to the previous year. Home sales increased by 5.2% year-over-year in March 2026, with 5,334 homes sold. The median sales price in 2025 reached a record $233,969, an 11% increase over the prior year.
Migration patterns
Population growth in Alabama slowed in 2025 due to a 60% decline in foreign migration. Domestic migration also decreased, though it remains higher than in the first two decades of the century. Huntsville and Baldwin County continue to be among the fastest-growing metropolitan areas in the U.S.
Headwinds
A significant decline in international migration is slowing overall population growth across most of Alabama, with some urban counties like Jefferson and Mobile experiencing population loss in 2025. Deaths continue to outnumber births statewide and in most counties, making in-migration crucial for population increases.
Key facts
- Alabama secured a record $14.6 billion in capital investment across 234 projects in 2025. (Alabama Department of Commerce, January 2026)
- The median home sales price in Alabama reached a record $233,969 in 2025, an 11% increase. (Alabama Association of Realtors, February 2026)
- Foreign migration to Alabama declined by approximately 60% in 2025. (Public Affairs Research Council of Alabama, March 2026)
- The West Alabama Corridor project's construction ramped up in 2025 and is expected to continue into 2026. (Black Belt Newscast, January 2026)
- New laws in Alabama effective January 1, 2026, include expanded regulation of hemp products and new oversight of digital platforms and youth access. (STL.News, December 2025)