Purchasing a home is a significant investment, with homeownership offering potential value appreciation. As of January, the typical home value in the U.S. was $356,776, a 2.6% increase from the previous year. High mortgage rates, currently at 6.85% for a 30-year fixed mortgage, are impacting affordability. In Alabama, cities with the most expensive homes include Birmingham-Hoover, Daphne-Fairhope-Foley, and Huntsville, among others, based on the Zillow Home Values Index as of January 2025.