Side-by-side cost of living comparison for 2026
6% cheaper
Birmingham is 6% more affordable than Lexington. A $75,000 salary in Lexington is equivalent to $70,161 in Birmingham.
Index values shown. National average = 100. Lower is cheaper.
To maintain the same standard of living:
See exact take-home pay: Alabama salaries · Kentucky salaries
Housing is typically the biggest factor in any cost-of-living comparison. Birmingham has a housing index of 67 while Lexington sits at 82 (national average = 100). The median home in Birmingham costs $165,000 compared to $245,000 in Lexington, a difference of $80,000. Monthly rent follows a similar pattern: $1,000 in Birmingham versus $1,200 in Lexington.
Groceries and everyday expenses show a narrower gap: Birmingham scores 96 while Lexington scores 96. Both cities are close to the national average for grocery costs.
Healthcare costs in Birmingham (91) are lower than Lexington (94).
Median household income in Birmingham is $38,178 compared to $55,648 in Lexington. When adjusted for cost of living, income goes further in Birmingham.
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