Side-by-side cost of living comparison for 2026
4% cheaper
Birmingham is 4% more affordable than Louisville. A $75,000 salary in Louisville is equivalent to $71,703 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 Louisville sits at 77 (national average = 100). The median home in Birmingham costs $165,000 compared to $210,000 in Louisville, a difference of $45,000. Monthly rent follows a similar pattern: $1,000 in Birmingham versus $1,100 in Louisville.
Groceries and everyday expenses show a narrower gap: Birmingham scores 96 while Louisville scores 96. Both cities are close to the national average for grocery costs.
Healthcare costs in Birmingham (91) are lower than Louisville (93).
Median household income in Birmingham is $38,178 compared to $52,238 in Louisville. When adjusted for cost of living, income goes further in Birmingham.
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