While housing markets across Alabama are showing signs of cooling, Baldwin County stands out as a significant exception. The coastal county continues to experience robust growth and rising property values, creating a stark contrast with neighboring Mobile County and the rest of the state, where prices have begun to ease.
This divergence highlights a unique economic story unfolding in South Alabama, driven by population growth, strategic development, and a strong demand for both residential and luxury properties. For potential homebuyers and investors, the region presents a complex picture of both opportunity and shifting dynamics.
Key Takeaways
- Baldwin County's housing market remains strong, with a minimal 0.2% price dip, while Alabama's average home values fell by 0.4%.
- Mobile County experienced one of the steepest declines in the state, with average home prices falling by 1.4% since January.
- North Baldwin is a major growth area, with average sales prices increasing by 13% over the past year.
- Population growth is a key driver, with reports indicating seven to eight new residents move to Baldwin County daily.
- Real estate experts suggest the current off-season may present the best buying opportunities before the market heats up in the spring.
A Tale of Two Counties
The real estate landscape in South Alabama currently tells two very different stories. Across the state, typical home values have decreased by approximately 0.4% since the beginning of the year. This trend is even more pronounced in Mobile County, where average home prices have dropped by 1.4%, equating to a loss of about $2,700 in value for a typical home.
This downturn in Mobile is widespread, affecting areas from Prichard and Mount Vernon to the beachfront properties on Dauphin Island. Some surrounding rural counties, such as Washington and Choctaw, have seen values dip anywhere from 1% to as much as 10%.
However, just across the bay, Baldwin County is bucking this trend. With an almost negligible price decline of 0.2%, the market there remains remarkably stable. Several communities within the county are not just stable, but are actively growing.
Baldwin County Hotspots
Several towns in Baldwin County have seen home values increase this year:
- Silverhill: up by 1.2%
- Lillian: up by 0.7%
- Spanish Fort: up by 0.6%
- Fairhope: up by 0.5%
- Stapleton: up by 0.5%
The Driving Force Behind Baldwin's Growth
The resilience of Baldwin County's real estate market is not accidental. It is fueled by a significant and sustained influx of new residents. The county is one of the fastest-growing in Alabama, welcoming a record of just over 8,000 new people last year alone.
Susan Shallow, a realtor based in Orange Beach who leads the local real estate association, points to this population boom as a primary factor.
"Seven to eight people move to Baldwin County a day. And the county has the space to grow in."
This continuous demand for housing has kept the market competitive. The growth is not limited to the well-known coastal towns; it is spreading north, transforming formerly rural areas into new residential hubs. This expansion is supported by ongoing development and the presence of major employment centers, such as the county's 3,000-acre megasite.
North Baldwin: The Next Frontier
One of the most surprising areas of growth is North Baldwin County. According to the latest report from the Baldwin County real estate association, average sales prices in this northern region jumped by 13% between October 2024 and October 2025.
Homes in this area now average around $300,000 and typically sell in under 60 days. This indicates strong demand in a region that was once primarily farmland.
Shallow predicts this trend will only accelerate. "I think that’s going to be the big surprise over the next three to five years," she noted, highlighting the vast potential for development around the interstate and northern parts of the county. "It’s very very rural, so I think we’re going to see an awful lot going on up there that will drive the market."
Mobile's Market Softens
In contrast to Baldwin's boom, Mobile's market is experiencing a notable downturn. The price drops are affecting a wide range of neighborhoods. However, a few high-value areas have resisted the trend. The Audubon and Country Club neighborhoods, for example, have seen average home values increase by $24,000 and $13,000, respectively, showing that demand for luxury properties in established areas remains strong.
Is Now the Right Time to Buy?
The seasonal nature of the coastal real estate market plays a significant role in pricing and activity. According to local experts, the market typically slows down in the fall and winter months before picking back up after March when demand for waterfront and vacation homes surges.
This seasonal lull can create a window of opportunity for prospective buyers. Shallow confirmed that even her firm, which specializes in luxury properties, saw an expected dip in activity in October. Properties across Baldwin County also stayed on the market slightly longer compared to the same time last year.
This suggests that the current period may be the most advantageous time for buyers to enter the market, whether they are looking for a primary residence or a vacation home. "It’s less popular to be here this time of year than it is in the spring and summer months," Shallow explained. She added that the fall and winter offer a unique appeal. "This really is the most beautiful time of year we have here."
For those considering a purchase in South Alabama, the message is clear: the market is divided. While Mobile offers lower prices and more negotiating power for buyers, Baldwin County presents a picture of long-term growth and stability, particularly for those willing to explore its rapidly developing northern communities.
