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Seller’s market and average income impact the county. 

By Kris Harrell

The price of Butler County homes has risen steadily since 2019. Recent data shows no sign of a decline, even though the rate of increase comes at almost twice the income of local residents. 

In Butler County, the median home listing price measured on Dec. 31, 2024 was $171,000, with an average of $117,086. This is a 4.8% increase since 2023 and a 21.87% increase since 2019. 

According to the Federal Reserve Economic Data (FRED), the average household income has increased only 11.98% since 2019. In 2023, it fell just above $44,000 per household.

The Federal Housing Finance Agency (FHFA)’s House Price Index (HPI) charts the changes in prices for single-family homes in counties across the United States. The chart also shows the percentage change in the average price by tracking repeat sales on the same properties or appraised values, showing the trend of price fluctuations. 

Butler County data was measured every year from 1993 to 2023 in the agency’s All-Transactions Index, which tracks the standard deviation of house price growth. 

Analyzing four years of data from 2019 to 2023, there was an overall pricing increase, increasing from 162.38 to 217.86, a 29.46% uptick in annual price changes. 

The increase of HPI generally promotes higher consumer spending, a larger job market and overall economic growth for the area. However, this also leans the housing market towards a seller’s market, with a higher demand and lower supply for available housing. 

The increase in house prices can also be seen in the Zillow Home Value Index (ZHVI), which collects the level and appreciation of home values. This index represents the middle of the market for all homes, or the typical home value. It is noted that changes in the median home value on the ZHVI do not necessarily reflect the state of the overall market. 

According to the market overview, Honoraville has the highest current Zillow index — $144,904. Following closely are Fort Deposit with $131,325; Greenville with $120,158; and Georgiana at $108,075. No data was available for Forest Home, Rutledge, Pine Apple and Furman. 

While housing prices have steadily increased, the median household income for Butler County has increased at a slower rate. Additionally, Butler County residents are significantly below the national median household income of $80,610 and the median household income of $60,027 in Alabama. 

The average house value and price increasing twice as much as the average income can reduce housing affordability, and slow the overall economic growth expected with a high HPI. 

For more information, visit www.fhfa.gov.