Investor activity is hitting Alabama’s small towns hard. According to the Zillow Home Value Index, home prices in 13 communities are rising far faster than local incomes or historical norms can support. These towns show the sharpest gaps between past trends and current growth, driven by a wave of investor buying that now accounts for nearly 11% of home sales statewide. While big cities are starting to stabilize, these small markets are still red-hot—and increasingly out of reach for local families.
13. Phil Campbell – Investor Feeding Frenzy Factor 1.18% (July 2025)
- Historical annual growth rate (2012–2022): 4.08%
- Recent annual growth rate (2022–2025): 4.13%
- Investor Feeding Frenzy Factor: 1.18%
- Current 2025 price: $174,181.33
Phil Campbell shows the most moderate investor activity on this list, with recent price growth barely exceeding its historical average. The town’s current median home price of $174,181 reflects steady but controlled appreciation, making it one of the few communities where local buyers still have a fighting chance against outside investment pressure.
Phil Campbell – Small-Town Stability in Northwest Alabama
Located in Franklin County in northwest Alabama, Phil Campbell maintains its character as a small rural community with a population of around 1,100 residents. The town sits along Highway 43, about 30 miles south of the Tennessee border, providing residents with access to larger employment centers while preserving a quiet, small-town atmosphere.
The relatively modest investor feeding frenzy factor of 1.18% suggests that Phil Campbell has largely avoided the speculative pressures affecting other Alabama communities. With homes averaging $174,181, the market remains accessible to local working families, particularly those employed in the area’s agricultural and manufacturing sectors. The town’s proximity to Muscle Shoals and the Tennessee Valley region provides residents with job opportunities while maintaining lower cost of living compared to more urbanized areas.
12. Cowarts – Investor Feeding Frenzy Factor 5.97% (July 2025)
- Historical annual growth rate (2012–2022): 5.55%
- Recent annual growth rate (2022–2025): 5.88%
- Investor Feeding Frenzy Factor: 5.97%
- Current 2025 price: $173,216.90
Cowarts demonstrates minimal acceleration in its housing market, with recent growth rates only slightly exceeding the already strong historical average of 5.55%. At $173,216, home prices remain relatively affordable compared to other communities experiencing investor pressure, though the consistent appreciation suggests growing outside interest.
Cowarts – Strategic Location Near Dothan Drives Steady Growth
Cowarts sits in Houston County, strategically positioned just north of Dothan, Alabama’s largest city in the southeastern region. This proximity to Dothan’s economic opportunities, including major employers like Michelin North America and various agricultural processing facilities, makes Cowarts an attractive option for families seeking lower housing costs while maintaining access to urban amenities and employment.
The town’s modest investor feeding frenzy factor of 5.97% indicates that while outside investment is present, it hasn’t reached the explosive levels seen in other Alabama communities. Home prices averaging $173,216 remain within reach for many local buyers, particularly those working in Dothan’s diverse economy. The area benefits from its position along major transportation corridors, including proximity to US Highway 84 and State Route 52, which facilitate both residential appeal and commercial development.
11. Enterprise – Investor Feeding Frenzy Factor 11.97% (July 2025)
- Historical annual growth rate (2012–2022): 3.64%
- Recent annual growth rate (2022–2025): 4.08%
- Investor Feeding Frenzy Factor: 11.97%
- Current 2025 price: $203,693.87
Enterprise shows moderate investor pressure with recent growth accelerating to 4.08% from a historical average of 3.64%. The current median home price of $203,693 represents a significant jump from historical norms, though the town’s strong economic fundamentals may justify some of this appreciation beyond pure speculation.
Enterprise – Military Presence Anchors Housing Demand
Enterprise, located in Coffee County, benefits from its proximity to Fort Novosel (formerly Fort Rucker), the U.S. Army’s primary helicopter training base. This military connection provides economic stability and consistent housing demand, as military personnel and contractors seek housing in the area. The town’s population of approximately 28,000 makes it one of the larger communities on this list, with a diverse economy supporting the current median home price of $203,693…