BIRMINGHAM, Ala. — The Birmingham housing market is experiencing a significant boom, with apartment construction skyrocketing nearly 200% compared to last year, according to new data. This surge is reshaping the city’s skyline and impacting how locals find housing.
A study indicates that the Birmingham metro area is on track to nearly triple the number of new apartments built last year by the end of 2025. Currently, Birmingham ranks second in the nation for year-over-year apartment construction.
Doug Ressler, Business Intelligence Manager at Yardi Systems, the group behind the analysis, said, “Migration was a key point for us. We also found that you also had business and governance local organizations that were willing to change zoning, permitting, that type of thing reducing a lot of the cost it took to develop.”
The Birmingham metro is expected to add about 1,700 new apartment units in 2025, marking a 198% increase over last year. Ressler noted, “Birmingham and Huntsville area are very robust right now. In Birmingham and Huntsville you also have tech hubs there that are going on, and also the school systems. Don’t forget the universities.”
Experts attribute the growth to downtown revitalization, stronger business incentives, a relatively low cost of living, and an influx of new residents from neighboring states. However, Ressler expressed uncertainty about the sustainability of this growth.
“The Fed making moves right now to reduce the interest rate — we see maybe one more cut this year. Who knows what 2026 will bring but we could see activity pick back up in 2027,” said Ressler.
While analysts do not expect the same pace of growth next year, they believe demand will return in the years ahead.