The South continues to dominate national apartment construction trends, and one Alabama city is making headlines with one of the steepest growth rates in the country.
According to a new analysis from RentCafe.com, more than half of all new apartment developments nationwide are being built in the South. The trend mirrors years of steady job growth and economic expansion in the region, factors that are drawing new residents who need housing.
The report highlights that the U.S. has seen an extraordinary surge in new multi-tenant housing, with construction topping 500,000 new units each year since 2023. Last year alone, 640,000 apartments were delivered, and projections suggest 506,353 new units will be completed nationwide by the end of 2025.
While larger markets like New York, Dallas, Austin, Phoenix, and Atlanta remain leaders in raw construction volume, some mid-sized and smaller metros are seeing eye-catching percentage increases.
Among them, Naples, Florida recorded the highest growth at 275% since 2024, adding 3,161 units. Right behind it is Birmingham, Alabama.
According to the analysis, “the Birmingham metro area is estimated to nearly triple its new apartment deliveries this year, registering a 198.1% increase with 1,711 new units.”
This surge is being fueled by downtown revitalization efforts, stronger business incentives, and a wave of migration to Southern cities. Analysts also point to Birmingham’s affordable cost of living and growing startup scene, which have become magnets for millennials and Gen Z renters.
The numbers highlight Birmingham’s ongoing urban transformation, with developers responding to rising demand for modern apartment communities close to jobs, entertainment, and cultural amenities.
But while Birmingham is booming, another Alabama metro is seeing the opposite trend.
“Huntsville was ranked sixth among cities with a 49.2% decrease in the number of new apartment deliveries since 2024.”
Even so, Huntsville still added 2,976 new units—more than Birmingham’s total—reflecting the Rocket City’s continued growth despite the slowdown.
The South’s pro-business environment, affordability, and more flexible zoning laws have made it the epicenter of U.S. multifamily development.
In Birmingham, apartment construction is closely tied to downtown investment, signaling broader economic growth and neighborhood renewal.
The influx of millennials and Gen Z renters underscores the importance of rental housing for younger populations priced out of homeownership.
Alabama showcases both extremes—Birmingham’s surge vs. Huntsville’s sharp decline—illustrating the fluidity of housing markets even within the same state.
With apartment demand still strong, experts say cities that can balance affordability, livability, and economic opportunity will continue to see developers pour resources into new construction.
Originally reported by AL. Com.
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