The South continues to dominate the U.S. housing market when it comes to new multifamily development—and Birmingham, Alabama, is now one of the standout cities driving the trend.
A new analysis from RentCafe.com shows that more than half of all new apartment developments nationwide are being built in the South, reflecting broader migration and economic growth patterns in the region.
Nationally, new apartment construction has exceeded 500,000 units annually for the past three years, with 640,000 reported in 2024. By the end of 2025, projections indicate another 506,353 new units will open across the country.
While large metros like New York, Dallas, Austin, Phoenix, and Atlanta lead in sheer volume, mid-sized cities are also making big gains. Naples, Florida, saw a 275% spike in apartment deliveries since 2024. Close behind, Birmingham ranked second with an estimated 198.1% increase, nearly tripling new apartment completions with 1,711 units this year.
Analysts attribute Birmingham’s surge to several converging factors. The city has invested heavily in downtown revitalization projects, which have attracted both developers and young professionals. Improved business incentives and Alabama’s business-friendly climate have also made the market appealing to multifamily builders.
The metro’s affordable cost of living compared with other U.S. regions, coupled with a growing startup and tech scene, has further fueled demand. Millennials and Gen Z renters in particular are being drawn to Birmingham’s mix of affordability, cultural amenities, and new job opportunities.
The trend is not uniform across Alabama. While Birmingham is experiencing rapid growth, Huntsville—often highlighted as one of the state’s fastest-growing metros—has seen one of the steepest slowdowns in apartment construction.
The report found that Huntsville registered a 49.2% decline in new apartment deliveries compared with 2024. Even so, Huntsville still added more units overall (2,976) than Birmingham, underscoring its sustained strength as a tech-driven economic hub.
The South’s apartment boom reflects national migration patterns. Job growth, warmer climates, relatively lower housing costs, and fewer zoning restrictions are encouraging developers to ramp up construction.
“The Southern building boom is also being aided by a perceived business-friendly environment, relative affordability and less restrictive zoning laws,” RentCafe noted in its analysis.
With Birmingham now near the top of the list for mid-sized city apartment growth, experts say it highlights how formerly overlooked metros are rapidly transforming into housing and economic hotspots.
Originally reported by AL. Com.
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