By Speakin’ Out News (SOURCE: AL.com)
The Arcadia, a mixed-use development, is under construc- tion at Bradford and Wynn in Cummings Research Park in 2023. (photo credit: Scott Turner)
As indicated by city officials, the apartment construction surge in Huntsville may be tapering off. Shane Davis, Director of Urban and Economic Development for the City of Huntsville, reported a notable decline in proposed apartment projects during a recent Huntsville City Council meeting. Davis projected a decrease in new proposals, estimating only two to four per year compared to the previous rate of eight to ten. He suggested a stabilization in the market.
The Huntsville Planning Commission’s January meeting showed a significant drop, with no apartment units up for approval—a departure from the usual monthly influx. Thomas Nunez, Director of Planning Services, echoed these observations, signaling a potential slowdown.
Joey Ceci, President of Breland Companies, noted receiving fewer inquiries from developers seeking land for apartment construction. However, developments like Town Madison and Clift Farm outside city limits remain unabated.
Economic factors, including fluctuating interest rates that peaked at 8%, contribute to the anticipated slowdown, according to Davis and Dennis Madsen, Manager of Long Range and Urban Planning.
Despite the decline, numerous projects remain in progress. The 2022 Developmental Review listed 44 complexes with 8,800 units under construction, with 34 additional complexes with 6,900 units approved by December 31, 2022. The city anticipates releasing the 2023 Developmental Review soon.
Several ongoing projects highlight the diversity of construction throughout Huntsville, from completing the 342-unit Foundry on Governors Drive to the pending inauguration of the 352-unit Stella near downtown. Mixed-use communities are burgeoning in MidCity and downtown, with the commencement of the 318-unit Jessam at Hays Farm in south Huntsville.
The landscape also features developments like the 250-unit Arcadia on Wynn and Bradford, the 249-unit Nexus on Holmes catering to University of Alabama-Huntsville students, and the Front Row development opposite the Von Braun Center, promising 545 residential units.
Critics, including City Council members John Meredith and Bill Kling, question the market’s saturation, expressing concerns about oversupply. Kling raised the issue during discussions about the Greenbrier Preserve and the Mill Creek Choice Neighborhood Initiative projects.
However, Davis emphasized the need for diverse housing options, citing affordability as a pressing issue. He assured that the Mill Creek units would offer a mix of low-income, workforce, and market-rate housing, addressing concerns about escalating rents. The average rent in Huntsville is $1,595 per month, requiring an annual salary of $63,809 to avoid being “rent burdened,” according to the University of Alabama.
Despite skepticism, Davis remains optimistic about occupancy rates and the viability of ongoing projects. Mayor Tommy Battle and Councilwoman Jennie Robinson attribute the apartment boom to Huntsville’s rapid growth, estimating an annual influx of 3,000 to 5,000 residents. They view the surge as a necessary response to the city’s expanding population after a decade of sparse apartment construction.
