The recent development review has uncovered unprecedented growth in Huntsville

Huntsville residential construction activity appears to be slowing down after a period of rapid growth. However, despite this, the city is projected to exceed the 10-year average for residential construction in 2024, according to a study by the City Long-Range Planning Division.

The 2023 Huntsville Development Review revealed that the city’s population continues to grow, even as the real estate market for single-family homes cools down. Data for this report was obtained from City records and the Valley Multiple Listing Service.

“The data from the 2023 Development Review provides a positive outlook on Huntsville’s economy. Both the residential and commercial sectors are strong and surpass our 10-year averages,” said Shane Davis, the City’s Director of Urban and Economic Development. “This data confirms our strategy of managing growth while ensuring a high quality of life.”

Davis highlighted the City’s strategic approach to industrial growth opportunities over the past three years, aiming to accommodate the increasing job openings with recent industrial development. Furthermore, the data indicates that public investments have remained robust to support population growth, making Huntsville an attractive place to live and work.

“By analyzing the Development Review data from the past few years, it is evident that Huntsville remains committed to making prudent investments that will contribute to the long-term economic strength of the market,” added Davis.

The demand for single-family housing remains high, as evidenced by the approval of 1,284 single-family lots in 2023, making it the seventh consecutive year with above-average approvals. In addition, 1,242 single-family homes received certificates of occupancy in 2023, a 5.8% increase compared to the previous year. Single-family home construction has remained steady, while multi-family and townhome sectors have experienced an uptick in construction activity.

In 2023, a record-breaking number of residential housing units (4,693 units) received certificates of occupancy in Huntsville. This represents a 26.2% increase from 2022 and is the highest number recorded since tracking began in 198. Approximately 74% of these units consist of multi-family and townhome properties.

“We are witnessing growth across the entire city,” said James Vandiver from the City’s planning department. “Areas like West Huntsville and Hampton Cove/Big Cove continue to thrive, while new developments are emerging in North Huntsville, Hays Farm in south Huntsville, Lowe Mill in the city center, and Trailhead on Chapman Mountain. Highway 72 east has also seen significant activity in both multi-family and single-family developments.”

In 2023, Huntsville witnessed the completion of 14 multi-family complexes, the highest number since 1984. Additionally, there are currently 43 complexes under construction, with 10,784 units approved. Occupancy rates for multi-family properties remain above 90% according to data from Axiometrics. While this indicates a strong development market, the increase in supply should help stabilize rent growth.

Commercial permitting activity continues to show strong growth in the retail and hospitality sectors, with moderate growth in the office market. This commercial expansion reflects the ongoing trends of population growth and the attraction of new companies to Huntsville.

The 2023 data also highlights the City’s commitment to public and institutional investments to accommodate Huntsville’s growth. Permits were issued for 193 projects in categories such as education, places of worship, recreation, aviation, and other services that contribute to the quality of life. Over the past three years, the City has approved more than 760 permits for projects in these categories.

Other notable findings from the 41-page report include:

• $556 million worth of permits issued for residential new construction in 2023 
• 4,415 residential building units permitted
• 12,359 housing units added since April 1, 2020 
• Average home sales price of $392,725, reaching a record high
• 3,044 homes sold 
• Estimated population of 235,204 as of July 2023 
• 992.7 acres annexed into Huntsville in 2023.