From the air-3 — The downtown Birmingham skyline. (Nathan Watson / Bham Now)

The Birmingham metropolitan area is estimated to nearly triple the amount of new apartment builds it recorded last year, according to a recent report by RentCafe.com. The 198.1% increase over 2024 lands the Magic City in the #2 spot on the biggest year-over-year growth in apartment completions.

Birmingham ranked #2 in the biggest year-over-year construction of new apartments

(Source: RentCafe Analysis of Yardi Data as of July 2025)

2025 has been a momentous year for new apartment construction in the U.S., with an estimated 506,353 new apartment units expected to open by the end of the year. Although this year’s numbers won’t quite top the record-breaking 518,108 new apartment builds recorded in 2024, it remains significantly higher than the annual totals recorded since 2015.

Although large metros like New York, NY and Dallas, TX lead the way in new apartment construction by sheer numbers (30,023 and 28,956, respectively), several smaller and mid-sized metros show dramatic year-over-year increases.

While the coastal town of Naples, FL led the Top 20 Metros for Apartment Growth in 2025, Birmingham was not far behind.

“In second place, Birmingham, AL, metro is estimated to nearly triple the apartment deliveries it recorded in 2024, accounting for a 198.1% increase.”
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Taking the 2nd place spot, the Birmingham metro is expected to add 1,711 new apartment units in 2025, accounting for a 198.1% increase over 2024. RentCafe attributed the growth to Birmingham’s downtown revitalization efforts, improved business incentives, relatively low cost of living, increased migration from nearby Southern states and its emerging tech and startup scene.

New and coming soon apartments in the Birmingham metro include: