Huntsville is a land of opportunity for new projects. The “Rocket City” is the most aggressive market in the nation for apartment development, according to data from RealPage. The city claimed that title in 2022 and has maintained it ever since.
Developers completed roughly 5,900 units in the first quarter of 2024, according to RealPage. This expanded supply by 15.9 percent. Another 9,895 units are currently under construction, with 6,900 of those apartments slated to deliver by the end of the first quarter of 2025. RealPage estimates the city will not see a peak in inventory growth until the end of 2024.
Despite this, RealPage also reported that demand in Huntsville has kept pace with supply, relatively. Roughly 5,110 units were absorbed between April 2023 and April 2024, about even with the 5,885 units delivered, RealPage Market Analytics reported.
Population Growth, Labor Force Fuels Pipeline
Huntsville has undergone major population growth over the past decade. The population of the Huntsville metropolitan area, which comprises Limestone and Madison counties, was 527,254 in 2023, according to the Federal Reserve Bank of St. Louis. This is a 21 percent increase from 435,695 in 2013. The city overtook Birmingham as the largest city in Alabama in 2021.
Huntsville has a rich history, with a strong labor force. Total nonfarm employment in the city increased 30 percent from 216,600 in May 2014 to 282,200 in May 2024. The unemployment rate rested at 2 percent, as of this past May. The city’s diverse resident base — built from the local aerospace, technology and artists — weaves the tapestry of Huntsville.
Halstead Development has observed particularly strong demand in Huntsville’s historic Five Points neighborhood, where we are currently underway on Stella at Five Points, a 352-unit community. The community will offer studio, one- and two-bedroom floor plans.
Stella at Five Points is inspired by the local history of Five Points. The building was designed by architect Dwell Design Studio. Focus Design Interiors provided interior design services for the property. The community’s interiors were inspired by the Five Points street layout, a network of broad parallel streets and service alleys the neighborhood retains from the 19th century, as well as various surrounding landmarks in Huntsville.
The development is situated across from the Goldsmith-Schiffman fields, which are being evaluated for a potential conversion into youth athletic fields and a park for the community as a whole.
Amenities Anchor Spaces
Members of Gen Z have grown up and are entering the workforce. This generation is generally defined as having been born between 1997 and 2012, meaning that the oldest members of Gen-Z will be turning 27 this year. These young professionals are drawn to live-work-play environments that prioritize sustainability, walkability and community.
Modern renters desire not simply an apartment, but a home. It’s more important now than ever before to offer amenity space for residents to meet their social needs.
Planned amenities at Stella at Five Points include a rooftop observatory with beer on tap, clubhouse, package room, coffee bar, conference room, pool, bike maintenance shop, four courtyards, sculpture garden and covered parking with EV chargers.
Stella at Five Points will also feature a locally owned restaurant and a “makerspace,” which will be open to the public on specific dates. The makerspace will offer residents a dedicated area to explore their creativity, equipped with basic tool for small art projects and supplies.
Building a Sense of Community
Another way to foster a sense of community is to engage with the local population and the history of the region. This can be done by introducing social programs for tenants and non-tenants alike.
One of the programs planned for Stella at Five Points is an artist in residence program, which will recruit local artists to live in and produce work for the community.
The program will feature Chris Taylor (who goes by the pseudonym Fritz Strathern), associate professor of sculpture at the University of Alabama Huntsville, and muralist Jessie Andrews, who is known for “Celestial Symphony,” her planetary mural in Huntsville’s downtown area.
Both Taylor and Andrews will live at the property and plan to serve as cultural ambassadors. The artists will produce live art installations, murals, sculpture gardens and will lead interactive workshops. Our goal with the program is to enrich the cultural fabric of the community.
Stella at Five Points will also tap into the rich culinary history of Huntsville. The community’s restaurant component will be anchored by Sophie’s by Camille, an American bistro-style restaurant that will offer a craft cocktail program and live entertainment. The bistro is a concept from La Esquina Cocina, which has already made a significant impact in the restaurant market in northern Alabama.
Huntsville is an active market with a rich history and ample room for opportunity. The wealth of art, commerce and personality is what has drawn so many people — including ourselves at Halstead Development — to the Rocket City.
Zac Gibbs is the vice president of development for Huntsville-based Halstead Development. The company was founded in 1946 and develops multifamily, single-family and other commercial property types. Halstead Development has developed more than 5,000,000 square feet of retail space and 7000 apartments.