HUNTSVILLE, Ala — According to a study by Rent Cafe, by the end of the year, Huntsville is projected to open over 2100 apartments here in the city, leaving many of the residents asking the simple question, why? "Well, I think there is certainly an overabundance of apartments being built," District 4 councilman Bill Kling shares. " But that's being done with private money, not city money. So, the private developers can pretty much do whatever they want to. I do think, for example, that the Stella Complex is excessively large and that is actually going to impact traffic in the downtown area. Now there's a development that's gone into the low mill neighborhood, and I think that's actually helped taken a vacant lot that's been sitting there for a long period of time, and it's put up a good investment in that neighborhood.
Rent Cafe also shows Huntsville opened 3,859 new apartments for renters between 2020 and 2022, distributed almost equally between Madison and the city of Huntsville and many residents aren't happy. users took to Facebook to voice their frustrations.
One user said, "How many apartments could we possibly need in this area. Half of the apartments sit empty for the longest because they're too high."
Another shared, "I would support if it if there were some affordable options. $1400 for a one-bedroom apartment is outrageous. it may be Rocket City, but we're not all rocket scientists."
Kling shares that affordable housing is being worked on but notes that influx may come in handy. "The local real estate market has continued to grow and grow and get more expensive," Kling shares. "A lot of people who are in apartments now find that they're literally being priced out of Huntsville. That's a concern that i would have. I think that there's some ideas are going to be coming. We are being overbuilt. but again, it's private money. Huntsville has a great future. possibly space command will still be coming here. so, there could be some catching up in that cycle. "
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Huntsville is rightfully keeping up with today's trend of adding mixed-use housing to growing neighborhoods, but affordability is what the people want, and the city is hoping to figure out a way to so. "Affordability for housing is an issue nationwide, " Urban and Economic Director for the City of Huntsville Shane Davis said. "I'm not sure any city has found a solution. The struggle to find affordable living is not just a problem felt in the Rocket City.
The city reports between 1/1/2022 and 7/31/2023, an estimated 4,659 apartment units were granted certificates of occupancy in the City of Huntsville." I mean, everybody's looking a little different," Davis shares. "I think one of the growing trends that you're seeing across the U.S. that is having some impact, and we're looking at that from a zoning perspective by allowing a higher density bonus count."
A density bonus is often granted to buildings that accommodate a fair share of affordable units for working families. It encourages the production of affordable housing by allowing developers to build more units than would ordinarily be allowed due to underlying zoning code. "So, you know, if zoning, for instance, for a tract of land, let's say, would allow a 400-unit multifamily complex, we may give you a 20% bonus in density so you can add, you know, another 80 units, but those have to meet certain thresholds of affordability," Davis said.
That could mean income would be the deciding factor. "The affordability units would be based on income," Davis shares. "So, you would come in, you know, show proof of your income and you would qualify for that. So, you would have mixed income, if you will, in that complex."
To note, this one plan the city is looking at, but they are committed to exploring all options. "We're looking at options like that and different options, too," Davis said. "The city certainly not in the real estate business... trying to drive, you know, private industry and private market equity groups and what they do, but we also care about our citizens. and affordability is a key topic we're going through right now."
But until then, what is the reality of affordable housing here in the rocket city? "we're seeing a lot of people who traditionally wouldn't apply for public housing apply, "Antonio McGinnis, Executive Director for the Huntsville Housing Authority shares. "We have close to 600 people who are on the public housing waiting list and close to 400 people who are on our section eight waiting list."
With more people needing assistance, there has been a strain on the market. "The hurdles we have is that we are 98% occupied most of the time so there's very limited stock available for those who may apply, which can cause frustration in the marketplace because people don't have a place to stay."
McGinnis shares that rising developments aren't the issue, in fact, some developers are willing to help. "What we've seen that worked is that we partner with people who specifically come in to create affordable housing options for individuals, so I'm excited that there are developers out there who are in that space."
For now, many will have to make adjustments if housing is what they need. " I would just tell people that you might have to rent something that's less desirable for a period of time," McGinnis shares. "If you are really needing immediate housing or you can just continue to be patient and hopefully, we'll see a trend in the other direction."