Located in North Alabama, Huntsville is one of the nation’s fastest-growing metros and a major hub for aerospace, defense, and advanced manufacturing. Nicknamed “The Rocket City,” Huntsville’s innovation legacy stems from NASA’s Marshall Space Flight Center and continues today through a booming tech and engineering economy supported by Redstone Arsenal, the largest employer in the region employing 45,500 people.

The city’s education and research ecosystem is led by The University of Alabama in Huntsville (UAH), which enrolls 8,564 students and ranks among the top research universities in the nation for NASA and Department of Defense funding. Calhoun Community College and Alabama A&M University further strengthen the region’s skilled workforce pipeline.

Huntsville is also known for its exceptional livability. The city boasts more than 70 parks and nature preserves, the U.S. Space & Rocket Center (Alabama’s top tourist attraction), and a revitalized downtown and MidCity District filled with restaurants, music venues, and entertainment.

On the multifamily front, the Huntsville MSA includes roughly 304 apartment communities (50+ units) totaling 55,030 units, with approximately 2,300 units currently under construction.

Huntsville Economy

Huntsville’s diverse economy is anchored by major sectors such as Government (26%), Professional & Business Services (17%), Manufacturing (16%), Education & Health Services (12%), and Trade, Transportation & Utilities (12%). Major employers include the previously mentioned Redstone Arsenal, NASA Marshall Space Flight Center (7,000 jobs), Huntsville Hospital (12,160 jobs), Boeing (3,411 jobs), Toyota Motor Manufacturing (1,994 jobs), and Blue Origin (1,235 jobs). The metro also serves as headquarters for major federal contractors such as Dynetics, SAIC, and Northrop Grumman Corporation.

Recent years have seen a surge of private investment and corporate relocations—Mazda Toyota Manufacturing’s $2.3 billion plant, the FBI’s new 1 million-square-foot campus at Redstone Arsenal, and major expansions by Blue Origin, Meta, and Polaris collectively underscore Huntsville’s momentum. The metro has ranked among the top U.S. cities for job growth, quality of life, and cost competitiveness.

Population Analysis

 

Huntsville MSA Population

The Huntsville MSA had a 2024 population of 913,977, led by Madison County (423,355). Madison County grew by 8.41% from 2020-24, while the MSA as a whole grew 6.79% during that same time period. The fastest-growing county, however, was Limestone County, which grew 14.14% from 2020-24.

Demographics

Total Population (MSA)
913,977
Unemployment Rate (August 2025)
2.2%
Population Growth (2020-24)
6.79%

Multifamily Highlights

Huntsville Multifamily Analysis

 

Huntsville’s multifamily market has begun to show signs of stabilization following several years of elevated construction and supply-driven vacancy. As of Q3 2025, the market’s vacancy rate has improved, as absorption rebounds and new construction moderates.

Supply & Vacancy Trends
Over 3,300 units were delivered during the past 12 months, while absorption reached approximately 3,800 units — well above the metro’s historical average of 1,600 units per year. Although vacancy remains above the national rate of 8.2%, construction activity has slowed significantly, which should allow the market to regain equilibrium through 2026. The most active submarkets for both new inventory and demand include Madison/Airport, University/Research Park, and Limestone County, which together account for the majority of recent development.

Rent & Affordability
Average asking rents in Huntsville stand at $1,257 per month, and Huntsville remains relatively affordable compared with peer metros such as Nashville, Charlotte, and Atlanta. High-end communities in Huntsville command average asking rents of about $1,400 per month versus a national benchmark near $2,190, offering meaningful affordability upside relative to income levels.

Construction & Development Activity
The development cycle has clearly peaked. Roughly 2,300 units remain under construction, with another 800 units breaking ground in July 2025, an early sign of renewed, selective activity. Recent and ongoing projects include large mixed-use and Class A developments such as The Jessam at Hays Farm, Metronome at MidCity, and Front Row downtown, which together illustrate the metro’s expanding live-work-play environment.

Primary Source: CoStar

 

 

Major Employers

  1. U.S. Army/Redstone Arsenal

    45,500 Jobs  | Learn More
  2. Huntsville Hospital

    12,160 Jobs / 881 Beds  | Learn More
  3. NASA/Marshall Space Flight Center

    7,000 Jobs  | Learn More
  4. Mazda Toyota Manufacturing USA

    4,000 Jobs  | Learn More
  5. The Boeing Company

    3,411 Jobs  | Learn More
  6. Huntsville City Schools

    3,000 Jobs  | Learn More
  7. Northrop Grumman Corporation

    3,000 Jobs  | Learn More
  8. Dynetics, Inc. HQ

    2,843 Jobs  | Learn More
  9. SAIC

    2,746 Jobs  | Learn More
  10. Madison County Schools

    2,389 Jobs  | Learn More
  11. University of Alabama in Huntsville

    2,257 Jobs / 8,564 Enrollment  | Learn More
  12. Federal Bureau of Investigation

    2,200 Jobs  | Learn More
  13. Toyota Alabama (TMMAL)

    1,994 Jobs  | Learn More
  14. Polaris

    1,932 Jobs  | Learn More
  15. Lockheed Martin

    1,638 Jobs  | Learn More
  16. Crestwood Medical Center

    1,501 Jobs / 180 Beds  | Learn More
  17. Blue Origin

    1,235 Jobs  | Learn More
  18. Alabama A&M University

    1,207 Jobs / 7,295 Enrollment  | Learn More
  19. Amazon Distribution Center (HSV1 & HSV2)

    1,100 Jobs  | Learn More
  20. Sanmina Corporation

    1,100 Jobs  | Learn More
  21. Redstone Federal Credit Union HQ

    1,095 Jobs  | Learn More

Other Demand Drivers

  1. Cummings Research Park

    300+ companies; 26,000 jobs; Anchor tenants include Teledyne Brown Engineering, UAH, Lockheed Martin, & Redstone Federal Credit Union  | Learn More
  2. Huntsville International Airport

    1.6 million annual visitors in 2024 (11% increase over 2023)  | Learn More
  3. U.S. Space and Rocket Center

    650,000+ annual visitors  | Learn More
  4. MidCity District

    $500 million mixed-use development; 110 acres; 350,000 SF retail; 900 residential units  | Learn More
  5. Bridge Street Town Centre

    Apple, Warby Parker, Lego, Belk, Bath & Body Works, Barnes & Noble, Cinemark  | Learn More
  6. Westside Centre

    655,638 SF; Target, Ross, Lowe's, PetSmart, Bealls, Burlington  | Learn More

Sources & Comments

1. The Huntsville Metropolitan Statistical Area consists of 7 counties: (1) Madison (2) Morgan (3) Limestone (4) Marshall (5) DeKalb (6) Lincoln TN (7) Lawrence

2. Primary Sources: (1) https://fred.stlouisfed.org/ (2) CoStar (3) MSCI Real Capital Analytics (4) www.greaterchatt.com

3. Sales Comps are from October 2024 – September 2025

4. This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty, or guarantee, expressed or implied as to its accuracy