Birmingham, AL Multifamily Market Report Q3 2025

Market Overview

‍Oversupply remains the dominant story in the Birmingham, Alabama multifamily market for Q3 2025. Vacancy climbed to 13.0 percent as new deliveries (560 units) outpaced net absorption (485 units). Asking rent averaged about $1,300 per unit and slipped 0.3 percent quarter-over-quarter. Sales volume stalled at $71.1 million while average price per unit dropped to $119,000 and cap rates hovered around 7.0 percent. With around 1,400 units still under construction, supply pressure is expected to persist into 2026 before any meaningful rebound takes shape.

‍About Matthews

‍Matthews Real Estate Investment Services is a national advisory and research firm focused on multifamily investment sales, debt and structured finance. Their Q3 2025 Birmingham market report combines metro-level data on vacancy, rent, absorption, deliveries and investment trends to help owners, developers and investors position for the next phase of the cycle.To read the full report, click here.