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Birmingham Launches Affordable Housing Initiative

Construction of affordable homes in Birmingham

Birmingham, October 18, 2025

News Summary

The City of Birmingham is embarking on an initiative to build 2,500 affordable homes citywide, with plans to address housing affordability. Developer Kevan Shelton will lead the construction of eight new homes in Smithfield at a cost of just $1 each. Other neighborhoods will also benefit, including Ensley, Woodlawn, and Pratt City, with significant new developments. The program aims to attract a diverse range of homeowners, with homes priced between $150,000 and $220,000. Current demand is strong, with 250 interested applicants already.

Birmingham Launches Affordable Housing Initiative with Plans for 2,500 New Homes Citywide

The City of Birmingham is launching a significant initiative to build 2,500 affordable houses across the city, aiming to address the growing concerns surrounding housing affordability. This substantial effort includes both the construction of new homes and the repair and preservation of existing houses to meet diverse needs within the community.

Working on this initiative, Houston-based developer Kevan Shelton, CEO of Park Street Homes, is set to construct eight new homes in the historic Smithfield neighborhood. The properties will remarkably be provided at a cost of only $1 each, demonstrating the city’s commitment to facilitating affordable homeownership.

As part of the broader initiative, other neighborhoods are also seeing developments in affordable housing, with significant projects underway in:

  • Ensley’s Oak Hill area with 27 new homes under construction.
  • Woodlawn featuring 16 new units in development near I3 Academy school.
  • Shadow Brook Village in Pratt City, which will include a total of 52 new homes.

Cory Stallworth, the deputy director of community development, emphasized the critical role of transforming cleared lots into homes. The proposed homes are anticipated to be priced between $150,000 to $220,000, with the intention of attracting a wide range of potential homeowners.

Currently, there are 250 interested applicants for affordable housing solutions within the city, underscoring a strong demand for these initiatives. Construction on the Smithfield site by Park Street Homes is expected to commence this fall, marking a pivotal step in the Birmingham housing project.

Mayor Randall L. Woodfin’s administration has committed a total of $16.6 million for housing development, with ongoing efforts towards achieving the ambitious goal of 2,500 new housing units. The administration is also implementing public assistance programs designed to connect interested buyers with realtors and lenders while offering counseling on the home-buying process.

The Birmingham City Council was updated on these homeownership endeavors in a meeting held on June 24, 2025, a date that coincidentally marks Homeownership Month. Mayor Woodfin acknowledged that the city is currently halfway through its commitment to providing affordable housing, indicating progress in addressing the housing crisis.

Key Features of the Affordable Housing Initiative

Feature Details
Total New Homes Planned 2,500
Cost of Properties in Smithfield $1
New Homes in Other Neighborhoods Ensley (27), Woodlawn (16), Pratt City (52)
Price Range of Proposed Homes $150,000 to $220,000
Current Applicants for Housing Solutions 250
Funding Committed $16.6 million

FAQs about Birmingham’s Affordable Housing Initiative

What is Birmingham’s affordable housing initiative?
The City of Birmingham is undertaking an initiative to build 2,500 affordable houses across the city.
Who is involved in the construction of homes?
Houston-based developer Kevan Shelton, CEO of Park Street Homes, is working on constructing eight new homes in the historic Smithfield neighborhood at a cost of only $1 for the property.
What is the goal of the affordable housing initiative?
The affordable housing initiative aims to address the rising concerns about housing affordability.
In which neighborhoods are new affordable housing developments taking place?
Other neighborhoods besides Smithfield are also experiencing new affordable housing developments, including Ensley’s Oak Hill area with 27 new homes, Woodlawn with 16 new units, and Shadow Brook Village in Pratt City with a total of 52 new homes.
What are the price points of the proposed homes?
The proposed homes will be priced between $150,000 to $220,000 to attract a broad range of potential homeowners.
How many applicants are currently interested in affordable housing solutions?
The city has 250 interested applicants for affordable housing solutions currently in the pipeline.
What financial commitment has the Mayor’s administration made?
Mayor Randall L. Woodfin’s administration has pledged a total of $16.6 million for housing development, with efforts ongoing to achieve the 2,500 new housing units goal.

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Additional Resources

STAFF HERE BIRMINGHAM WRITER
Author: STAFF HERE BIRMINGHAM WRITER

The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.

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