The latest semi-annual report from the John Burns Research and Consulting Summit confirms what many in the housing industry already sensed: the national mood has shifted. Optimism is down, land plays are cooling, and many developers are pulling back.
At DDB Capital, we see it differently. We believe this environment rewards bold, disciplined operators who know where to look. While others focus on trendy coastal metros or hit pause altogether, we’re doubling down in North Alabama.
Here’s why.
Let’s start with what the data says:
- 49% of industry professionals are less optimistic about the three-year housing outlook than they were just a year ago
- 50% expect home prices to decline slightly over the next 12 months
- Builders have reduced new starts by 10 to 13 percent and are rethinking land acquisition plans
- Spring sales activity has been disappointing across many major markets
- Land banking is becoming more crowded, and institutional capital is on the sidelines when it comes to new multifamily development
- It is now twice as expensive to own an entry-level home as to rent one, nationally
Across the board, the sentiment is clear. The industry is paying what one summit attendee called the “uncertainty tax.”
At DDB Capital, we’re focused where others aren’t. And right now, that means building in North Alabama.
While major builders slow down, we’re building in places like Huntsville and its surrounding MSA. The reason is simple: this region still has the ingredients that matter most for long-term housing demand.
- The FBI continues to scale its operations in Huntsville, bringing high-wage jobs and relocating families to the area
- U.S. Space Command’s ongoing expansion is further solidifying the city’s role as a national security and aerospace hub
- North Alabama boasts a strong, diverse workforce with a growing base of technical and advanced manufacturing talent
- Compared to overheated markets, the region offers real affordability without sacrificing quality of life
This isn’t about riding a wave. It’s about building where the fundamentals make sense, regardless of national sentiment.
There Still Aren’t Enough Homes
Despite the recent pullback in construction, population growth hasn’t slowed in North Alabama. In fact, it’s accelerating.
Huntsville is now the largest city in Alabama, and job creation continues to outpace housing development. The result is a simple supply-demand mismatch: there just aren’t enough homes for the people moving in.
Delays in new construction, tighter financing, and builder hesitation are all contributing to a growing shortfall. This isn’t just a data point—it’s a lived reality across fast-growing suburbs and rural counties in the region.
At DDB Capital, we’re responding to that need directly. We aren’t waiting for demand to show up—we’re building for the demand that’s already here.
The Bottom Line
Yes, the market has changed. But DDB Capital’s strategy hasn’t. When the national mood gets cautious, we see opportunity. We’re not chasing growth. We’re planning around it.
Our thesis is clear: the combination of economic pressure, slowing construction, and long-term job growth in overlooked markets is a powerful setup for investors and residents alike.
In North Alabama, it’s still build, baby, build. We’re just getting started.
Signal & Noise is a blog series created by DDB Capital Senior Analyst Johnathan Chavez. It critically examines articles from major real estate publications, using statistical analysis to verify or challenge their claims and assess their alignment with market realities
Disclaimer
This communication is intended for informational purposes only and should not be construed as an offer to sell or a solicitation to buy any securities, investment products, or services. Any offering will be made only through official offering documents to qualified investors. Past performance is not indicative of future results. Investing involves risk, including possible loss of principal. Please consult your legal, tax, or financial advisor before making any investment decision.
