Birmingham OKs 64 Rental Homes at Old Carraway Site

The Birmingham City Council voted to rezone land at the former Carraway Hospital campus, setting the stage for new housing in the city’s Northside community. The move marks a major step in transforming a long-vacant site into a neighborhood with new homes and renewed energy, ABC33/4o reported.

The ordinance changes portions of the 50-plus-acre site’s zoning classification to allow for multiple dwellings. The rezoning shifts parts of the property from mixed-use and medium-density designations to a qualified multiple dwelling district. This adjustment clears the way for construction of rental townhomes, duplexes and cottages.

City officials said demolition at the former hospital grounds is nearly complete, and construction on the first phase is expected to begin in early 2026. The first phase will deliver 64 rental homes along Carraway Boulevard north of 17th Avenue North, with move-ins anticipated in early 2027.

Council President Wardine Alexander described the vote as the culmination of years of work. “When I first got on the Council, Carraway was just rubble,” she said. “It wasn’t abandoned, but it wasn’t developed at all. We know it’s going to take a lot of work to develop this, but this is such a transformation that’s going to happen to this area.”

District 4 Councilor Brian Gunn echoed the sentiment, highlighting the importance of new housing. “Rooftops are what we need in the city of Birmingham,” he said. “Bringing rental units online in the Northside community will drive demand for more businesses to locate here.”

Gunn called the development a major milestone. “Seeing this site that was once an eyesore come back online and reactivate into something that will benefit and serve as a catalyst for the entire Northside community is incredible.”

Not all neighbors are fully on board. Ronald Williams, a nearby resident since 1994, said he supports progress but worries about neighborhood character. “I’d like to see good people come here and be good neighbors,” he said. “I’m not interested in a lot of short-term rentals that destabilize our neighborhood.”

Other residents expressed enthusiasm for the long-awaited development. Barbara Thomas, President of the Norwood Neighborhood Association, said the project restores value to a site once central to the community. “This property once meant so much to the community,” she said. “To see it revitalized is exciting.”

The Carraway site sat largely unused for years after the hospital closed in 2008. The new zoning and homes are expected to bring fresh life to the area and attract future investment.