The City of Decatur approved land for a new $40 million dollar neighborhood on Tuesday.
The city said a survey shows at least 50,000 people will move to North Alabama for jobs in the next three years and Decatur needs to keep up with Madison and Limestone counties.
56 homes will be built in a neighborhood off of Old River Road. It will fill an area of about 20 acres of land.
People in Decatur says they need more neighborhoods like this one to keep up with the population growth.
"In this area right here, it's amazing how a house goes up for sale and it's sold overnight almost," said Decatur resident, Larry Trotter.
Larry Trotter has lived in Decatur for almost 25 years and says his friends have a difficult time finding houses to live in.
"They seem to have a hard time finding what they want, but when they find it, it's gone quick," said Trotter.
Trotter says more single-family houses are needed.
"There's a lot of need in Decatur evidently," said Trotter.
With Mazda-Toyota Manufacturing and other companies bringing more jobs to North Alabama, people are worried Decatur will fall behind.
"There's new projects that are going to start up and they do need housing, but there is not enough," said Decatur resident, Wayne Reed.
Mayor Tab Bowling says he expects at least six thousand people will move to Decatur in the next three years and that's why the city approved a new 40 million dollar neighborhood to be built off of Old River Road.
"If there's not houses built, there will be no places for them to live so it looks like a home run right there," said home-builder, Howard Morris.
People say they hope Decatur can support the area’s growth.
"There's a lot of people moving into Decatur and you see a lot of growth to the schools and of course with the new work coming close to Madison, it's going to really multiply," said Trotter.
Officials say the neighborhood will start being built next month and it will take 3 to 5 years to be completed.
Mayor Bowling also says Decatur will soon have more apartment buildings.