Chelsea is the fastest growing city in Alabama, according to new estimates from the U.S. Census Bureau, while Birmingham continues to lose ground as the state's largest municipality.

Located off often congested U.S. 280, the southern Shelby County city of Chelsea grew by 4 percent from 2016 to 2017, adding 519 residents. That brings the population to 13,011, the new data shows. Chelsea's population is up nearly 28 percent since 2010.

Last year's fastest growing city, Fairhope in Baldwin County in south Alabama, added more residents than Chelsea but that was only a 3.68 percent rise.

Other smaller cities in the Birmingham metro area, such as Calera, Helena and Moody are growing slightly.

Chelsea City Councilwoman Tiffany Bittner said the city is a natural fit for families looking for a safe and affordable community with good schools while also being a convenient drive to Birmingham.

Young families are moving to farther down Highway 280 to Chelsea to find newer homes, she said.

To go along with the population growth Chelsea is seeing a boom in residential construction. According to the city, 207 homes were built in 2017, 219 in 2016 and 131 in 2015.

"Our home building permits are really up for the first four months of the year (2018)," Chelsea Mayor Tony Picklesimer said. "Chelsea is a place where young families want to raise their children," he said.

According to the city of Chelsea, 101 residential building permits were issued through April of this year.

Chelsea still isn't building enough homes, despite the boom, said Bittner, who works as a real estate agent. New homes sell as quickly as they are constructed, she said.

"It is a sellers' market right now because we are still low on inventory," she said.

Picklesimer said he isn't surprised by his city's growth.

"We've had four new companies to come to town - they are either open or in the process of opening," he said.

These companies, including Complete Communications Systems, which moved from Pelham; Holcombe Doors and Windows, which is relocating from Hoover; and a yet-to-be-named pharmaceutical manufacturing company, will bring about 80 jobs combined to Chelsea.

Picklesimer said Station 31 Pizza & Subs plans to open a restaurant in the former volunteer fire department station.

Birmingham

Meanwhile, Birmingham continues to lose residents despite an influx of new housing in downtown.

According to Census estimates, the Magic City lost 553 people from 2016 to 2017, trimming the population to 210,710. Birmingham lost less than 1 percent of the population from 2010 to 2017.

"We will take a close look at the estimates from the U.S. Census Bureau, but Birmingham has seen this trend of slight decline or no growth for the last decade," said Rick Journey, director of communications for the Birmingham mayor's office.

He said the city is "very optimistic" about population growth moving forward.

"While downtown development has been exciting and good for the city, we believe the challenge can be met by a commitment to neighborhood revitalization in all 99 neighborhoods as well as our focus on work force development," Journey said. "Growth can be found through opportunity and those opportunities will be created through a relentless focus on talent development, talent retention and talent attraction. We are dedicated to creating a culture that sustains small businesses and minority-and-women-owned businesses that, in turn, provide more opportunities for our residents."

The mayor has also designated a staff member to lead the city's efforts to make sure every Birmingham resident is counted in the 2020 Census.

The Magic City's population dip caused Birmingham to be passed in size by California cities Fontana and Santa Clarita and Tacoma, Wash.

Birmingham isn't the only city in the metro area to lose residents. Mountain Brook and Homewood, which has little room to grow anyway, saw a slight decrease in residents from 2016 to 2017.

Since 2010, Jasper lost 5 percent of its population, while Hueytown lost 4 percent and Fairfield and Bessemer each lost nearly 4 percent.