Network Rail in the UK has put a the 30-storey twin tower blocks it is building in the city on hold.
A recession-triggered crash in the housing market, including apartments and office blocks, has meant building is not yet feasible, however, Network Rail says it is still committed to the development.
The two buildings are part of the £600m redevelopment project for Birmingham Station being delivered by Network Rail.
Private sector funds will be injected to build the towers, while government funding will be used to revamp the station.
Network Rail said the preparatory construction work on the rest of the New Street Gateway redevelopment will begin in September.