Texas Is Winning America’s Homebuilding Race
Texas is leading America’s homebuilding charge with Austin, Dallas and Houston collectively on pace to build 130,000 new homes in 2017. That represents more than 10% of all U.S. building permits this year and almost as many as 50 large metropolitan areas combined, according to new research by Trulia. By contrast, several markets in the northeast of the country will struggle to surpass the 500 mark this year.
One of the most interesting aspects of Trulia’s data is how the current level of construction compares with the historical average, with the majority of the quickbuilding metros concentrated in the south. Austin, Texas leads the way, forecast to finish 2017 approving 107.7% more residential construction than its historic average. It’s followed by Charleston, South Carolina (82.8%) and Nashville, Tennessee (65.8%). By contrast, Allentown in Pennsylvania, New Haven in Connecticut and Worcester in Massachusetts are all set to construct 80% fewer homes than their historic average.
As the following infographic shows, the residential construction sector is literally a hot property in Texas at the moment. Dallas and Houston are on track to build the most homes in the U.S. this year with 48,772 and 47,946 respectively. The New York metropolitan area is forecast to add 40,000 new residential properties while another Texas metro, Austin, will construct 29,872. The main factors impacting a region’s level of residential construction include strong job growth, increasing wages and rising home values.