Texas Is Win­ning Amer­ica’s Home­build­ing Race

ForbesWeekly - - NEWS - FOL­LOW NIALL MCCARTHY, FORBES CON­TRIB­U­TOR, AT www.forbes.com/sites/niallm­c­carthy

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.

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