According to a recent report released by Metrostudy, Houston’s housing market is thriving due to strong job growth, low resale inventory, and affordability.
The three trends are driving demand for new construction homes in the second quarter of this year.
Regional Director of Metrostudy’s Houston Market, David Jarvis, said job growth is one of the most important factors to Houston’s thriving market.
“Job growth is one of the single most important drivers of home demand, and Houston’s pace of job growth is one of the highest in the nation,” said Jarvis in the study.
For the first time in five years the second quarter’s tally hit above 7,000 new homes as area builders began work on 7,678 new developments, a 14 percent increase from the same time last year.
There are almost three times as many homes under construction in Houston as there are homes sitting finished and vacant.
Houston builders have started 26,080 new homes since the beginning of 2013, a 24 percent increase from 2012 and the highest annual tally since before the recession.
According to the study, there are currently 9,785 homes under construction, 1,718 more than were recorded at the end of this year’s first quarter.
Although annual starts have been stronger than annual closings since 2012, closings have seen a steady increase over the past eight quarters. In 2013, area builders closed 6,181 new homes, pushing the annual total for the year to 23,666.
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