American tech giants like Tesla and Oracle have recently announced their relocation from the San Francisco Bay Area’s Silicon Valley to various cities across the Lone Star State. Houston is now the new global headquarters of the previously San Jose-based Hewlett Packard Enterprise and its 59,400 employees.
As more tech workers flock to Texas, it will be important for the state’s housing supply to keep up.
To better understand how Texas communities could accommodate this large influx of tech workers, RENTCafé recently published its analysis of Yardi Matrix apartment data on the progress of new residential apartment construction in multiple cities across the state.
Of the top Texas metropolitan areas, Houston ranked third for the number of apartments currently under construction with 28,600 units in the works, fewer than Dallas and Austin, which accounted for 49,000 and 31,000 apartments, respectively.
When it came to the number of units under construction in each Texas city, Houston ranked slightly higher. At present, 17,400 apartments are under construction in the city, less than Austin, which has 22,600 under-construction apartments, but more than Dallas and San Antonio, which have 11,400 and 9,300 units in the works.
As the national leader in apartment construction for the last few years, 126,900 apartments are under construction across the state of Texas today, the report explains.
“Texas holds the indisputable advantage of land use,” said Doug Ressler, manager of business intelligence at Yardi Matrix, in the report. “What’s great about it is that it enjoys an adequate availability to support population growth and migration, from dense cores to available exurban or suburban areas.”
Houston has historically been a hub for apartment construction over the past 10 years. From 2010 to 2020, the city of Houston built 73,000 units, the most apartments constructed compared to other cities like Austin and Dallas at 57,200 and 52,600 apartments. Across the Houston metro, 131,300 units have been built over the past decade, slightly less than the Dallas metropolitan area at 177,400.
Between 2010 and 2020, Texas added 503,300 apartments and approximately 2,000 new buildings across its metros, the report says.