A review of permit data on record with HBW for new home construction in Texas from January through September of this year
Since the start of this year (thru Q3-2020), Texas has experienced gains in new home construction as there has already been an 11 percent year-over-year increase in housing starts. Based on the latest HBW Building Activity Trend Report for the four major metropolitan areas of Texas (Dallas, Houston, San Antonio, Austin), there has been a combined total of approximately 63,080 new residential construction permits added to the HBW database through the third quarter of this year. All major cities and surrounding areas reviewed exhibited year-over-year gains in new home construction ranging from 2 percent (Austin) to 14 percent (Dallas).
Here is a closer look at new home construction activity through Q3-2020 in each of the four major metro areas of the Lone Star State:
Out of the four Texas metro areas reviewed, Houston holds the highest volume of new home construction, having approximately 27,210 new residential construction permits on record with HBW through the third quarter of this year; while it may still be too early to determine, it appears that new home construction in the Houston area is on the rise as there has already been a 12 percent year-over-year increase in housing starts. Out of the five counties reviewed, more than half of all new construction took place in Harris County (13,921 permits).
When looking into the data further to identify higher value properties (value > $500k), just over 3 percent (865 permits) of all permits are for higher value residential construction projects, which is just slightly ahead of figures from the previous year.
When it comes to annual gains in the market, Dallas is leading so far this year; with more than 20,520 new residential construction permits through Q3-2020, the Dallas area has exhibited the greatest year-over-year increase (+ 14%) in new home construction. More than half of all housing starts originated from the two counties of Tarrant (6,531 permits) and Collin (5,105 permits), with both counties demonstrating year-over-year increases in new home construction of 17 percent and 22 percent respectively.
Out of all Texas regions reviewed, the Dallas areas carries the greatest concentration of higher value (>$500k) housing starts, having nearly 970 new residential construction permits with values in excess of $500k through the third quarter of this year.
As previously noted, the Austin area appears to be in line and just slightly ahead of last year in terms of new residential construction through the third quarter. From January through September of this year, there have been more than 9,600 housing starts in the Austin area, reflecting a 2 percent year-over-year increase. More than half of all new residential construction has taken place in Travis County where there have been approximately 5,330 housing starts so far this year (thru Q3-2020).
When reviewing higher value construction projects (value > $500k), the Austin area appears to be slightly behind last year’s figures, as there have been just over 340 higher value residential construction permits added to the HBW database through the third quarter.
Through the third quarter of this year, there have been nearly 5,750 housing starts in the San Antonio area, reflecting a 9 percent year-over-year increase in new home construction. Out of the three counties reviewed, the bulk of all new permits originated from Bexar County (~3,710 permits), where there has been a 6 percent year-over-year increase in housing starts.
As far as higher value new home construction (value > $500k) is concerned, the San Antonio area appears to be slightly ahead of last year’s figures, having 136 new higher value residential construction permits on record with HBW through Q3-2020.
To gain more information on the builders, homeowners and permits for the construction activity above, check out HBW for your copy of the latest construction data reports. To gain access to the HBW database and receive custom and detailed reports on the latest residential and commercial building activity in Florida, Georgia, Texas, Alabama, and Oklahoma, please contact HBW for details.