HBWeekly

Big Marketing Tips for Small Budgets

Posted on August 26, 2016 by Erika Carruth

Although developing a marketing strategy for your business can take time and resources, there are a few things you can do now to improve your current marketing efforts and expand your reach.

HBW Market tips

Are you a home builder with caviar marketing dreams on a fast food budget? If so, you probably welcome low-cost and effective methods for reaching your target audience. Thanks to social media, modern technology and the many marketing opportunities available to businesses, there are some budget-friendly means for building awareness of your business and sharing your message and brand.

Truth be told, there are no quick fixes or easy one-step approaches to a properly developed marketing strategy. A comprehensive marketing strategy will have multiple layers and utilize a range of channels and materials to target, reach and engage your audience. Full strategies aside, there is always room for improvement, and sometimes our marketing efforts could use a little check-up or revision to ensure that we are maximizing our efforts. For this reason, here’s a quick list of easy and affordable marketing tips that can get you started or give a boost to what you may already have in place:

Get a List – This step is simple but takes time to get it right. Having an ongoing list of leads and prospects is essential to any marketing plan. Who is your target audience and how do you plan on reaching them? Defining your audience is one step, and getting verified contacts is another. For HBW subscribers, this step is a breeze; from new homeowners just breaking ground to residential and commercial building owners in need of renovations, HBW provides a constantly updated source for leads.
Go Local – It is great to think about your business’s reach in broad terms, but your local community is an important place to begin networking. From Chamber of Commerce meetings and local publications to sponsoring a charity or small business networking event, it is important to get out there, in-person, and beyond the digital realm of social media and websites. To get started, check events listed with your local chambers and related industry associations in your area.
Be a Resource – Whether you comment on blog posts or articles for industry magazines or develop your own trainings or blogs, it is important that you share your expertise and home building knowledge. Leaving valuable comments on blogs or posting an article on a high-traffic construction website can be an effective way to get noticed by popular industry outlets and their readers.
Be an Educator – Not long ago, hosting an online tutorial or training seemed to be just for the most tech-savvy of businesses. This is not the case anymore. Hosting full-scale webinars can be expensive, but there are also applications that are less costly and may serve your purposes. If you want to host an interactive “how-to” on construction, landscaping or whatever your specialty may be, you will need to move a step up from videos on YouTube. Some easy and user-friendly solutions may be in something as simple as Livestream on Facebook. If you want to create a webinar, there are a myriad of options from GotoWebinar, Webinars OnAir and many more.
Get Listed – Your business may be receiving attention online through your SEO (Search Engine Optimization) efforts or Google Ads, but don’t overlook the many free opportunities for being listed and recognized in searches. If you would like your business to be visible in a local search, then consider establishing a Google My Business account which will also bring up your business on Maps and Google+. Additionally, if you are not yet listed on Yelp, it may be worth the small effort; it’s free to add your business and can increase the likelihood of coming up in search engines.

Just as in home building, marketing success does not happen overnight and there is no one-size-fits-all solution. Building awareness of your brand is multifaceted and reliant on a variety of factors. By keeping your content relevant, your contacts and leads fresh and your name and expertise visible, you will build and maintain a solid structure for reaching your target market.

For more information on construction business and marketing tips, stay connected with the HBW Blog. To get ahead of construction activity and gain access to the latest permitting data in Florida, Texas, Georgia, Alabama and Oklahoma, contact HBW for more information on construction data reports and industry leads.

Texas Swimming Pool Construction Update – July 2016

Posted on August 24, 2016 by Erika Carruth

pool report

For those of you in Texas last month, you probably felt the record high heat throughout the state. According to the latest reports from Weather.com, Midland, Texas had the hottest month on record (average temperature of 88.2), and Houston broke the record books with last month being the warmest July on record. In the desert region, El Paso also experienced its warmest July recorded. So why all of the discussion about the hot summer heat? Well, we figured a good way to cool off would be to take a look at the latest on swimming pool construction. Although July was not a record setting period for new swimming pool construction in the Lone Star State, there are hundreds of new permits and close to $27M in total construction on file for the month with HBW.

When reviewing the four major metropolitan areas of Dallas, Houston, San Antonio and Austin, Dallas took the lead with nearly 300 swimming pool starts last month and close to $13.4M in construction value. Although Sandler Pools was on top in Dallas for total permits, construction was widespread across a variety of pool builders as there were approximately 125 active builders in the area last month. The bulk of new pool construction in Dallas took place in Dallas and Collin counties. Houston came in at second highest with 151 new swimming pool permits and nearly $8.2M in total construction value. Just about 90 pool builders were active in the Houston area last month, and most new permits originated from the counties of Harris and Montgomery. San Antonio and Austin were less active for new pools in July with both areas having just over 50 new pool starts. In San Antonio, Bexar County held more than half of the new pool construction, and in Austin 75% of new pools were started in Travis County.

Texas Swimming Pool Permits by Area – July 2016

Taking a closer look at counties across the state, the Dallas counties of Dallas and Collin took the lead with approximately 90 pool starts and more than $4M in new construction in each county. Harris County of Houston was third highest with 68 permits and more than $4.5M in construction value. Tarrant County (Dallas) and Montgomery County (Houston) ranked fourth and fifth highest for total new swimming pool permits last month.

Texas Top Five Counties for Pool Permits – July 2016

Although the average value of pools across the state stayed within the range of $44k-$54k, there are a few pool builders who led higher-value construction. As may be expected, the companies with the larger value projects had no more than a couple of starts on file for the month; there were several builders with construction valued over $125k and reaching as high as $426k. Most notably, Outdoor Elements of Houston held an average value of construction of $426k for the month, and in Dallas several builders had average pool construction values in excess of $150k. Here is the breakdown of pool builders with average swimming pool construction values exceeding $125k:

Texas Pool Builders with Average Value >$125k – July 2016

As previously mentioned, all areas fell within a $10k range of each other for average value. Houston was on top with the highest average value of $54,287, and Dallas was at the other end of the spectrum with an average value of $44,786.

Texas Average Pool Construction Value – July 2016

Information utilized for the graphs and above listed figures for Texas swimming pool construction was directly derived from HBW 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.

Resources for Developing a Disaster Preparedness Plan

Posted on August 19, 2016 by Erika Carruth

With National Preparedness Month being right around the corner, here are some valuable resources to prepare your business for severe weather and related emergencies.

dprep

National Preparedness Month (NPM) is just less than two weeks away (September), and there is no time like the present to establish a disaster plan for your business. NOAA (National Oceanic and Atmospheric Administration) has recently revised its predictions for the 2016 Atlantic Hurricane Season, stating that this year could be the most active since 2012. According to the most recent report, forecasters are now predicting a 70% chance of 12–17 named storms this season, of which 5–8 are expected to become hurricanes, including 2–4 major hurricanes.

source: noaa.gov

Around this same time last year, we reviewed the general points to cover when developing a disaster preparedness plan including general information on preparing your office, crews and clients for storms. Every year, National Preparedness Month provides us with an opportunity to not only develop a disaster plan for the first time, but to take time out to review our current plan. If you have a plan in place, it should be reviewed each year; update it as necessary and ensure that all employees are aware of the plan, procedures and steps that would need to be taken in the case of serious weather and/or a natural disaster. Whether you are developing a new disaster plan or revising your current one, there are a variety of resources and information available from several reliable organizations. Here are some links to get you started:

OSHA – We all know that the Occupational Safety & Health Administration offers information and safety regulations for the workplace, but did you know that they have dedicated an entire webpage to Emergency Preparedness and Response? The section offers guidance for businesses on how to prepare and respond to such emergencies, as well as detailed tools and guides for variations in severe weather from tornadoes to floods.
Ready.gov – This site is a great place to start when putting an emergency communication plan in place. It provides steps for making a plan as well as tools and templates designed specifically for businesses. This site provides more than just weather-related disaster preparation guidelines, and there is a menu to help you easily navigate through the information that pertains to your needs and business.
CDC – The Center for Disease Control has also pulled together its many manuals and guides and will be an active participant in National Preparedness Month. Each week in September, it will be focusing its messages and products on emergency preparation for families, communities and workplaces. The website provides an extensive list of links and emergency response resources including management planning guides, facility protection and other resources for business emergency preparation.
American Red Cross – The American Red Cross has developed a “Ready Rating” program to assist businesses and other groups prepare for disasters and various emergencies. Ready Rating is a bit of a one-stop-shop providing videos, evaluations and tools for improving disaster plans. Although it is membership-based, the program is free of charge and walks the user through steps to find the resources that are most useful to them.
Small Business Administration – In addition to information on disaster loans, which can be obtained by businesses and homeowners in places that have been declared federal disaster areas, the SBA offers a range of emergency preparedness resources for businesses. From steps for creating a preparedness plan for your business to testing business systems and building disaster kits, the SBA offers easy-to-follow guides and links. That being stated, there will be some overlapping in resources already listed above including Ready.gov and the American Red Cross Ready Rating program.
NOAA – Chances are that as a contractor, you are already staying ahead of the weather. No matter how reliable of a plan you have in place, it won’t be effective without being ready. Using tools like NOAA storm prediction center for tracking weather and staying current on the forecast will allow you and your clients to be ready for any serious or severe weather ahead.

Now that you have the resources to put a solid and comprehensive emergency plan in place, make sure to share the new information with your staff, crews and clients. By being prepared now, your crews and business will be secure and ready for any severe weather or natural disasters that may impact them in the future.

HBW serves contractors, construction and design professionals in Alabama, Georgia, Texas, Florida, and Oklahoma. For more information on construction business, safety and marketing tips, stay connected with the HBW Blog. To get ahead of construction activity and gain access to the latest permitting data and building trend reports, contact HBW for more information.

Florida Swimming Pool Construction Review – July 2016

Posted on August 17, 2016 by Erika Carruth

Hundreds of pool builders broke ground on more than 1,550 new swimming pools in Florida last month, and the southwest region led for total starts.

HBW pool report

When you think of homes in Florida, you think of pools. According to the HBW database, last month more than 1,550 new pools were started throughout the Sunshine State with a total construction value of nearly $68M. While the southwest region led for total new pool permits for the month (516 permits, total value: ~$22.6M), the fast-paced southeastern portion of the state led for total average value (> $49k). The southeast region was also ranked second highest for total swimming pool starts with 320 new permits and more than $15.7M in new construction on file for the area. Coming in close behind, the Orlando area had 314 pool starts and nearly $12.6M in total construction value.

FL New Swimming Pool Permit Totals by Area – July 2016

When reviewing the most active pool builders throughout the state, each area varies as some regions have new construction being widespread across several companies and others are led by a select few. For example, pool builders in Jacksonville saw a fairly even share of new construction with top companies having no more than 6% of the pool starts in the area, while companies like All Seasons in Orlando held 17% of the new pool permits in Central Florida. Aragon Pools and Spas was a standout in the southwestern portion of the state last month with 65 pool starts and nearly $2.2M in construction value.

FL Top 5 Pool Builders by Region – July 2016

From a county-by-county perspective, it is evident that the highest concentration of new pool construction was somewhat scattered as well. The top five counties ranged from the southwest, southeast and Tampa areas. Collier County (SW) was #1 in the state for new pool construction with 185 starts for the month and more than $8.6M in construction value. Also in the southwest, Lee County was second highest with 159 new swimming pool permits and nearly $6.6M in total construction value. Palm Beach County in the southeast came in a close third with 122 pool starts for the month and a total construction value in excess of $6.2M.

FL Top 5 Counties for New Pools – July 2016

The average value of pool construction in each area was in the $40k range statewide in July. Southeast Florida was at the higher end of the spectrum with an average value of $49,120, and Orlando was at the lower end with an average value of $40,070 for the month. The southwest region balanced just around mid-range with an average value of $43,773.

FL Pool Average Value of Construction - July 2016

FL Average Value of Pool Construction – July 2016

Information utilized for the graphs and above listed figures for Florida swimming pool construction was directly derived from HBW 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.

Residential Construction in Florida Holding Steady in Summer

Posted on August 12, 2016 by Erika Carruth

With nearly 4,400 housing starts last month, residential construction in Florida has been consistent in June and July.

fl report HBW

Last month, we reviewed the state of Florida’s residential construction in June as well as through the first half of the year. Taking a look at the latest for July, housing starts are consistent with June throughout the sunshine state. Aside from slight increases ranging from 3-5% in Jacksonville (5%), the southeastern (5%) and southwestern (3%) regions, residential construction is holding steady so far this summer.

Florida New Residential Construction Permits – July 2016

In July, there were 4,395 housing starts and more than $1.2B in construction value on file for Florida in the HBW database. Tampa continues to have a slight lead over Orlando for total housing starts (1,155 permits), while Orlando holds the highest total value in residential construction for the month (~ $320.6M). Although the southeast region of Florida continues to rank at the lower end for total new housing starts, it continues to hold its value; with an average construction value in excess of $362k, Southeast Florida remains at the top for average value of homes constructed. The Orlando area was next highest with an average value of $299,316, and the southwest region moved up one spot since June with an increase of approximately 13% for an average value of $278,105.

Florida Average Value of Residential Construction – July 2016

When reviewing top counties for residential construction throughout the state, Orange County of Orlando held tight at #1 and had the highest total number of housing starts (481 permits) and more than $160M in construction value. The Tampa county of Hillsborough jumped up one spot since June to #2 with 406 housing starts and a total construction value in excess of $133.1M. Although not on the top five list in June, Polk County (Tampa) and Collier County (SW) came in third in fourth in July with 338 new permits in Polk and 285 permits in Collier. Not far behind and maintaining its position in the top five, St. Johns County of Jacksonville had 274 housing starts on file for the month.

FL Top 10 Counties for Total New Residential Permits – July 2016

Information utilized for the graphs and above listed figures for Florida residential construction was directly derived from HBW 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.

Reaching Your Target with Seasonal Maintenance

Posted on August 10, 2016 by Erika Carruth

With the closing of summer and fall on the horizon, seasonal maintenance packages can be a great way to engage existing clients and open the door to new ones.

Last month, we explored seasonal marketing and how it can be a powerful tool in reaching your target audience. As we already know, seasonal marketing can be a great way to open the door with a lead by focusing on services that are most relevant at a given time of year. Taking it a step further, you may want to consider offering seasonal maintenance packages. If you are not already offering preventative maintenance programs to your clients, you may be missing out on filling a gap in services. In the same way that landscapers and pool builders may offer regular maintenance services post-install, home builders and remodelers also have the opportunity to provide maintenance packages to extend the life of their projects.

In addition to extending the life of your current projects, seasonal maintenance packages can be a great way to spark the interest of a new lead. For HBW subscribers, new leads are generated every week, and the latest reports can be useful in reaching prospects with maintenance offerings early in the process. Additionally, by using the HBW archives, subscribers can focus in on individuals who may not be ready for new services but have a roof or pool that are due for a maintenance check-up. Seasonal maintenance packages are an easy way to reach both the prospects just breaking ground and those in the archives because both will find season-specific services useful. For example, summer will be coming to a close soon, and it will be time for homeowners to prepare for fall. New and existing construction can benefit from seasonal maintenance in order to prepare the property for the change in the climate and environment. Here is a sample of seasonal maintenance services you may be in the position to offer in time for fall:

Foundation – Check for cracks and caulk in areas as needed (pipes/wires entry, windows, door frames, etc.)
Prepare for Storms – Storm windows and doors; screen removal and replacement.
Inspect Paint – Address peeling or blistering paint issues.
For Roofers – Inspect for missing or loose shingles or any weaknesses that could lead to future leaks and water damage.
Garage Door – Make sure seal is tight and weather-strip as needed to keep critters out and prevent drafts.
Check Gutters – Once the leaves have fallen, services like gutter and downspout cleaning can be useful, as well as inspection of joints and brackets. Old or damaged gutters should be replaced.
Driveway – Just as with the foundation, inspect for cracks and fill as necessary. With pavers, replace any loose, cracked or damaged bricks.
Lawn – Clear leaves, reseed patchy areas, deer-proof where appropriate.
Check the Deck – Inspect porches, deck supports, steps and railings; clean, repair and apply sealer as needed.

The list could go on, and every season provides another opportunity to reach out to existing clients and prospects with meaningful information and relevant services. As with any new addition, you will want to make sure that you have the time and capacity to deliver those services in a timely manner and on a regular basis going forward. Specific maintenance services may be applicable to just a season, but you should be able to offer it consistently in the coming years. Seasonal maintenance can be a great way to fill the gap for crews between major projects, but it must be sustainable through your peak season as well.

Maintenance packages aren’t just a great way to open the door to new clients and broaden your service offerings. By providing maintenance on a home or related project, you are extending the life of your product and the life of your relationship with your client.

Texas Home Building by the Numbers – July 2016

Posted on August 5, 2016 by Erika Carruth

Based on HBW’s latest permit data for residential construction in Texas, here are the highlights in home building last month.

In July, there were 5,138 housing starts with a total construction value in excess of $1.2B in the combined metro areas of Dallas, Houston, Austin and San Antonio. Dallas led for the highest total construction value with more than $539M in new permits, while Houston led for total starts (2,104 permits). Out of the hundreds of active home builders, D.R. Horton had the most housing starts on file statewide (500 permits) and the highest number of new residential construction permits of any builder in the metro areas of Houston and Dallas.

TX new residential construction permits – July 2016

When reviewing the average value of new homes started in July, Dallas continued its lead and held steady with an average value of $297,808. Two areas that had month-over-month increases in average value were Austin and San Antonio. Austin was up by approximately 10% since June with an average value of $256,686, and San Antonio was up by 7% with an average value of $241,148. Houston held the lowest average value of housing starts in July at $183,489.

TX Average Value of Housing Starts – July 2016

Taking a look at the top counties throughout the four major metropolitan areas, counties in Dallas and Houston dominated the chart. As noted in our recent Q2 Report, Harris County of Houston has been a top location for new residential construction through the first half of the year, and it continued to hold the top spot through July with 1,120 housing starts and close to $196M in construction value. Tarrant County in Dallas was a distant second with 522 new residential construction permits and approximately $126.2M in total value. Also in the Dallas area, Collin County was third highest for housing starts with 502 new permits and nearly $155M in construction value on file with HBW.

TX Top 5 Counties for Total Permits – July 2016

Information utilized for the graphs and above listed figures for Texas residential construction was directly derived from HBW 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.

Are You Ready to Make Contact?

Posted on August 3, 2016 by Erika Carruth

With HBW you have the solid leads, but to make the best use of those contacts, you must be prepared with the proper information and materials to gain their interest.

HBWeekly Contacts

Leads are like gold to any business, but to get the most out of your first contact, you should be prepared for any potential client and all potential questions. Although you can’t look into a crystal ball to know your lead’s needs and budget, you can be sure to have all resources and materials ready for distribution to help guide them in the process. Although no one list of must-haves can prepare you for every possible scenario, there are a few primary materials and areas to keep in mind before reaching out to a lead to offer your services.

Marketing and Other Materials – We all know the basics from brochures to business cards, and if you checked out my previous post on assessing if you need a marketing materials makeover, you should have your primary marketing pieces up-to-date and presentation-ready. Aside from being current, you should also have all of your materials available in digital copy, whether as a downloadable pdf. on your website or as an email attachment. Additionally, the core essentials should be solid and readily available; such essentials include company background and fact sheet, executive team bios, product/service fact sheets and client list.

Get Digital – So your business may be accessible online, but what about you, the home builder? Do you have an online profile? If not, you should think about developing one. An online profile is a great way to show your expertise beyond the company and as an individual. Have clients provide testimonials and build your personal credibility. A solid company name and reputation is important, but people like to work with people, and a strong digital profile as an individual is one step in gaining their trust and building the relationship

Calendar – Don’t make contact without an idea of your project schedule. If your lead is interested in your services, often they will want to know how soon you will be able to be onsite, get started and/or a time frame for completion. Throwing out an arbitrary date to appease them is an easy way to break trust and have a frustrated client down the road. Be clear about your schedule and ready to offer a realistic time frame for meetings and project scheduling.

Incentives – Do you have any discounts or package deals that you can offer that will entice your contact to get started sooner rather than later? Perhaps there is a discount available on materials with a supplier through the month, or maybe an unexpected opening next week rather than next month. By providing incentives to begin the process as soon as possible, you may be able to keep your contact engaged. Be careful, you want to avoid high-pressure sales as that can often result in a lead slipping away early in the process.

Ask Questions – You heard me right. By asking a few simple questions you can gain a better sense of how serious the prospect is about your services, his/her needs and how much time you should spend with them. Examples of basic questions to ask are as follows:

What’s the scope of the project?

When are you looking to start and complete the project?

How soon will you be making a decision?

Are you getting other bids/proposals?

Although asking questions is important, you won’t get very far unless you are also a good listener. Avoid being reactive and overselling yourself – Less is more when going into specifics. Try not to go into too much detail about costs or make promises that you won’t be able to keep. When in doubt, offer to answer those questions in a follow-up email that can provide the accurate details they need and will buy you time to customize the quote and proposal based on their input.

No matter how prepared you are before making contact, you will not make headway without proper follow-up. By having materials ready, listening to their needs and following up in a timely manner, you can develop a strong relationship that will lay the foundation for future projects.

Growth in Florida Residential Construction through Q2

Posted on July 29, 2016 by Erika Carruth

Through the second quarter of this year, residential construction in NE Florida reflects year-over-year growth of 30%, and Central Florida leads for total housing starts.

fl building review hbw

It’s no secret that real estate is hot in Florida. South Florida was recently ranked the 25^th most stable housing market in the nation (source: Freddie Mac), and the Orlando area experienced a home price increase of nearly 7% in May in comparison to last year. Overall, Central Florida’s home prices are above the National average (source: Orlando Business Journal), and Tampa recently ranked #1 and as a top place for where Americans are currently moving (source: Realtor.com).

When it comes to new residential construction, the Sunshine State continues to shine. We are already halfway through the year, and every region in Florida from the Northwest to the Southeast is ahead of 2015 in housing starts. Based on HBW’s latest Building Activity Trend Report (Q2), Central Florida is ranked #1 in the state for total housing starts (6,842 permits) through the second quarter, and the Northeast is a standout for growth with a year-over-year increase of 30% in new residential construction (thru Q2). Southwest Florida is next in line with nearly 6,250 housing starts through June and a healthy 13% increase in comparison to last year. All southwest counties with the exception of one rank in the HBW Top Ten (see graph below) for total new residential construction permits on file for the given period. West Florida has seen a 10% year-over-year increase in housing starts and with 6,174 new permits on file, it ranks third for total starts through June. While the northwest region ranked fifth for total housing starts, it was second highest for growth with a 16% increase in comparison to 2015.

FL Residential Construction thru Q2 2016

According to a recent article in the Sun-Sentinel, South Florida home prices are on the rise. (source: Sun-Sentinel). Based on HBW reports, the southeast region is leading the state in higher value (>$500k) new residential construction as well. Through the second quarter, nearly 625 housing starts were valued over $500k in South Florida. Central Florida was second highest with 522 higher value housing starts through June. While the northeast region is currently leading for growth (30%), it ranked lowest for new construction valued over $500k.

FL Residential Construction >$500k (Q2 – 2016)

When narrowing our view to counties, the higher concentration of new home construction was wider spread, with top counties being in four out of the six regions reviewed. Orlando’s (Central Florida) Orange County ranks #1 for total housing starts with 2,840 new residential construction permits through June. In an effort to meet the housing demand by the new residents migrating to the Tampa area, Hillsborough County (West) is second highest for new construction with 2,117 housing starts, and the adjacent county of Polk is fourth with 1,637 housing starts through Q2. In the Jacksonville (NE) area, St. Johns County has experienced a major year-over-year increase of 50%, and it ranks fourth highest for new homes with 1,788 housing starts so far this year. In the southwest region, four out of five counties made the top ten list this period, and Lee County was fifth highest statewide for housing starts (1,624 permits).

Top 10 Counties for New Residential Construction - Q@ 2016

Top 10 Counties for New Residential Construction – Q2 2016

Texas Residential Construction Quarterly Report

Posted on July 27, 2016 by Erika Carruth

Although there was a 7% dip in residential construction through Q2, San Antonio and Austin continue to grow in housing starts. tx hbw reports

The quarterly figures from the HBW database are in, and just as reported in our most recent Texas monthly review, the areas of San Antonio and Austin continue to shine for growth in the Lone Star State. Although slower in growth, Dallas and Houston led Texas for total housing starts through Q2, and Houston was on top with nearly 14,000 new home starts so far this year.

Overall, Texas has experienced a 7% drop in new residential construction activity in comparison to the same time last year. Despite the overall decrease in housing starts, San Antonio is up by 5% and Austin is up 12% in housing starts in comparison to 2015.

TX Residential Construction thru Q2 2016

By county, growth is apparent in parts of every major metro area aside from Houston. Comal County of San Antonio has seen the most growth in housing starts this year with a nearly 38% increase in comparison to 2015. Travis County in the Austin area is also experiencing growth in residential construction this year with close to a 19% increase in activity and more than 3,000 housing starts on file through Q2. In the Dallas area, Ellis County was third highest for growth with an approximate increase of 18% in comparison to last year.

Growth aside, there are some areas that have continued to dominate in total new residential permits this year. Using the HBW permit reports, we are able to identify the highest concentration of housing starts for any given area. When looking at the top counties for new residential construction, activity is somewhat consistent with the first quarter of the year. Harris County in Houston is maintaining its massive lead with nearly 7,200 housing starts through Q2. Collin County in Dallas is also holding steady as the second highest for new permits with approximately 3,250 starts on file so far this year. A slight change in the top five can be seen with Travis County (Austin) jumping one spot from the start of the year to third highest for housing starts in the second quarter with 3,031 new residential construction permits. The county of Tarrant (Dallas) is up one spot with 2,730 housing starts, and Fort Bend County (Houston) dropped two spots and closes the top five with 2,707 housing starts so far this year.

Texas Top 5 Counties for Total Permits (thru Q2)

As far as higher value residential construction (> $500k) is concerned, there have been more than 1,700 homes with values in excess of $500k started through Q2. The state has seen quarter over quarter growth of 4% in higher value homes. If the figures remain consistent for the remainder of the year, 2016 will look similar to 2015 for high value residential construction. Dallas, which was named the third hottest housing market in June (source: Realtor.com) was #1 for higher value housing starts with 966 new permits through the second quarter of this year. Houston ranked next highest with 422 housing starts valued over $500k.

Texas Residential Permits >$500k (thru Q2)