With nearly 5,000 new residential construction permits on file with HBW for March, Texas home builders continue to take on new projects in the face of the oil slump.
Despite the oil and labor challenges, Texas home builders were responsible for nearly $1.25 billion in new residential construction in March. Although Dallas, San Antonio and Houston experienced slight dips in total new permits in comparison to February, Austin’s 27% increase in activity (vs. Feb. 2016) for the month has the Lone Star State seeing new residential construction totals consistent with figures from February.
As for home builders, the top three remained the same since February, with D.R. Horton continuing to hold the #1 spot for total housing starts in March. According to the HBW database, D.R. Horton had nearly 550 housing starts on file for the month, and took the top spot in three out of four of the metropolitan areas reviewed. The top three builders across the state for total new permits are as follows:
#1. D.R. Horton
#2 Lennar Homes
#3 Pulte Homes
Although the leading builders statewide remained the same from February to March, in each area there are some new additions to the “Top 5” list. Here’s a closer look at the breakdown in each area:
Earlier this month, Houston Business Journal reported that Houston is experiencing a slowing in residential construction due to the oil slump. In the HBW database, Houston also saw a slowing (~ 11% decrease) in housing starts since February. Despite this fluctuation, out of the four Texas areas reviewed, Houston had the most starts on file (2007 permits) for the month. The home builder leading construction in the area was D.R. Horton, with 252 housing starts and nearly $29M in total construction value. Although not in the “Top 5” last month, K. Hovnanian Homes held the second highest spot for total new permits on file with 141 housing starts and a total value in excess of $22.5M. Previously holding the #2 spot in February, Lennar Homes tied K. Hovnanian with 141 housing starts in March and came close to total value with just over $22 million in residential construction.
According to recent reports from the Dallas Business Journal, Dallas home builders are seeing “booming home sales” and an increase in residential construction in comparison to the same time last year. Based on the latest HBW reports, Dallas home building is holding strong as the area was second for total housing starts in March. Out of the 1,579 new permits on file, D.R. Horton held its lead in Dallas with 134 housing starts and more than $28M in construction value. Next in line for total starts and pushing up to the “Top 5” was First Texas Homes. First Texas was second highest for total permits with 93 housing starts. The home builder also took the #1 spot for total construction value in the area with nearly $29.3M in new residential construction in March. Dropping from #2 in February to #3 in March is Pulte Homes; Pulte Homes had 88 housing starts for the month with a total construction value of more than $20.4M.
As previously mentioned, the Austin area saw a 27% spike in housing starts in comparison to February. D.R. Horton led the Austin area for housing starts in March with 154 new residential construction permits on file for the month and a total construction value close to $22.8M. Up two spots from #4 in February, Lennar Homes ranked second highest for total permits in the area with 59 housing starts and a total value in excess of $6.4M. Dropping one spot to #3, KB Homes has 51 housing starts on file for March and a total construction value of more than $7.7M.
In San Antonio, Continental Homes continued to hold the #1 spot for total new residential construction permits. The home builder is responsible for more than 20% of the new residential activity in the area for March, with 86 housing starts on file and a total value of more than $18.5M. Also consistent with February, KB Homes held on to the #2 spot with 26 housing starts and a total value of nearly $6.3M. Just behind KB Homes was Chesmar Homes. Chesmar Homes jumped one spot since February to #3 with 25 starts and a total construction value close to $7.3M.
Information utilized for the graphs and above listed figures was directly derived from HBW construction data reports. To gain access to the HBW database and receive custom and detailed reports on the latest building activity in Texas and beyond, please contact HBW for details.