New home construction in the state of Texas is gaining steam, according to the most recent Texas Housing Insight report by the Real Estate Center at Texas A&M University. Construction permits for single-family homes increased 14.1 percent year-to-date (to August 2018), with Texas remaining the leader across the United States with 16 percent of total national permits.
Austin reached a decade-high in construction permits in July 2018 and has experienced 18 percent growth year-to-date with 1,459 permits issued. Permits also surged in San Antonio, with growth of 27 percent, while total permits were largest in Houston and Dallas-Fort Worth. Additionally, the Texas Residential Construction Cycle (Coincident) Index, a measurement of current construction activity, increased to its highest level since 2008, with momentum expected to continue into the fall, according to the report.
Housing sales overall in the state of Texas were down slightly 0.4 percent, following a record-breaking July, while “homes flew off the market at a record pace, corroborating the continued strength of demand,” according to the report.
Texas’ months of housing inventory was up slightly, but, at 3.6 months, was still slightly below last year. New listings in the MLS gained traction and neared record highs. Almost half of August’s new listings were under the median price in the state. Homes above $500k had the largest increase in inventory, with a 10.8 percent year-to-date increase and 9.2 months of inventory. Months of inventory for homes in the $200k-$400k range was around 3.5 months after an increase of 4.8 percent. Months of inventory for homes below $200k was at an all-time low of 2.7 months.