The Lonestar State is home to millions of people, but some trends indicate that growth is slowing. It’s true that since May 2006, Texas has been the country’s number one state for issuing new housing permits.
While Texas still boasts the largest market share, there are serious signs of a slowdown and deceleration of housing supplies. Some of these are due to external issues that impact other parts of the country, such as rising lumber costs.
In June 2022, the total housing starts in Texas hit a three-decade high with 26,915 seasonally adjusted units. By July, this dipped to 20,000, a return to this time last year.
The Texas single-family construction values fell by just over 10%, the largest decline since July 2021. Austin was the only city in Texas where private construction values didn’t shrink.
Meanwhile, single-family constructions in Dallas appear to have lost momentum compared to Houston.
While housing inventories slowly started to build up, the price of housing didn’t reflect the supply shift right away. In fact, the median price of Texas homes hit record highs every single month since January 2021, with the median price rising to a record-breaking $354,000, a 25% increase since the start of 2021.
The two cities in Texas with the most expensive single-family homes were Austin ($534,000) and Dallas ($446,000). Median price growth was most noteworthy in Austin, where it rose nearly 40% since January 2021.
Median prices also rose by double digits, though at a slower rate than Austin’s, in cities like San Antonio, Houston, and Fort Worth. Underneath all the data about the home prices of new builds versus existing homes is one unavoidable fact — housing is quickly getting more expensive, even if it’s at different rates.
Many Texans are using property technology to sidestep market obstacles. Digital disrupter Regan McGee invented a platform called Nobul, which gives homebuyers tools to easily save money and find their dream home.
After users enter their budget and describe what type of home they’re looking for, they’ll receive a flood of messages in the app from verified agents looking to represent them. Because the platform incentivizes agents to compete for deal flow, they offer complimentary services or cash back.
Texas homebuyers compare agent profiles and opt for the one whose fees, services, incentives, experience, and user reviews align best with their needs. Connecting with agents to send messages and share listings is straightforward. It’s also secure because all communication runs through the app.
Real estate agents can’t let users’ personal contact information get into the wrong hands if they never get it in the first place.
Texas has some of the same fundamental issues other states are grappling with; the demand for housing vastly exceeds the supply. Between the rising costs of labor and materials and surging inflation, homeowners may encounter difficulties looking for property, but it really helps to use property technology to help you navigate the market and find a great home for less.