DFW Home Builders Picking up the Pace to Close Out 2015

Posted by Kenneth G. Cox on Monday, October 12th, 2015 at 8:02am

DFW New Construction Real Estate

It’s safe to say 2015 has been a crazy year for the DFW real estate market, from reaching record breaking sales prices to the delivery of all kinds of exciting new rental projects over the past 9 to 12 months. But because the rental market has been so red hot for the better part of this year and development around the DFW region has had a strong emphasis on new apartments, few can argue it’s resulted in a rather limited inventory of available condos and single-family homes—something North Texas home builders are now starting to recognize.

According to a recent report from Dallas Business Journal, DFW home builders have boosted new home starts in the third quarter by nearly 22% from this time last year in a strong effort to help meet the demand caused so many new jobs continuing to make their way to the region.

Since last August, the Dallas-Fort Worth area has added 103,500 new jobs, which is encompasses about half of the new jobs added to all of Texas over the last year. As a result, home builders started 8,014 homes in the third quarter of this year, but also closed on 6,811 new homes during that same timeframe, according to a report from Dallas-based Residential Strategies Inc. Similar research shows DFW builders started 27,345 new homes in the last 12 months and closed on 23,498.

Even with all the new construction happening, however, the home supply around North Texas is still only around a 1.7 month supply—a far cry from what’s usually considered a normal inventory, which is about a six-month supply.

Poor weather conditions and work shortages have certainly contributed to a slower pace when it comes to home building, and because of the strong demand for trades and subcontractors, labor costs are not surprisingly surging, also putting a cramp in the new construction industry in the area.

So as we enter the home stretch of 2015, things are still a little hectic on the DFW real estate front, and with interest rates still expected to rise sometime before the end of 2015, the outlook is still unclear.

But as we all know, things could definitely be worse.

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