DFW home starts were up 20% in the first quarter making it the top US homebuilding market. Houston did hold that title, but Houston’s home starts fell 10% in the first quarter lowering it below DFW. This is big news for DFW as Houston had held that position for many years before this. Houston led the country in single-family home builds for years before this most recent fall. Analysts project the reasoning to be the impact of lower oil prices and layoffs in the energy sector. Because of all this Houston area builders have grown cautious and pulled back on starts.
Broken down, the numbers are DFW had an annual start rate of 28,878 houses and Houston 27,263 houses. It is expected that Houston starts have peaked and will continue to decline at a quick rate of 10% for at least the next year. North Texas is anticipated to have the opposite, home starts will continue to grow by 10% for at least the next year. So, for at least another year DFW is expected to hold on to the position of top US homebuilding market. DFW has a strong economy and a high employee growth rate at the moment, which is fueling the homebuilding spike.
(And we expect the fact people are realizing Dallas’ superiority of Houston factors in too.)