More than $30 billion worth of homes have been bought and sold in Texas over the past decade.
The number of homes sold in 2016 is almost double the number in 2015.
Here’s what you need to know about the market.
(Jenny Starrs/The Washington Post) The Hill article “It’s been a big boom for us.
The last six years we’ve seen it grow tremendously.”
—Matt Boudreau, Texas home builder, on the boom in Texas home sales.
“Texas has a lot of unique markets that have allowed us to be successful.”
—Mike Mears, Texas state representative, on why Texas is one of the fastest-growing states for homebuilding.
(Photo by Chip Somodevilla/Getty Images) “If you’re a Texas homebuilder, you have a big opportunity.
We have a lot more inventory.”
—Jeff Kostack, president and chief executive officer of The Kostacks, an Austin-based homebuilder.
“We’re building houses that people will love.”
—Tommy McGehee, president of the Texas Association of Realtors, on home sales in Texas.
“This market is still the only market where there are a lot fewer homes that are affordable.
I think there’s a lot for buyers to look forward to.”
—Dana Schlein, president, Texas Homebuilders Association, on trends in the Texas market.
“It is the most competitive market in the country right now.”
—Mitch Wolt, president-CEO, The Home Builders Association of America, on Texas’s home market.
It’s a boom for the homebuilder industry in Texas, and the market is seeing record-breaking growth.
The most recent numbers from Texas Homebuilding Association show the industry has grown nearly 25 percent since 2016.
(Here’s a look at where homebuilders are in the state and the overall industry.)
“The biggest challenges in the market are affordability and the affordability of financing.”
—Andy Riddle, chief economist for Moody’s Analytics, on what the home market needs to do to keep pace with rising home prices.
(Moody’s Analytics) Home prices have climbed more than 300 percent in the past 30 years in Texas and are on track to double that figure by 2025.
According to the Texas Home Builder Association, prices in the Lone Star State have been trending higher for years.
“The house market has been the biggest challenge in the nation for homebuilders,” said Riddle.
“There is a lot going on, a lot happening in the house building industry, a whole lot of supply chain changes, a big influx of new construction.”
Texas homebuyers are taking on higher mortgage payments and debt as their mortgage rates increase.
While the Texas mortgage rate is about 6.8 percent, the average debt-to-income ratio is about 60 percent in Texas—higher than the national average.
“As of 2017, the Texas median home value was $2,842,700,” said Texas Home Builder Association President Mike Mears.
“For the first time in 30 years, that number is $2.2 million higher than it was in the same time period a decade ago.”
The rising price of homes is contributing to a significant number of people leaving the Lone Stars for bigger, better places.
Texas is the second-most-populous state in the U.S. with nearly 1.4 million residents.
“I think we’re going to see a lot less of us here,” said Bouderia, the founder of The Homebuilders.
“So, the biggest challenges for the industry are affordability, and financing.
The Texas Home Building Association has been really instrumental in helping us build that supply chain and help the industry grow.”