It comes as little surprise as to why the real estate industry in Texas is at such a boom. Texas has been known for its cheap property, which is why the bidding war is getting hotter by the day. Homeowners in Austin, Dallas, and Houston have seen their property prices increase sharply over the course of the past few years. Experts have pointed out how the state has avoided the economic crash that started in 2006 through employment growth, with oil and gas playing a major role in the booming economy of Texas. However, in the growing real estate industry of Texas, homebuilders are left with the dilemma of high demand by restraints on workforce to complete the projects.
Employment Growth Playing Its Part
On average, there has been hiring for 19,000 real estate and housing jobs in Texas per month in 2013. This shows the increasing demand for housing in the Lone Star state. The state had a 6.4% rate of unemployment in August, 2013, which was about 1% lower than the nationwide unemployment rate. Dallas and Houston have experienced the highest rates in employment growth. The increasing employment rate has led to better living standards, which is why more people in Texas today seek mortgage loans to secure homes. Hence, builders are finding it hard to cope with the increasing demand for housing in the state.
How the Excesses Stayed Intact
Laws in Texas limit the borrowing of home equity, which has saved many homeowners from lending excesses. Values of properties inflated rather slower than other states because of the relative access of land and streamlined zonal requirements for building properties. The recession did lead to many homebuilders closing down or downsizing as a result of banks becoming reluctant to approve construction loans. However, the resurgence in the housing industry following the recession saw the demand for skilled and unskilled labor go up. This led to the numbers of homebuilders increasing once again. And this factor has not just influenced the major cities in the state, with San Antonio and Austin also experiencing growth in their respective real estate markets.
The housing market in Texas is slowly starting to resemble what we find in the rest of the US, but with more affordable prices. Though the prices of single unit homes and condos have gone up in cities like Dallas and Houston, they are still relatively affordable, given the high income levels in the state.