By Jim Hynes
Texas land is being absorbed for new single-family development at a rapid pace. According to a recently released study from the U.S. Census Bureau, out of 361 major metros, Houston and Dallas rank number 1 and 2 respectively for the highest number of single-family permits pulled in 2012. Austin and San Antonio were not far behind coming in at 7th and 20th respectively. In fact, Lone Star cities comprise an amazing 47 percent of this list.
So what is driving this building permits increase in Texas?
- Strong demand – Texas leads the nation in population growth and job creation resulting in willing and able home purchasers.
- Business friendly regulations – Land use regulation laws are very builder friendly and allow new permits without much local government intervention.
- Low inventory of resale homes – Inventories are at or below the typical national MLS 6-month supply equilibrium figure.
Rockspring Capital remains very optimistic of the investment prospects for Texas land. Home builders are working overtime to meet the housing demand created by Texas’ population growth and job creation boom with individuals relocating to our state in record numbers.