August 4, 2017
The Texas housing market held steady as supply slowly expanded in June 2017, while demand remained stable. However, very limited supply for houses priced below $300,000, combined with stagnant wages and increasing construction costs, means affordability remains a problem, according to the Real Estate Center at Texas A&M University. The Texas Housing Affordability Index is at its lowest point since the housing crisis.
Though construction permits statewide increased 2.9% from May 2017 (a 12.5% jump, year over year), builders continue battling against rising costs, regulations and labor shortages, the analysts said. The number of vacant developed lots (VDLs) increased in supply constrained markets such as Austin and Dallas.
Texas’ months of inventory surpassed 3.9 months for the first time since 2014. The Real Estate Center noted that six months is considered a balanced housing market.
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