Blame it on the rain! Austin area home building pace slows
AUSTIN – Central Texas home building is off to a slow start in 2015, according to Residential Strategies Inc.
The 2,717 housing starts marked a 12.3 percent decline from the 3,099 homes that builders started in first quarter 2014. The annual starts rate through March was 11,967, slightly lower than the 12,349 annual pace posted in 2014.
Residential Strategies cited a higher-than-average amount of rain, particularly in January, for the lower-than-anticipated number of housing starts.
The Austin area continues to have healthy job growth, the main driver for new home demand. The Texas Workforce Commission said the region added 22,800 new jobs during the 12 months ended in March, a 2.5 percent growth rate.
New home closings increased 13.4 percent in 1Q 2015, with buyers moving into 2,542 new homes. The pace of closings continues to push higher and now stands at 10,330 for the annual total through March.
New home inventory rose 28 percent over the last year for a total of 7,454 homes at the end of 1Q 2015, a supply of 8.7 months.
However, most of that inventory — 4,914 houses — is in the “under construction” category. Builders are continuing to increase their model homes as new communities open across Central Texas.
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