DFW’s new home market up 81 percent in past three years

DALLAS-FORT WORTH – Home builders commenced construction on 6,511 new homes during third quarter 2014, an increase of 11.4 percent year-over-year, according to Residential Strategies.

With 3Q 2014 growth, Dallas-Fort Worth has reached an annual start level of 24,454 homes, which is a year-over-year annual start increase of 17 percent. The housing boom is helping replenish the depleted speculative inventory.

"We have had 5,853 closings during third quarter, which is the highest number of closings since the third quarter of 2008," said Ted Wilson, a principal at Residential Strategies.

The affordability of new homes is the primary concern of home builders, who are relatively optimistic about the sustained new housing demand as jobs flock to the region.

"Over the past year, builders have had to digest higher direct construction costs as well as increased lot pricing," said Wilson. "As a result, we are watching builders diversify their product offerings — both geographically and with respect to house size."

Currently, there is a 2.4-month housing supply and the existing housing market is curtailed by the lack of housing supply, not the demand.