Houston building frenzy = shortage, lack of workersHouston building frenzy = shortage, lack of workershttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=61352013-10-04T13:05:00Z2013-10-04T00:00:00Z

HOUSTON - Houston’s home building frenzy has brought with it a set of new challenges, including competition for a shrinking supply of lots and lack of available contractors to carry out the work.

Lots in Houston are in short supply for the first time in many years. There were between 60,000 and 70,000 lots in inventory at the top of the real estate market between 2006 and 2007, compared to fewer than 40,000 today, said David Jarvis, director at Metrostudy.

The Houston area needs to carry at least 50,000 to 60,000 lots in inventory to keep up with the current pace of building. Because of that, some of the larger national builders, and even regional and local builders, are developing lots themselves.

Because many contractors — including concrete, electrician and plumbing companies — scaled back during the downturn, it is becoming increasingly difficult to line up contractors to fulfill the demand from builders. In the past contractors typically needed between two and three days lead time to arrive on a job site. Now, it takes at least two weeks to secure contractors.

There were 26,075 new home starts in the 12 months ended June 30, compared to 20,955 in the prior-year period. This heated pace is expected to continue for the foreseeable future.

Houston Business Journal
Houston-The Woodlands-Sugar Land
http://www.bizjournals.com/houston/print-edition/2013/10/04/houston-builders-face-lot-shortage.htmlRead more at {Source}

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