Posted on 06/19/2018 12:00:35 AM PDT by 2ndDivisionVet
New jobs and homes are booming in the Greater Houston area: it is ranked No. 4 in the nation for top job growth markets and No. 2 for adding new homes.
The data is from a new Metrostudy report released May 10 on the first three months of 2018; the report looked at the Houston economys job growth and population.
With regard to employment growth, Houston came in below the New York, Dallas and Los Angeles metros with a total employment of 3,058,500 in February 2018. That is an annual growth of 67,100 jobs, or 2.2 percent, for Houston, according to the report.
Job growth
In 2013 and 2014, Houston added 122,600 jobs and 116,700 jobs, respectively. When the oil and gas industries stopped hiring in late 2015, 2,500 jobs were lost in the area, and even in October 2016, 7,300 jobs were lost, according to the Texas Workforce Commission.
By sector, the industry adding the most jobs is professional and business serviceswhich added 25,400 jobs this year. The next-highest field is construction, which added 9,300 jobs. Food services, retail trade and real estate and leasing also added thousands of jobs over the same time period, according to the report.
Industries that lost workers this year include finance, insurance and information, according to the Texas Workforce Commission.
New homes
Houston ranked No. 2 in the nation in terms of new homes addedsecond only to the Dallas/Fort Worth area, which has 33,601 new homes under constructionwith 27,675 new homes under construction over the past year, an annual increase of 7.3 percent. Austin ranked No. 9 with 16,457, and San Antonio is ranked 13th at 11,122.
In the first three months of 2018, Houston added 6,693 new homes under constructionthe second-highest first-quarter starts in a decade. Last year, the number was 6,368, and the year before was 6,339.
However, luxury is being favored: Metrostudy reports that new home starts priced below $199,000 are down 66 percent since the first three months of 2010. Homes in the $200,000-$299,000 price range are up 114 percent since the same time period, and homes in the $400,000-499,000 range are up 261 percent.
The multifamily market
Houston added 12,941 apartment units during the first three months of 2018 at an average rental rate of $1,022 per monthor $1.16 per square foot. There were 41 complexes under construction, including 10,466 residential unitsup from 2017, but not quite reaching 2016 levels, according to Apartment Data Services.
As for resale of existing homes, 13,541 have been sold as of March 2018an increase of 3 percentat an average price of $269,376, up 2 percent, or a median price of $214,000, a 5 percent increase. There were 15,951 active listings that spent an average of 54 days on the market, according to the MLS. The study shows that inventory is declining while sales are increasing, at least compared to anything more recent than 2013.
The Metrostudy predicts construction will start on 28,325 new homes throughout 2018 with 27,450 closings, and that 2019 will see 28,750 new starts with 28,375 closings.
>>However, luxury is being favored: Metrostudy reports that new home starts priced below $199,000 are down 66 percent since the first three months of 2010. Homes in the $200,000-$299,000 price range are up 114 percent since the same time period, and homes in the $400,000-499,000 range are up 261 percent.
It’s not considered “luxury”. Blame the city government (which is bed and has been in bed with developers for decades now).
Mayor Leepy Brown didn’t like that there were houses worth less than $250,000 in Houston. Said they weren’t bringing in enough on the tax rolls.
And Brown was followed by Mayor White and Parker and now Turner.
Starter homes are a thing of the past.
Don’t tell the Democrats; their heads might Explode!
“Houston metro ranked No. 4 in job growth; No. 2 for adding new homes, Metrostudy says”
Where does it rank as a sucky overcrowded congested democrat big city shithole?
Mayor Leepy Brown didnt like that there were houses worth less than $250,000 in Houston. Said they werent bringing in enough on the tax rolls.
...
Aren’t property taxes in Texas high?
Yes, but the lack of a state income tax helps to ease the pain.
Part of it is also that the costs of construction materials are way up, compared to most of the last decade, so it’s going to cost more to build the same. Then also underlying inflation.
And we’re back to juicing the housing market, diverting capital there, at the expense of ‘less important’ uses, like building and upgrading factories. Go figure.
Wonder how many families with kids are moving to Houston, and how many kids per family with them. If Houston isn’t careful it’ll go the way of San Fransicko.
Just checked zillow for the prop tax on a $330,000 house in the city of Houston: over 9 grand, and that was up 50% from the previous year. If folks bought less expensive, they could save the money they’d’ve paid in prop taxes and put it away for their retirement. Willingly paying that is nuts.
What was one house lot is now subdivided into 3 or 4 townhome/skyrise dwellings 2-4 stories tall per ‘house’.
More tax for the same amount of land. More flooding too.
Compared to San Diego, San Francisco, Boston, etc properties aren’t as expensive (and taxes are based on assessment).
Transplants pay more because they can sink the money from their old in property.
Also real estate investment is global now and not just on the coasts.
Arent property taxes in Texas high?
~~~~~
Yes, but the lack of a state income tax helps to ease the pain.
Thanks for pointing that out. Folks tend to forget/overlook that, when mentioning Texas’ high property taxes.
Wonder how many families with kids are moving to Houston, and how many kids per family with them. If Houston isnt careful itll go the way of San Fransicko.
Most of those moving into and buying homes in the GREATER Houston area are families with children.
Our suburbs are growing with new, master planned developments/shopping centers, office buildings, etc. in every direction from Houston.
Most new homes, in these suburban areas, begin in the $350K + range. A very few are now beginning to spring up in the $200K range (traditionally starter homes, for many).
“What was one house lot is now subdivided into 3 or 4 townhome/skyrise dwellings 2-4 stories tall per house.”
Yep, it’s called ‘infill’ here. Tear down a shack on a 1/3 acre lot and build 3 or 4 skinny, 3 story units, and then charge over $500k for each with a shared driveway and tiny garage.
I can’t say that I really blame the politicians for pushing it...if the people are stupid enough to buy them, so be it.
BTW, thanks to recent tornado activity, our property insurance now accounts for 20% of that mortgage payment, and it won't decline anytime soon. We're having to replace our roof after being attacked by baseball size hail last week.
“Just checked zillow for the prop tax on a $330,000 house in the city of Houston: over 9 grand, and that was up 50% from the previous year.”
Yep, the sad thing is that Dan Patrick launched his political career on just this issue, and hasn’t been able to do jack with it. Republicans are OWNED in Texas, just as they are in DC, with the exception of Trump.
Both are unstable and lead to busts.
I'd rather see slow and steady which leads to long-term stability.
If people rush there because of the hype and the bottom falls out what's left behind is government dependent unemployed and houses left to decay by banks.
Look at the chart at the link. The bust has happened before and this article seems to be hyping the current trend (which as I said, is never a good model for stable growth).
Fake news...the most property taxes can go up in a year is 10%, and you can appeal the valuation to the local municipality.
When I turn 65 next year, my school property taxes are frozen. There are also other exemptions available to homeowners, such as the homestead exemption.
We had to replace a few shingles on the roof of our family ranch house, in Central TX, due to a tornado blowing through.
What part of TX are you in?
That’s pretty much standard cycles, for Houston. Has been for decades.
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