There’s nothing quite like building your dream home, and over the last year, the Austin area has seen more new home construction than ever before. In January, experts predicted 8,800 to 9,600 total new home starts for 2013, a 10-20 percent increase over last year. Based on the latest data on home starts, Austin is well on its way to meeting or surpassing these numbers. 2,650 homes are currently under construction in the Austin area, which is a 32 percent increase in the second quarter of 2013 (April- June). Austin also saw 9,027 home starts between June 2012 and June 2013, a 38 percent increase. And the development of new Austin homes is expected to keep growing.
Despite the considerable increase in new home starts, builders are struggling to keep up with Austin's growth. The number of vacant developed lots (VDL) in the Austin area continued its decline in the second quarter and new construction has started on 300 more homes than there are VDL available. Between April and June, only 2,321 new VDL were added, bringing the total for 2013 to 4,823. Furthermore, the high demand for Austin homes means local contractors are overwhelmed with new projects, making it more difficult to find available plumbers, framers and drywallers to work on new properties. As a result of this shortage, it is taking longer to build new homes in Austin. In the meantime, those moving here right away must choose from the 1,200 new homes available immediately, a very small number in this hot market.
What’s causing new home construction to come up short? A boom in the local population. Since 2007, more than 17,000 new residents (on average) have moved to Austin each year. Furthermore, experts estimate that more than 27,000 new people will move to Austin each year for the next three years. It seems that more and more people are taking notice of Austin's booming economy and available jobs. And seeing as this growth is expected to continue, Austin area builders will have to work hard to find a solution to meet the high demands of new homebuyers. Although it's taking longer than usual to build a new home in Austin, buyers can do their part by becoming pre-qualified to build and have a plan in mind for their home before meeting with a builder. Now is the perfect time to create your dream home in the Austin area, so be sure to contact one of our Realtors who can help you find the lot you've been looking for.