Tuesday, January 19, 2016

2015 homebuilding boom nowhere near craziness of decade ago

Stacks of bricks are ready to go on a new home in Frisco’s Richwoods subdivision. Although 2015 was North Texas’ best year for home starts since the recession, it was far below the level of 2005, when subprime lending ruled.

Office construction, apartment building, shopping center vacancies, industrial leasing — almost every sector of North Texas’ property market is ahead of where it was before the Great Recession.
With one exception — homebuilding.
For all of 2015, local builders started just under 28,000 homes in the Dallas-Fort Worth area. That’s double where home starts in North Texas were during the worst of the economic downturn in 2009.
But home starts last year were still about 40 percent below where they were in 2005 before the recession.
That year, builders cranked out starts on around 50,000 North Texas houses.
It’s a one-year building record that will stand awhile, industry analysts say.
“I don’t see us getting back to that kind of construction anytime in the foreseeable future,” said Ted Wilson, principal with Residential Strategies Inc., a Dallas-based housing analyst. “I think the best we might see is maybe 40,000 homes.
Link to full article here
By Steve Brown for The Dallas Morning News