Austin Area Home Starts Up 32% in 2nd Quarter

New home construction in Central Texas continued to rise in the spring as builders began construction on 2,650 homes, a 32 percent increase year-over-year, figures released today show.

The increase bumped the annual starts tally to 9,027 homes in the 12 months that ended in June, a 38 percent increase from the previous 12 months, according to Metrostudy, which tracks the numbers.

New-home demand in the Austin area continues to overwhelm supply due to the region’s job and population growth, said Madison Inselmann, regional director of Metrostudy. The area has added jobs in each of the last 13 quarters, he said.

“Now that Austin’s economy is firing on all cylinders, builders can’t finish homes fast enough to meet growing demand,” Inselman said.

Since 2007, the Austin area has averaged 17,100 new residents a year, according to Metrostudy. And with limited inventory on the ground, those newcomers have rented apartments or bought pre-owned homes.

More than 27,000 people are expected to move to the Austin area in each of the next three years, Metrostudy said.

“If a new home is not available within their timeline, they will rent or buy an existing home,” Inselman said. “Either way, the new home market benefits as apartment occupancy rises and the supply of resale homes disappears.”

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