WASHINGTON, April 3, 2014 — Texas-based home construction companies like Megatel Homes have seen a recent increase in consumer demand for their product. Texas now leads the nation in new home sales. In 2013, 30 percent of all homes purchased in Texas were new. That’s nearly double the national average of 16 percent.
The 2014 Texas Homebuyers and Sellers Report details many of the contributing factors, like higher incomes. Median incomes of Texas homebuyers grew twice as fast as in the rest of the U.S.
“Households are earning more income and new home development continues to play an increasingly important role to meet our state’s ever-increasing housing demand,” says Dan Hatfield, chairman of the Texas Association of Realtors.
Megatel Homes agrees. “The housing market fluctuates, but in our 30 years of business, this is one of the most exciting times to be in the industry,” says a representative. “Texans are making more and they want to invest that money in a quality custom home.”
Home sales are tied directly to the health of the economy. Recently, the Texas state economy has performed better than the national average. Texas homebuyers earn an average median income of $91,700. That’s a 9.6 percent increase from 2012 to 2013 and nearly $10,000 above the national average.
It makes sense. With more money to spend, homebuyers have more options available. Instead of opting to rent or buy an existing home, a large number of Texas consumers are investing in new homes. Megatel Homes and other home construction companies in the area are helping meet that demand. The Houston, Dallas-Fort Worth, Austin and San Antonio markets are all experiencing a real estate boom. These metros are listed on the Urban Land Institute’s watch list for 2014.
Income isn’t the only contributing factor. The above metros are also experiencing job and population growth. Workers have started migrating their families to Texas for better opportunities and a more affordable housing market. Compared to more established areas like New York, Los Angeles or San Francisco, Texas real estate is very affordable.
All these factors also mean limited inventory. There is not enough housing to meet demand as more families move into the area. Megatel Homes and other home construction businesses are seeing an increased need for new homes, as new and existing residents face a small real estate pool of already established houses. And with mortgage rates lower than ever, investing in new construction instead of purchasing an existing home makes economic sense for a lot of buyers.
Currently, businesses like Megatel Homes are feeling challenged to keep up with the new housing demand. Housing prices are expected to increase sharply in 2014, leading more buyers to consider building their homes instead of buying.
“The timing is perfect right now. The current supply/demand relationship, interest rates and economic growth are all contributing to the right time to build a new home in Texas,” says Megatel Homes.