Houston 'top of the list in home building' in the countryAs construction markets across the country continue their slump, and home builders and workers wait for buyers, homes in Texas and especially Houston still are going up.
“Houston's at the forefront of the country,” said Mike Dishberger, owner of Sandcastle Homes and secretary of the Greater Houston Builders Association. “It's at the top of the list in home building, and that's the same for Texas. There are a lot of oil companies moving people into Houston and consolidating operations in Houston, and that brings in more people.”
At Sandcastle Homes, which builds about 50 homes a month, a dip in March has been followed by a “fantastic” building rate in April and May. Dishberger said the recent U.S. government stimulus package's tax credit will help the situation by encouraging new-home construction.
“The industry in Houston is going to be pretty stable here,” he said. “We're expecting an uptick in sales toward the end of the year because the tax credit expires at the end of the year on Dec. 30, and we've started some homes in anticipation of that.”
Houston is one of the hottest places for population growth, which fuels the need for new housing. According to the U.S. Census Bureau, the greater Houston area added more than 130,000 new residents between July 1, 2007 and July 1, 2008; according to the Texas Association of Builders, the state will add 12 million new residents by the year 2030. And with money slowing being eased back into the economy for building, the housing growth is expected to continue.
Terry Swenson, the public relations director of the GHBA, said banks are expected to relax their conservative approach to lending.
“As soon as the money from lending institutions is freed up, we'll see the numbers increase,” she said. “We have a huge pent-up demand for new homes.”
Which means there is plenty of work for current subcontractors, though not as much for people who want to enter the market.
“We have the right amount of people we need to do the work,” Dishberger said.
While many builders have decided to remain conservative in their hiring until the lending market increases, Dishberger said some construction jobs will continue to be needed.
“The ones that will be in high demand will be licensed professionals such as plumbers and electricians,” he said. “If you lose those people, they're harder to replace, so there will always be a place and a demand for them.”
In the meantime, construction workers may see a light at the end of the economic tunnel.
“This industry has slowed down, but in Houston the building industry always has potential for growth,” Swenson said. “The potential here is optimistic.”
