Austin Home Building Plummets, Still Best in Nation
January 30, 2009 22:47 Filed in: Market
Analysis
Across the country, housing starts are down
dramatically.
During 1998, Austin builders started construction on slightly more than 8,000 houses last year. This was the lowest number in 11 years.
According to Metrostudy, a Houston-based research firm, ustin has experienced a 66 percent decline in housing starts from its peak in the third quarter of 2006 to the end of 2008. This 2/3 drop represents a mammoth market shift. The drop, both in Austin and nationally, is the result of reduced demand for new units, restricted credit for buyers and developers, and falling prices which have made speculative projects unattractive.
Incredibly enough, this 66% drop ranks Austin #1 of the 81 markets studied by Metrostudy. Austin's relatively strong economy, continued inbound migration, steady home values, and lack of a bubble run up have helped to limit housing market erosion during the current credit and financial crisis.
Here are additional details form the Austin Business Journal:
A study released Jan. 29 from the housing industry research firm said Austin has experienced a 66 percent decline in housing starts from its peak in the third quarter of 2006 to the end of 2008. That’s the smallest decline out of the 81 markets Metrostudy researched.
“South Florida’s quarterly starts declined 96.5 percent from their peak, and Naples-Fort Myers’ quarterly starts dropped 92.9 percent from their peak, as of the end of the fourth quarter of 2008,” said Brad Hunter, national director of consulting for Metrostudy.
The report also said the U.S. Department of Commerce’s latest reading on new home sales, which show that sales have fallen to the lowest level on record, understate the nationwide problem.
During 1998, Austin builders started construction on slightly more than 8,000 houses last year. This was the lowest number in 11 years.
According to Metrostudy, a Houston-based research firm, ustin has experienced a 66 percent decline in housing starts from its peak in the third quarter of 2006 to the end of 2008. This 2/3 drop represents a mammoth market shift. The drop, both in Austin and nationally, is the result of reduced demand for new units, restricted credit for buyers and developers, and falling prices which have made speculative projects unattractive.
Incredibly enough, this 66% drop ranks Austin #1 of the 81 markets studied by Metrostudy. Austin's relatively strong economy, continued inbound migration, steady home values, and lack of a bubble run up have helped to limit housing market erosion during the current credit and financial crisis.
Here are additional details form the Austin Business Journal:
A study released Jan. 29 from the housing industry research firm said Austin has experienced a 66 percent decline in housing starts from its peak in the third quarter of 2006 to the end of 2008. That’s the smallest decline out of the 81 markets Metrostudy researched.
“South Florida’s quarterly starts declined 96.5 percent from their peak, and Naples-Fort Myers’ quarterly starts dropped 92.9 percent from their peak, as of the end of the fourth quarter of 2008,” said Brad Hunter, national director of consulting for Metrostudy.
The report also said the U.S. Department of Commerce’s latest reading on new home sales, which show that sales have fallen to the lowest level on record, understate the nationwide problem.