In regards to new home starts, the Houston real estate market is currently leading the nation. Houston has also managed to keep property value from falling during recent years. Unfortunately for homebuilders, new fees and regulations for home construction are also on the rise.
With all of the new homes being built this year, and in recent years, Houston homebuilders have not been without work to be done. Yet, according to the Greater Houston Builders Association (GHBA), the cost of building new homes has increased substantially for homebuilders due to new building fees and regulations.
As fees raise the costs of building, homebuilders are unable to raise the prices of new houses because of the restrictions created by economic strife. Because of this dilemma, sales of new homes have reached a 48-year low.
The way the market runs now, homebuilders are not a top priority. Home buyers are able to buy the best quality homes for the lowest prices possible; while building costs have gone up thanks to new building fees, selling prices of homes have not yet been raised. The focus is on making homes affordable for potential buyers.
The GHBA is a trade organization comprised of members involved in industries of developing, homebuilding and remodeling in seven counties. The main purpose of the organization is to work with the government and the community to create the most positive atmosphere for its members and to provide quality, affordable housing to the communities it serves.
Homebuilders and the GHBA are remaining optimistic, with the belief that selling prices will need to be raised eventually to keep up with rising building costs. Houston is currently one of the top 10 searched for cities in regards to real estate, which means the homebuilders should not find themselves out of work anytime soon.