Housing Starts in Houston Drop in Q1 2016

The Houston metro, which had reigned first in Texas for housing starts, came in second place to Dallas-Fort Worth during the first quarter of this year. Houston clocked in with 27,263 starts, whereas Dallas had 28,878 starts, according to Metrostudy.

Metrostudy’s 1Q16 survey marked a total of 6,025 new homes in inventory, down 5% year over year. During the same period, the number of completed vacant homes in inventory was 6,059, a 53% increase from 3,949 during 1Q15.

It’s possible that builders put the brakes on starts, to absorb some of the inventory. The percentage of all homes in inventory is currently above the 35% equilibrium threshold identified by Metrostudy, at 37.8%.