Fast-Growing Texas Housing Market Faces Headwinds in 2021
Existing-home sales in Texas hit a seven-year high in 2020, but the Texas Real Estate Research Center expects growth to decelerate in 2021. The single-family sector faces headwinds, ranging from depleted supply to the COVID-19 pandemic.
“Homebuilders are trying to satisfy demand in the lower price cohorts by building homes in the suburbs or outer city borders where land costs are lower,” said research economist Dr. Luis Torres. “This trend was prevalent before the pandemic but has become even more widely adopted over the past year.”
Nevertheless, the Center expects the price per square foot to accelerate about 8% in 2021. “Some of the appreciation is due to exhausted inventory at the lower end of the price spectrum forcing buyers toward higher-priced homes,” Torres said.
Regarding the pandemic, Torres said, “Because this recession was caused by a health catastrophe, the recovery path could be different than that of previous recessions.”
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).