COLLEGE STATION, TX – June 27, 2012 – (RealEstateRama) — Permits for new single-unit Texas homes are on the rise, fueling expectations the long-awaited housing recovery is underway.
“Texas building permits in the first four months of 2012 were up 17.9 percent,” said Dr. Mark Dotzour, chief economist for the Real Estate Center at Texas A&M University.
While home building has apparently turned the corner, Dotzour expects the overall recovery to be gradual.
“In Texas and other states that are producing new jobs, new homes are being built,” he said. “Employment in the construction industry will expand to meet demand for new production. The multiplier effect for new jobs in construction is powerful.”
Typically, housing leads the economy out of recessions, said Dotzour. The Odessa-Midland metro area recorded the biggest jump in permits — up 55.9 percent.
Other cities with positive increases in permits from 2011 are Houston (24.9 percent), Dallas (24.3 percent) and San Antonio (23.2 percent.)
Increases have been noted in Austin (8.5 percent), Fort Worth-Arlington (4.8 percent) and El Paso (3.1 percent.)
Those eight cities logged 24,160 single-family building permits in the first four months of 2012. Last year at that time, the total was 20,495.
“There is good news for the rest of the country as well,” said Dotzour. “Permits across the United States were up 18.7 percent during the same time.
“This appears to be the beginning of the next stage of economic recovery in Texas and the nation.”
For more discussion on this, see Dotzour’s blog post at http://blog.recenter.tamu.edu/.
Additional research information:
Dr. Mark Dotzour, 979-862-6292 (chief economist)
Dr. Charles Gilliland, 979-845-2080 (rural land)
Dr. Harold Hunt, 979-847-9021 (commercial)
Dr. James Gaines, 979-845-2079 (residential)
Judon Fambrough, 979-845-2007 (legal issues)
For information on the Real Estate Center, contact Senior Editor David S. Jones at 979-845-2039 (voice), 979-845-0460 (fax) or d-jones (at) tamu (dot) edu. Or contact Associate Editor Bryan Pope, 979-845-2088 (office) or b-pope (at) tamu (dot) edu.
By David S. Jones, Senior Editor, Real Estate Center at Texas A&M University