Austin Housing Starts Slow Down

October 17, 2008

Austin new home construction starts are down but it's GOOD news for buyers!

Austin Housing Starts Down

A recent study released by Residential Strategies and published in the Statesman reveals some predictable numbers about housing starts (how many new homes are starting to be built). It doesn’t take a psychic to assume that housing starts are down.

With the inventory of resale homes rising in Austin, new home builders are being forced to compete with home sellers. Other factors include credit tightening for consumers, some lenders requiring more money down as well as the perception of consumers that lending is impossible (which is untrue but reinforced by tv media), all leading to a small decrease in people buying houses nationally.

Also important to note is that the credit tightening isn’t just on consumers but also on commercial entities as well meaning that builders are finding lending to be less free flowing in current times as well.

To recap, here are three factors that led to decreased housing starts:

  • Builders must compete with higher number of resale homes on the market.
  • Credit is tightening for consumers.
  • Credit is tightening for commercial entities.