Austin-area home starts rise 12 percent in 3rd quarter

Oct 2, 2013
Austin American Statesman

Central Texas builders started construction on more than 2,600 homes in the third quarter, up 12 percent from the same quarter last year as the area’s housing market continued to roll, new figures show

In its quarterly report released today, Metrostudy said the 2,639 starts bumped the total for the 12 months that ended in September to 9,290 starts. That pace is 30 percent higher than the 12 months that ended in September 2012

Meanwhile, low supplies of new, resale and rental housing continues to strengthen pricing in the the region, said Metrostudy, a national housing information and consulting firm. The Federal Housing Finance Agency reported that houses in the Austin area rose 7.7 percent in value during the last 12 months

“Austin’s consistently strong job growth and recent population influx have absorbed much of the available inventory and have driven Austin’s new home price to the highest in the state,” said Madison Inselmann, regional director of Metrostudy’s Austin market. The median new-home price in the third quarter was nearly $247,000, an 8 percent increase from the previous year, Metrostudy said

The strength of the Austin area’s economy and pent-up demand for housing enabled the market to withstand the recent hikes in mortgage interest rates, at least in the short term

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