The Houston area housing supply is critically low as prices soar and home builders struggle to keep up the pace. The building of new homes is continuing at its torrid pace in a desperate attempt to keep the market afloat. Though the housing market in Houston is strong and suitable for existing homeowners, many are having trouble finding and purchasing a home in the red-hot, undersupplied market. 

The Greater Houston Builders Association released a report via press release earlier this month, saying, “Houston continues to see remarkably strong new home starts growth in the face of supply chain and lot availability challenges.”

The shortage in supply of homes in the area is due to a number of factors, including the population increase in the area and the influx of professionals ready to go back to work in the city following the coronavirus pandemic. 

Home builders have started around 43,000 homes in the last 12 months alone. This represents a 32.6% increase in volume over last year. Home builders are struggling to obtain permits to start building the homes, which slows the process. Another contributing factor is trouble obtaining workers or supplies due to growing supply chain and labor shortages. 

The housing market in the area remains afloat, albeit extremely expensive. Various organizations and localities in the area are trying to find ways to bring supply up and prices down.