Connect with us

Austin, TX

Drop in Texas building permits indicates slowdown, shift

Published

on

Drop in Texas building permits indicates slowdown, shift


At first glance, Austin seems to be in the midst of a building boom, but the boom apparently has lost some of its pop, according to a report by real estate tracking company Point 2 Homes.

Building permits in the Austin metro totaled just over 38,000 in 2023. While that’s a big number, permits are actually down 10 percent. Analyst Doug Ressler spoke to FOX 7 Austin about what’s happening.

Advertisement

“So basically, what we’re seeing is a slowdown, if you will. Couple things. First, slowdown in migration patterns. And the interest rate. The higher mortgage rates are really inhibiting, you know, the building and buying of homes,” said Ressler.

Compared to other metro areas across the nation, most in Texas are doing a better job weathering the current economic storm. Houston and Dallas led the nation in the number of permits in 2023, while Austin came in 5th, edging out the Atlanta metro. Ressler noted the tech industry and business-friendly state policies for providing a buffer. 

MORE REAL ESTATE NEWS

The Point 2 Homes report also indicated San Antonio had the biggest permit drop in Texas, by more than 30%. On the upside, several small metro areas saw increases, with the big winners being Sherman, Waco, Midland, and Texarkana.

“I don’t think there’s a bubble. I think what you’ll see is a stabilization, if you will, between supply and demand,” said Ressler.

Advertisement

That begs the question: should a buyer beware or buyer be choosy?

“I think it’s Buyer Be-Wait for the Fed to come out and start dropping the interest rates,” said Ressler.

Advertisement

The mortgage loan rate spike is providing home contractors like Jose Marcano with extra work.

“I think the interest rates are too high, and they want to just pretty much stay in their house, remodeled, and not sell it to go ahead and buy a new one because it will be more expensive for them,” said Marcano.

Inflation and supply chain problems can also make remodeling expensive.

Advertisement

“The prices on materials are too high right now. Even the price of the service to give the service call to the customer are outrageous right now,” said Marcano.

MORE AUSTIN NEWS

The Point 2 Homes report also points to a shift in what’s being built. 

In 2023, contractors broke ground on fewer single homes compared to the previous year, but there was a 22% increase in multifamily units. This indicates builders are betting on the rental market, even if interest rates drop by early 2025. And when the market improves, the type of client is also expected to change.

Advertisement

“So, what there is, is this market niche, this growing market in is called build rents, single family rentals. And they’re typically built, in the, what we call the X-urbs, border areas around urban cores and suburbs. And they look like a house, and they rent, and people love them. And so, what we see is that’s a growing market that will absorb what you’re talking about in terms of a lot of the demand that’s pent-up right now, that will be either moving from a interim rental to a buy position over the course of the next ten years,” said Ressler.

State and local leaders should use this downtime to invest in more infrastructure projects, suggested Ressler, and do things like what’s being done around the new Samsung plant in Taylor.



Source link

Advertisement

Austin, TX

Two people dead, no one arrested after homicide in South Austin

Published

on

Two people dead, no one arrested after homicide in South Austin


Two people were killed after a homicide took place in South Austin Saturday morning.

The Austin Police Department stated Saturday afternoon that at around 11:30 a.m., they responded to a check welfare call at the Cannon Ridge Homes at 6715 Windrift Way.

After being let into the residence by a family member, officers discovered a man and a woman, both in their 40s, dead at the scene.

ALSO: One dead in crash involving 18-wheeler on I-35 SB frontage road

Advertisement

No one is in custody at this time.

The investigation is ongoing and is still in its early stages. Investigators are still working to determine the circumstances surrounding the incident.

Comment with Bubbles

BE THE FIRST TO COMMENT

Police believe this to be an isolated incident with no ongoing threat to the public. This is Austin’s 8th homicide of 2026.

Advertisement



Source link

Continue Reading

Austin, TX

Weather forecast changes Saturday schedule for Texas softball at Bevo Classic

Published

on

Weather forecast changes Saturday schedule for Texas softball at Bevo Classic


Because of the threat of inclement weather, Texas softball will only play one game Saturday at the Bevo Classic.

The No. 2 Longhorns (7-1) are now scheduled to face Ohio State at 5 p.m. at McCombs Field, officials announced on the Texas social media platforms. The teams had been scheduled to play Ohio State at 2:30 p.m. and Syracuse at 7:30 p.m.

Texas beat Ohio State Friday 14-6 behind two home runs from record-setting catcher Reese Atwood, who became the Longhorns’ all-time leader in home runs in a 11-0 win Thursday over Abilene Christian. The team followed that victory against the Buckeyes with a 14-0 rout over Syracuse in the second game of Friday’s double-header.

The Longhorns, who have won four consecutive games by the eight-run, five-inning mercy rule, will complete the Bevo Classic at noon Sunday against Northern Illinois.

Advertisement



Source link

Continue Reading

Austin, TX

Austin Firefighters Union Continues Workers Comp Fight Against City

Published

on

Austin Firefighters Union Continues Workers Comp Fight Against City


The Austin Firefighters Association continued its public relations battle against the city over a denied workers compensation claim on Friday.

Earlier this week, the union sent out a blistering press release condemning the city for denying the workers compensation claim of Lieutenant Suzanne LaFollette, who is fighting stage-four ovarian cancer that she and the union believe is related to her work as a firefighter.

The union sent out a press release that accused an attorney working for the city of making it clear “he had no interest in the science of [LaFollette]’s cancer claim and the matter was set for an April contested case hearing before an administrative law judge.”

The statement states that LaFollette and the union are “disappointed but not surprised” and thanked Austin City Council Member Paige Ellis for adding her support.

Advertisement

The statement quotes Ellis, who said, “All Austin firefighters and their families deserve nothing less than the city’s full commitment to preserving their health and stability in a time of great need. If the federal government can act on this so can we.”

AFA President David Girouard said, “Austin firefighters are grateful to the citizens and members of the City Council who have reached out to support Suzanne as she fights for her life, and fights the city’s third-party workers compensation attorney.”

He continued, “We find the facts and the science indisputable. I’m confident that with the council’s support and when all the evidence is considered that Lt. LaFollete’s nearly two decades of service to Austin will be ruled the occupational cause of her cancer diagnosis.”

The press release also quoted an attorney for LaFollette who said the case “has met and exceeded the legal standard” required for her cancer to be recognized as a result of her work as an Austin firefighter.



Source link

Advertisement
Continue Reading

Trending