H
ouston leads the nation in single-family home construction, with 232,810 permits approved between January 2020 and August 2023. This surge is driven by the city's rapid job and income growth, which has created a high demand for housing. Builders are responding to this demand by accelerating construction efforts, helping to alleviate the national housing shortage estimated at 4-7 million homes.

    Last year, builders completed over 1 million single-family homes nationwide, with Houston-based Legend Homes building 783 new homes in the Greater Houston area so far this year. According to Tanya Rizzo, president of Legend Homes, "We're close to equilibrium to hit demand for where it stands today." However, many buyers are still waiting for interest rates to drop or for the political climate to stabilize.

    Houston's regulatory environment has played a key role in its ability to outpace other cities in single-family home construction. Lawrence Dean, CEO of Community Builders Advisory Services, notes that "Houston is better able to satisfy housing demand than many other metros with greater regulations and a lengthier entitlement process." As a result, Houston remains a more affordable housing market compared to other major cities.

    The city's median home price reached $335,000 at the end of last month, marking a 1.1 percent increase from the previous year. Single-family home values in Houston rose by 39 percent between January 2020 and August 2023, slower than Dallas-Fort Worth (47 percent) and Phoenix (54 percent). The city's construction boom extends beyond residential projects, with over $25 billion in contracts awarded through the first seven months of the year.