Metrostudy Report - Austin, TX– November 1, 2011 - The fundamental drivers of job growth and a tight rental market continue to move the Austin new home market closer to recovery. This according to Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

In the 12 months ending in August 2011, 15,500 net jobs were gained in the Austin MSA. “This stable job growth along with an apartment market that is now over 95% occupancy should translate to more activity in the housing market, however negative national news and the continued strict mortgage financing criteria have held back any surge in demand,” said Eldon Rude, director of Metrostudy’s Austin Region.

During 3Q11, 1,714 homes were started, up 31% from 3Q10. During that same time, 1,701 homes were closed, down 5% from 3Q10. The annual rate of starts in 3Q11 was 5,919 units, down 3.7% (228 units) from 3Q10. The annual rate of closings in 3Q11 was 5,816 units, down 19% (1,333 units) from 3Q10.

New home inventory stood at 3,338 homes at the end of 3Q11. Although overall new home inventory levels have not changed measurably over the last several quarters, finished inventory in the move-up price ranges continues to tighten, with the 6 price ranges above $200,000 that Metrostudy tracks at 1.7-2.3 months of supply. “We have not recorded such tight inventory levels since the early part of the last decade,” said Rude.

“As we look to 2012, we anticipate that overall demand for new homes in the region will continue to increase, however, the issues of subdued consumer confidence and financing will continue to serve as governors to the growth we experience in starts in the next year,” said Rude.

For information contact:
 eldon rude @ 512.473.2250 x12
 email This e-mail address is being protected from spambots. You need JavaScript enabled to view it