Industry News: Single-Family Output Up, Incentives Needed for Housing Production, and 300k+ Homes Needed in Texas
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Episode Overview
In this week’s industry news episode, Ryan Glick and Charles Covey explore the latest housing market data. They begin with a discussion on single-family construction, which has been growing despite high interest rates, while multifamily housing permits are steadily declining.
Charles sheds light on the increasing dominance of national and regional builders, which have better access to capital, leaving smaller local builders struggling to compete. He explains how this shift in market share affects local economies, as larger national builders continue to take over. They also discuss the challenges small builders face, such as rising costs for permits and supplies, which makes it difficult for them to develop lots at the same pace as their larger competitors.
Next, the conversation shifts to the broader policy issues impacting the housing market. Ryan and Charles react to a Fox Business interview with Jim Tobin from the National Association of Homebuilders, where he highlights the critical need for production-side incentives rather than demand-side solutions like down payment assistance. They examine how government regulations, including costly new energy codes, are driving up the price of housing, while tariffs on Canadian lumber are also playing a role.
Wrapping up the episode, Ryan and Charles turn their attention to the housing crisis in Texas, where the state’s rapid population growth has outpaced new home construction. They discuss how Dallas-Fort Worth, one of the hardest-hit regions, has seen home prices skyrocket by almost 50% since 2020. The hosts weigh in on what’s being done at the state and national levels to address this issue and predict how the housing market might evolve in the coming years.