New Home Construction Remains Robust in Houston, Despite Supply Shortages

Home building activity remains strong here in Houston, despite labor and supply shortages.

Our local housing market is robust compared to other major metropolitan areas. A new study by Omnis Panels indicates the Greater Houston area has seen a 35% increase in home building permits since 2020, reaching more than 27,000 at the start of the summer. Mike Dishberger, CEO of Sandcastle Homes, says that's a good sign for our economy. However, he says getting a permit is a lot easier than finishing a home.

“Homebuilding goes in a certain order, and all it takes sometimes is one thing to stop the entire process,” Dishberger said. “For instance, insulation. Without insulation you can’t sheetrock your home. So, your house stops. Dead in the water. You don’t have plumbing? Your house stops.”

Supply chain issues remain a problem. Local homebuilders are dealing with a shortage of appliances, plastic, and glass.

“Sometimes, we’re getting the permits, but we’re not starting the homes because we don’t have the crews or the supplies to build them,” he explained. “You may see some areas of town where you got a lot of foundations where people are waiting for a framing crew or maybe Hardie siding before they start the house.”

Dishberger says, nevertheless, there's still high demand for new homes, particularly among those in their 30's and 40's.

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