Houston Business Journal staffer Paul Takahashi taps into the perspective of Trendmaker Homes president Will Holder on the demand and supply issues for new homes in the Houston market, especially in light of the economic fall-out of the global oil glut in the market.
Holder says in no uncertain terms that sales per community per month have taken a hit and are likely to continue to be challenged into 2016, given the convulsions of the oil slump. At the same time, laborers, who had been in critically short supply during the first quarter of last year, are more available. More importantly, they're available for hourly rates builders find to be much more palatable and predictable. Takahashi writes:
Construction costs are finally declining amid the oil slump, Holder said. Land and concrete costs are still high as new corporate campuses, refineries and roads are completed around the Bayou City. However, labor costs are starting to come down, and there are fewer instances of competing builders poaching workers from job sites, Holder said.