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Home Building in Texas: High demand, labor shortages, and lack of affordable lots

Challenges and opportunities for builders and developers in the state of Texas – where technology stands in North America’s biggest housing market

The Texas Opportunity

Six of the top 10 most desirable cities for homeowners are in the great state of Texas. These cities have growing home values, growing population, and shrinking unemployment and crime rates. Houston, for instance, is the 4th largest city in the United States and is a dynamic, growing city, rich in culture and diversity – and the home of our next Smart Strategies for Builders Seminar Series.

Here are some of the unique challenges affecting Texas builders and developers:

Challenges and Opportunities for Texas Builders in 2018

Demand for new homes is high while labor is hard to find – Demand is high, which means Texas home builders can expect higher margins as homeowners are willing to outbid their neighbors, but this too comes at a cost since skilled tradespeople are now a hot commodity. Add in the effects of Hurricane Harvey, which has pitched homebuilders against renovators in the competition for skilled labor.

The opportunity: be the builder that trades WANT to work with. Communicate more effectively with your trade partners, establishing a culture of trust and accountability. Pay trades immediately upon completion of work. Make it easy for trades to schedule their time – by offering real-time schedules on their mobile AND notifications in their inbox when important changes affect their timeline. Keep job sites clean – the trades have to work there all day!

The Texas market is getting crowded – The price tags on homes are increasing, the population and demand are growing, and the cost of building and acquiring land is also increasing. Builders from across the country are taking notice.

For successful land acquisition strategies, try “Top 3 Secrets to Land Acquisition for Home Builders”.

The opportunity: be the builder that customers WANT to buy from. Stand out from other builders by offering clients some customization in their homes without sacrificing your workflows with automated design studios. Out-compete your competition with homeowner care platforms that track, monitor, and increase referrals by creating happy customers who will say great things about you. When demand is high, you can be certain that homeowners are considering all their builder options. Lastly, ensure you have an industry standard accounting system dedicated to builders. Efficient budgeting and financial decision making can speed up build times allowing you to scale into different local Texas markets.

How to bring it all together – In a booming yet expensive market, customers are interested in purchasing homes but how can you stay ahead by maximizing your company earnings? Bigger builders tend to focus on the bigger picture and strategy involved in choosing the right locations for new communities, how receptive homeowners are to the product, and ways they can add on to the product for a quality home. As quality lots become more expensive for builders, the price tag will increase on homes. This could have a feedback effect and increase the costs of all other resources critical to building.

The opportunity: Focus on resource procurement using accounting software that will ensure you are on a budget and on track for your established growth. But why stop there? Choose an integrated building solution for the whole package that can offer all your other departments and building functions more data that can impact your companies financial responsiveness. For example, during adverse building errors, your warranty department should have an integrated process that alerts your accountants and trades with the same information so all departments are accountable.

LIMITED TIME: Get 40 percent off the Texas Builder Panel
Use the discount code “Houston 40”, we have gathered housing market experts, a panel of big builders, and software specialists with years of experience in the building industry. This is your opportunity to thoroughly understand the Texas market and to learn about opportunities and top business strategies to meet the changing Texas market.

 

Event Details:
Rapid Growth, Hurricane Fallout, and Labor Shortages:
Navigating Your Company for Continued Success
April 19, 2018, | Houston, TX
Hotel ZAZA in Memorial City
Get Your Tickets Now

 

 

Sources

2017 Best Places to Buy a Forever Home | GoodCall.com

What Does TechLash Mean for Needed Change in Home Construction | John McManus BuilderOnline.com

 

 

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