DALLAS – New housing starts tumbled across the country in January, pushing the home-building sentiment down to its lowest in five months. But the outlook might not be as uncertain in Texas.
January Housing Starts Report
What we know:
According to the latest U.S. Census Bureau report, housing starts nationwide dipped below expectations in January.
Construction started on 1.366 million new homes in January. But that’s down by nearly 10%.
And building permits were up by just a tenth of a percentage point.
What they’re saying:
“There’s a whole potpourri of things going on right now. We have interest rates that are stubbornly high. The inflation numbers were actually pretty bad, the last ones we got. There’s a lot of uncertainty now because of the tariffs and all the other economic things happening,” said SMU economics professor Mike Davis.
The most immediate impacts are likely from tariffs on steel and aluminum imports, with reciprocal tariffs on many other products still looming.
The National Homebuilders Association said the tariffs will likely affect the numbers even more by raising home-building costs, deterring new development, and frustrating efforts to rebuild in the wake of natural disasters.
The association added that consumers will ultimately pay for these tariffs in the form of higher home prices.
Local perspective:
While housing starts in Texas haven’t gone cold, they have cooled a little bit.
The Lone Star State’s story is slightly different than the rest of the nation’s, though.
“We’re seeing things are slower than they were, but we’re still positive,” said Scott Norman, the CEO of the Texas Association of Builders.
While there are concerns about looming tariffs and about immigration because immigrant labor is a big part of the housing industry, Norman said Texas has what it takes to keep new homes going up.
“The two things that drive housing growth are population growth and job growth,” he said. “Certainly in North Texas where you are, but all over the state, we’re seeing companies relocating here. We continue to see expansion and the growing job market.”
What’s next:
Davis looks forward to seeing the numbers in the spring.
“One thing I would say is that this is one month’s worth of numbers. So, what this says to me, it sets off definitely an alarm. But it says pay attention next month and the month after that. If we see this developing as a pattern, then we should take it really seriously,” he said.
The Source: FOX 4 reporter Shaun Rabb talked to SMU economics professor Mike Davis and Texas Association of Builders CEO Scott Norman to gather information for this story. He also references statements from the National Homebuilders Association and the January construction report from the U.S. Census Bureau.
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