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By : Jennifer Porter

Why Do We Keep Building Houses in Texas?

Do you want to move or relocate to Texas? If so, have you thought about whether you should buy or build a home?

With so many neighborhoods and homes in Texas, you may be wondering: Why do we keep building houses? Is there really a demand for it? Is that something I should consider?

The answer to that is yes, there is a demand, and here’s why:


1. There Are Less Homes on the Market

Over the last couple of years, individuals and families have been relocating from place to place - which we’ll talk more about in a later point. This has increased the demand for houses.

Unfortunately, there have not been enough houses on the market to meet that demand, which is why you’ve probably heard lots of stories about Texas houses - and others throughout the U.S. - selling for way over asking price.

Home builders also haven’t been able to keep up with the demand until recently, as more and more people look to buy a home in Texas.


2. Homes Are Selling for Way More Than They’re Worth

Due to the increased demand for homes in Texas, many homes are selling for way more than they’re worth.

In the last few years, especially, you could see a home you like and immediately enter a bidding war with 10 other buyers (sometimes more). These bidding wars have led to homes selling for way more than asking price. That means when you move in, you are probably moving into a home that you bought for way more than it’s worth.

Fortunately, the market is starting to cool down so you may be able to find a home that is closer to the actual value of the house.


3. More People Are Moving to Texas

Going back to the demand for houses. Over the course of the pandemic, Texas saw a huge increase in the number of people moving here. We believe there are a couple of reasons for this:

1. The shift to remote work in the last couple of years has allowed individuals and families to choose where they want to live. If you don’t have to live near an office, you can choose wherever you want to be!

2. Texas is an affordable place to live and a place ripe with good job opportunities. It has a great impact on people coming to Texas from California where home prices are double if not triple that of a Texas home.

4. Flipping Houses Is Not as Easy as It Looks

If you’re a fan of Fixer Upper, or any other Fix & Flip shows, you may think flipping a house is easy and the way to go, but it’s not as easy as it looks. In fact, flipping houses could end up costing you more money and more time than building a new home, customized to your specifications.

Now, we’re not saying flipping houses isn’t a good thing. It is a great way to bring older homes up-to-date and into the modern day, but there are a lot of people who assume this will be easier and more cost-effective than it actually is.

5. Existing Homes May Not Be Up to Code

Another reason why new homes need to be built is that some of the homes that have existed for a while are horribly out of date and need to be up to code.

Even if you purchase an older home, hoping to do a few renovations and add-ons, those renovations and add-ons may require a city permit. Not a big deal, right? Well, sometimes when you go to apply for a city permit, they take a look at the house and inform you that you need to bring the rest of the house up to code, as well. That small renovation just cost you a lot of money. Yikes!

That’s not to say that will be the case every time. Older homes are often grandfathered into new policies and regulations, which means they aren’t required to be to the same standards as newer homes.

However, that’s not always a good thing, as you’ll see in our next point.

6. New Homes Are Equipped for Modern-Day Living

We’re not just talking about style, as is usually assumed. New homes are built following new, updated codes that are designed to keep residents safe.

There’s a reason why building regulations are updated. We have learned from how we used to build, which is why older homes that are not up to code and grandfathered into new policies could be a serious risk for homeowners.

Here’s an example from Mister Sparky:

Old houses may conduct electricity on knob and tube wiring. This practice became obsolete in the 1940s and can put your home at risk. It is not equipped to handle high power loads that are typical in modern homes.

Another example is the type of plumbing used. Old practices called for copper plumbing to be used throughout the home. While this used to be fine, we’ve seen that when a Texas ice storm hits, these copper pipes are more prone to snap under cold temperatures, causing your pipes to burst and flood your home. Today, PEX is preferred because it won’t snap in the cold weather.

7. New Homes Save Buyers Money

Especially with inflation, home buyers are looking for ways to save money. New homes are usually much more energy efficient than buying a home on the market. This energy-efficiency offers you energy savings over time that you won’t get from an older home.

Not only that, but because it’s a newer home, you know that everything works when you move in. You won’t have any costly repairs for at least a few years after living in your new home.


We hope this article offered a bigger picture of the housing market in Texas and why builders are continuing to build new homes. If you’re interested in building a home in Texas, we’d love to talk to you about what that would look like for you and your family.


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