Trends in the Texas Construction Industry

| November 8, 2013 | 0 Comments

Texas Construction

The Great Recession hit the construction industry hard. As people lost their jobs and dealt with overwhelming bills to pay, workers in the construction industry suddenly found building projects to be delayed or abandoned. Fortunately for Texas, it was able to avoid the housing bubble that many states faced across the US, such as California and Florida.

 

Land Values

How did Texas bounce back quickly compared to other states? They have a land use policies that help to keep the price of land low, allowing new housing to be built at an affordable price. Households that dealt with large losses to their incomes were still able to afford the property they had purchased. Texas has continued to offer smaller increases in house prices, in comparison to California and Florida. California found their housing price rates had increased 16 times the amount of Texas housing prices. When the Great Recession hit, Texas didn’t experience the same housing hit quite as severely as other states. In turn, less mortgage distress helped employers lay-off fewer workers.

Worker Positions

Texas is currently struggling to find workers to fill the craft positions. This means that the prices for homes can be difficult to keep low as construction companies seek to employ more craftsmen, such as carpenters, cement masons, and electricians, to work on homes. The number of skilled craftsmen is low not only in Texas, but across the entire US. Finding qualified craftsmen can delay home building by several weeks or months. It can also increase the total price for a completed home as companies have to pay more for the workers who are willing to do the work.

Wage Workers

Many Texans have relied on construction wages to provide an income for their families. Today, the challenges faced by the construction industry are related to the numerous, undocumented workers who are driving wages down. One in 13 workers in Texas is employed in the construction industry. While half of the workers in the Texas construction industry are undocumented immigrants, the issue of wages poses a problem for people seeking to build homes for a low price. A family can easily build a five-bedroom, 3,000 square foot home for $160,000 in Texas, but with the cheap labor concerns, there are new challenges being handled in the construction industry relative to costs. People are going home with low wages or no wages at all, due to exploitive construction firms that take advantage of undocumented workers.

Looking Forward

Current trends show that the Texan construction industry is starting to pick up again. Many companies are hiring out for new warehouses to be built. People are able to afford building homes once again, which may lead to an increase in jobs. Job growth is stimulating for the economy, and great for individuals hoping to build a new home. They will be able to have a home built quickly as long as they are choosing the right company to work with. Developers are building in areas where there is a demand for future growth. Prospective home builders should look to the areas where developers are targeting to consider if it is a good area to build, or whether it looks like the resell value could decrease.

Byline

Jonathan Valerie is a freelance writer based in San Antonio, Texas. Readers who have home improvement needs in the area of window installation should consider a trusted window company in Houston, Texas.

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Category: Structured Settlements

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