Houston homebuilders enter challenging times, but are still optimistic

  • The slowdown in home starts that began in 2015 will continue into this year.
  • New lot development is predicted to decline in 2017 and 2018.
  • More homebuilders could begin to offer discount for their more luxury product.

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Houston should remain the nation’s leading homebuilding metro in 2016 despite a slowdown in single-family home starts. Scott Davis, director of Metrostudy’s Houston region, recently dubbed 2016 as the “most challenging environment” for Houston homebuilders in the last several years, pointing to affordability as the primary issue.