Home prices in Texas are rising faster than in the rest of the nation, particularly in Dallas, where the median price of a new house has increased 46 percent since 2012.
The Dallas Morning News reports that one cause of the surging prices is the lack of available laborers. In the Dallas area, around 81,000 people worked in the construction trades in February, which is well below the 99,000 workers needed to fill current demand.
The Dallas market is starting to feel the impact of the shortage of available immigrant workers, many of whom are Mexican. At one point, immigrants filled half of the construction jobs in Texas. But, since the recession, Mexico’s economy has improved, luring many workers back home. Also, the U.S.'s new anti-immigration stance has pushed workers away.
During the previous housing boom, from 2002 to 2007, Texas added almost 660,000 international immigrants, according to the Census Bureau. In the past five years, as homebuilding bounced back, international immigration was 40 percent lower.
Advertisement
Related Stories
Economics
Shelter Costs Drive Inflation Higher Than Expected in January
January Consumer Price Index data show inflation increased more than anticipated as shelter costs continue to rise despite Federal Reserve policy tightening
Economics
Weighing the Effects of the Fed's and Treasury's Latest Announcements
The upshot of the Jan. 31 announcements is that while mortgage rates will stay higher for longer, they're likely to hold steady
Economics
NAHB CEO Tobin Says 'Housing Renaissance' on the Horizon
Responding to positive housing-related data such as falling mortgage rates and increased homebuyer activity, NAHB's CEO Jim Tobin is optimistic