Everything is big in Texas, including its housing boom.
Bidding wars, which are typically seen in markets like New York or San Francisco, have caught the Lone Star State by surprise in a “suburban land rush,” Bloomberg reports. In Dallas and Houston, home prices are rising faster than at any time during the 1980s, when there was an oil boom in Texas.
“Homebuilders, caught off guard by the ferocity of buyer demand, are exhausting construction-ready lots as they struggle to recruit workers to complete houses quickly,” Bloomberg reports.
Texas largely avoided the housing crisis that struck so many other states, namely because it has benefited from a vibrant job market and growing population. In Dallas, the median home price surged 15 percent in August from a year ago, averaging $200,200. It’s one of the largest increases since 1989, Texas A&M reports. In Houston, home prices have gained 14 percent in the past year.
“This isn’t Texas-like,” says John Burns, a real estate consultant based in Irvine, Calif. “When the Texas housing market is strong, the homebuilders usually just build more. But the Texas economy is as strong as it has ever been, and the builders can’t keep up.”