Recent findings show that the cost to purchase a home in Texas has risen by 40% since 2019 causing mortgage payments to increase drastically during the same period. During this same period housing shortages have increased, further driving up costs and lowering availability. With these factors and the trend towards more migration from state to state in search of more affordable housing many would be homeowners search for answers during this housing shortage.
Rising Home Prices in Texas: Build Instead of Buy
While Texas remained one of the most affordable housing states in the country for many decades due to the traditional low cost of living and availability of land more and more people are moving from other states to Texas and finding existing housing costs have increased.
One thing Texas is not short on, land. Those homeowners looking to live outside of major metropolitan areas like, Houston, Austin, Dallas, and San Antonio find that if you are willing to travel outside these areas affordability and space is available.
Affordable Land Options Outside Major Texas Cities | Build a Home in Texas
In many Texas counties you can find acreage and small lots for very affordable prices compared to the major cities which makes not only housing more affordable but also provides homeowners options for those who value space.
Due to the rising cost of existing homes, the price and availability of land, and the want for more space building in your own home in Texas is the right fit for many homeowners.
Texas Construction Loans: Financing Options for Every Homebuyer
In addition, the financing options for construction loans has grown in recent years extending from traditional conventional construction loans to VA Construction Loans for veterans, FHA Construction Loans for homebuyers who want more flexibility, and USDA Construction Loans for those looking to build in rural areas.
The Appeal of Building Your Own Home in Texas
More and more homeowners find building their own home meets their needs but also provides a chance to select what you build. In many cases homeowners are building new homes on their own lot with a builder’s warranty for less than what existing older homes cost.
Declining Material Costs: Why Building a Home Is Cheaper Now
Another reason that homeowners are finding now is the time to build your own home in Texas is due to the declining cost of building materials since 2022. According to the latest Producer Price Index report, growth in the average price level of inputs to residential construction less energy (i.e. building materials) fell from 15% in 2022 to 1.3% in 2023. One of the primary concerns facing builders during the last 4 years has been the increased cost to building materials such as lumber, concrete, and steel mill products. All categories have seen double digit price declines since 2023. Building a home today is cheaper than building a home in 2023 while the existing home prices continue to rise in most markets.
Explore Popular Texas Home Styles: Barndominiums, Modular Homes, and More
Many homeowners have also enjoyed the ability to choose what they build. Taking advantage of newer and more traditional style homes. Homeowners are attracted to the idea of designing their own plans and choosing the construction type.
Barndominiums have become increasingly popular with many Texas residents, and you will not find many available in existing neighborhoods most are built by the original owners and have many style options and now barndominiums are widely acceptable by lenders like Security America Mortgage. You can choose from several loan options to finance the building of a barndominium, including one-time close construction products. In addition, homeowners also find that traditional stick-built homes, manufactured, and modular homes are available when building on your own land.
Flexible Regulations and Permitting Make Texas Ideal for New Builds
When building on your own land flexibility is the great divider. Choosing where you want to build, what you want to build, how you build, and how much to spend is very appealing in today’s world. It provides so much more excitement and fulfillment when you see your own personal selections come to life. Many homeowners locate their own house plans online and bring them to a designer or architect for changes and updates. Plan selection is one of the most exciting parts of building your own home. You can choose colors, materials, layout, theme, you can really bring your vision to reality. Imagine choosing your own home versus having to choose an existing home with no warranty and top market price.
Finding the Right Builder and Location in Texas
Texas not only provides available space for land but also the selection of builders is vast. There are qualified builders throughout the state, builders who are experienced and not only the type of building but also the location. Many times, we find that builders know the areas well and can help guide you through the process of selecting land and how to best improve that land.
Build Your Dream Home in Texas with Security America Mortgage
Texas also provides flexible building regulations. In many counties the permitting process is short and affordable while in other counties residential building permits are not required. Another reason why now the time is to build in Texas. Many other states and counties the cost of permitting is cost prohibitive and timely. Reports show that residential building permits in other states can be as much as 5% of the cost of the home and take up to 9 months to receive.
Not only is the building permit costly but private sewage systems or septic systems can be difficult to obtain or will require connection to public sewage. Due to the soil content in many areas, ground sewage systems are an affordable option including septic design and permitting. You can often apply for and be approved for a septic system within a week.
There is no better time to build than now and no better place to build than Texas. Available, affordable land, flexible building options, plenty of available builders, flexible financing, and easy permitting in most areas make Texas one of the top states in the country to live and build. Contact Security America Mortgage today to find the best financing options for you and use our builder connections to help find the best builder for you. Don’t forget you can finance the purchase of your land with your construction loan with most loan options available today.
