There’s a reason why high-rise development is, well, on the rise: Condominiums and townhouses are the fastest growing segment of the Texas housing market. Houston, Austin, Dallas and San Antonio experienced an average 10.5 percent jump in condo sales between January and May 2014, according to the Texas Condominium Mid-Year Sales Report released by the Texas Association of Realtors.
The report is based on data from the Real Estate Center at Texas A&M University. Individually, San Antonio condo sales increased 18 percent, followed by Austin at 14 percent, Houston at 6 percent and Dallas at 4 percent.
“Condos offer greater affordability and inventory than other housing types,” said Dan Hatfield, chairman of the Texas Association of Realtors.
“The thriving economic growth in Texas’ major metro areas has led to a revitalization and redevelopment of our urban centers, providing new needs and opportunities for condo development,” Dan Hatfield, chairman of the Texas Association of Realtors, said in a statement.
“Condos offer greater affordability and inventory than other housing types on the market and, as a result, are playing an increasingly important role in the Texas housing market as a whole.”
In Dallas, 2,383 condos were sold between January and May 2014, a 4 percent increase over the same period last year. Median price increased 4 percent to $160,000, and average days on the market dropped to 62, a 15 percent decrease.
In Houston, 2,678 condos were sold, with a 6 percent median price increase to $145,000. Average days on the market dropped to 55 — a 16 percent decrease from last year.
Austin saw 1,349 condos sold in the first half of 2014, up 14 percent. The median price increased to $214,480, an 11 percent gain from 2013. Average days on the market dropped 24 percent to 47.
In San Antonio, 271 condos were sold for an 18 percent increase over the first half of 2013. Median price jumped 9 percent to $105,300, and average days on the market dropped to 95, a 15 percent decrease.
“There is little available land for housing development in Texas’ major metro areas, particularly in its urban centers where housing demand is strongest,” said Jim Gaines, an economist with the Real Estate Center at Texas A&M University. “Developers are now looking upward for opportunities to build and investing in multifamily developments both in these centers and even in some suburban areas. Condo sales will likely be a strong driver in the Texas housing market for the rest of the year.”