Pflugerville - Hutto Edition | July 2023

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NEW CONSTRUCTION

REDUCED MOMENTUM After years of high growth in new home construction in the area, permits issued for single-family homes have decreased signicantly as interest rates have risen.

At least 15 residential developments with new homes are under construction. Three of the larger projects are highlighted below.

Round Rock

Pugerville

Hutto

2,080

1460

1,000 1,500 2,000 2,500

Single-family subdivisions

110

1660

1,481

1,331

1,262

1,187

ROUND ROCK

901

851

791

653

851

260 545

0 500

715

533

522

474

S R

437

152

130 TOLL

2018

2019

2020

2021

2022

2023*

1660

*AS OF JUNE 16

620

137

SOURCES: CITIES OF HUTTO, PFLUGERVILLE & ROUND ROCKCOMMUNITY IMPACT

GATTIS SCHO O

45 TOLL

holding strong so far in 2023, according to data from the city, with similar pat- terns in Round Rock and Pugerville. Local experts said interest rates as well as home prices are contributing to a decline in new home builds and pur- chases. The trend is in turn prompt- ing home builders to oer incentives, such as upgraded nishes and con- tributions toward closing costs. Dennis Werner, Austin-area sales director for Coventry Homes, said the reduction in new home starts, or builds, over the past year is also con- tributing to softening sales for new- build homes. “In previous cycles, there was always abundant inventory, too much inventory, and everyone was slash- ing prices to get rid of it,” Werner said. “This is dierent this time. The number of nished new homes on the

many homebuilders are oering incen- tives to the buyer. In-house lending, concessions on some upgrades, buying down inter- est rates and contributions to closing costs are just some of the ways area homebuilders are appealing to buyers amid high interest rates and reduced demand, said Carissa Bradford, a real estate agent with Coldwell Banker. Bradford said while interest rates are higher than they were a year ago at an average of 6%-7%, they are far from being a deterrent, simply returning to what might have been considered a reasonable rate prepandemic. For example, pending sales for new homes in May dipped about 4% from where they were in 2022. “We’re not actually at high interest rates right now,” Bradford said. “That’s a misconception that a lot of people have because they were on the fence about not buying during COVID[-19] because prices were too high, but inter- est rates were so low.” Werner said as more inventory

MOPAC

PFLUGERVILLE

2 Cottonwood Farms • Hutto • Starting at $279,990 • 1,200-2,904 sq. ft. • 400+ homes Amenities:

swimming pool, playground, splash pad, proximity to retail and dining 3 Salerno • Round Rock • Starting at $333,995 • 1,360-3,475 sq. ft. • 1,100+ homes Amenities: swimming pool, park space, playground, walking paths and proximity to retail

1 Blackhawk • Pugerville • Starting at $480,000 • 1,949-4,342 sq. ft. • 3,300+ homes Amenities:

market is fairly low.” Incentivizing buyers

swimming pool, multiple playscapes, shing ponds, outdoor workout area, golf course and walking paths

To combat the slowing rates of new-construction home purchases,

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