New home construction in the Tulsa region from January to August is outpacing last year's numbers, a continuation of the upward tick that started in 2012 following a six-year slide.
Home starts totaled 231 in August, which brings the number so far this year to 1,951, a 24 percent increase over the same time period last year, according to New Orders Weekly.
"What we're seeing is just steady growth in all price ranges and all geographic areas," said Jeff Smith, president of the Home Builders Association of Greater Tulsa and owner of CedarRock Homes. "The increasing demand from home buyers is driving growth in the industry and also causing inventory levels to drop."
But Smith said there are still plenty of options for those interested in building a home. The majority of new homes are still 3,000 square feet and below, but some builders in Tulsa are having success in building homes at 4,000 square feet to 5,000 square feet, he said.
Broken Arrow had the most home construction starts in August with 53, which brings its total for the year to 388 - the highest in the metro area.
Tulsa had the second-highest number of home starts in August with 36, followed by Wagoner County at 25 and Bixby with 20.
Over the past 12 years, home construction was at its lowest point in 2011 with only 1,788 homes built, a 64 percent drop from the peak year in 2005 when construction on 4,997 homes was started.
The comeback didn't start until 2012 when 2,341 homes were built.
Smith said there was a lot of inventory on the market from 2005 to 2008, but most of it sold when building declined.
"Now we actually have a smaller inventory, but the demand is high. It's actually good for the market," he said.
Currently, 30-year, fixed-rate mortgages in the Tulsa area range from 4.48 percent to 5.03 percent, according to
bankrate.com.
Numbers for the report were pulled from the entire Tulsa metro area which includes Bartlesville, Bixby, Broken Arrow, Catoosa, Collinsville, Claremore, Coweta, Glenpool, Jenks, Kiefer, Miami, Muskogee, Owasso, Okmulgee, Sand Springs, Sapulpa, Skiatook, Tulsa, Verdigris and Wagoner, along with Tulsa, Rogers and Wagoner counties.
Susan Hylton 918-581-8381
susan.hylton@tulsaworld.com
Original Print Headline: Home starts up 24 percent this year
Real Estate
U.S. homebuilders' confidence in the housing market held this month at its highest level in nearly eight years. But builders are starting to worry that sales may slow if mortgage rates continue to rise.
Average U.S. rates on fixed mortgages held steady this week, hovering near two-year highs. But rates could change quickly next week when the Federal Reserve addresses its bond purchase program.
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