2025 News Archive

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According to Zonda, in 2Q25, the New Home Lot Supply Index (LSI) in Houston was up 21% from 2Q24, reaching 71.8, signifying that the Houston market remained significantly undersupplied. While the LSI was up year-over-year, builders slowed production due to economic uncertainty and oversupply of homes for resale. The overall housing inventory reached 59,492 active listings in July, the highest on record for Houston and a 27.2% increase from the previous year. The economic uncertainty and the slowdown in builder activity was felt across Texas in 2Q25 as softer demand and rising resale inventory reduced the pace of lot-to-start conversions throughout the State. One local silver lining is that Houston and Dallas accounted for nearly 80% of Texasa€™ new residential permits in May. Local or not, new residential permits being filed proved that even in the face of all the uncertainty, well-capitalized buyers and long-term investors continued to target strategic acquisitions.