TEXAS – According to a new report from StorageCafe, the most active cities for real estate development over the past decade are in Texas.
No. 1. Houston. Space City’s real estate market is firing on all cylinders, pushing it ahead of every other major city across the U.S. in terms of inventory expansions. Supported by consistent demand coming from the huge influx of newcomers, a diversifying economy, and a strong job market, both residential and commercial construction are thriving.
About 5.7 million sf of storage space was added to the local inventory over the past ten years, with 2018 alone adding 2.1 million sf. Houston ranks first nationally for industrial construction, with almost 66 million sf of new industrial space erected over the past decade, and second for office space construction, with 27 million sf.
No. 2. San Antonio. The Alamo City was propelled by its lively industrial, single-family, and self-storage construction sectors. Benefiting from an innovative economy revolving around healthcare, tech, and tourism, but also rooted in manufacturing and international trade, San Antonio added over 22.6 million sf of industrial space, 5.7 million sf of office space, and 9.3 million sf of retail space over the past ten years. Local residential construction added 34,000 single-family homes. More than 38,000 multifamily units were permitted from 2013 to 2022. The best year for single-family construction was 2021, when more than 6,500 permits were issued, while multifamily construction boomed last year, with nearly 9,500 units on the drawing board.
No. 3. Austin was third nationally in terms of real estate development from 2013 to 2022. The tech-oriented city, which saw a host of companies and busy professionals relocating there over the past ten years, had a particularly impressive apartment construction evolution. Almost 99,000 building permits for multifamily units were issued over the past decade, with only New York City and Los Angeles surpassing it. The best year of the decade for multifamily construction was 2022, when over 15,000 permits were registered. About 37,000 single-family homes were permitted over the past ten years.
No. 4 Fort Worth. Landing fourth in the ranking, Fort Worth narrowly outperformed neighboring Dallas in real estate development. Fort Worth’s population increased around 25 percent over the past decade, which propelled residential construction in the area. The city registered 50,000 building permits for single-family homes over the past decade, second only to Houston. During the same time, almost 37,000 new apartments were permitted in, as well as 3.2 million sf of self-storage space.
No. 5. Dallas. Big D recorded the most spectacular advances in industrial construction, with over 31 million sf of new space delivered from 2013 to 2022. The city recorded significant growth in its technology and startup sectors, with a number of innovative companies establishing headquarters or offices in the area, which, in turn, attracted young, skilled workers. This reverberated in the residential sector, and almost 69,000 new apartments were permitted in Dallas over the past decade.
