Texas Home Remodeling and Building Industries Boom

Weathering the Housing Market Storm

The United States Census Bureau released several detailed reports about the home remodeling and construction industry.  Texas has been lucky; through the last recession we fared much better than most other states.  While areas of New England, California, and Chicago suffered tremendous busts when the sub-prime mortgage lending bubble burst; Texas only felt the shock waves.

The following data from the U. S. Census Bureau’s construction and housing reports page  shows how resiliently and confidently Texas home builders continued to invest.  Keep in mind when you look at these numbers as well that the recession started in 2008, just one year before these statistics were extracted.

Table 968. New Privately Owned Housing Units Authorized by State: 2009 and 2010
[583 represents 583,000. Based on about 20,000 places in United States having building  permit systems in 2008 and in 2009.] permit systems in 2000 and 20,000 in 2006. FIPS means Federal Information Processing Standards] (Detail may not add to total because of rounding)
State 2009 2010 2009 2010
Total Total 1 unit Total Total 1 unit
Unit indicator (1,000)
    United States 583.0 598.0 446.6 95,410 101,008 86,723
Alabama 13.3 10.2 8.1 1,664 1,453 1,313
Alaska 0.9 0.9 0.8 195 205 184
Arizona 14.5 12.2 10.6 2,736 2,405 2,233
Arkansas 7.1 6.9 4.3 818 854 725
California 35.1 43.1 24.7 7,758 8,968 6,422
Colorado 9.4 11.8 9.1 2,071 2,664 2,374
Connecticut 3.8 3.8 2.5 715 804 629
Delaware 3.2 3.1 2.7 361 365 338
District of Columbia 1.1 0.7 0.1 131 96 21
Florida 35.3 39.5 30.9 6,789 7,843 6,957
Georgia 18.2 17.7 15.2 2,618 2,703 2,471
Hawaii 2.6 3.4 1.9 779 769 583
Idaho 4.9 4.6 4.0 805 774 720
Illinois 10.9 11.6 7.9 2,101 2,360 1,726
Indiana 12.6 13.0 9.9 1,933 1,988 1,757
Iowa 7.7 7.3 5.9 1,198 1,191 1,049
Kansas 6.7 4.5 3.7 881 746 681
Kentucky 7.4 6.8 5.4 923 989 825
Louisiana 12.5 11.5 10.5 1,842 1,808 1,732
Maine 3.1 3.0 2.7 493 480 463
Maryland 11.1 12.2 8.4 2,089 1,943 1,562
Massachusetts 7.9 8.6 5.5 1,554 1,683 1,371
Michigan 6.9 9.3 7.9 1,173 1,529 1,422
Minnesota 9.4 9.7 6.8 1,712 1,752 1,465
Mississippi 7.0 4.8 4.0 878 646 587
Missouri 10.1 8.3 6.0 1,434 1,275 1,101
Montana 1.7 2.2 1.5 254 329 266
Nebraska 5.2 5.0 4.1 725 776 711
Nevada 6.8 6.4 5.4 749 827 750
New Hampshire 2.3 2.7 2.0 421 489 424
New Jersey 12.4 13.3 7.4 2,071 2,017 1,501
New Mexico 4.6 4.5 4.0 769 777 734
New York 18.3 20.2 10.4 3,062 3,191 2,228
North Carolina 33.8 33.7 26.0 5,030 5,017 4,538
North Dakota 3.2 3.6 2.1 352 450 358
Ohio 13.3 13.5 10.6 2,194 2,299 2,119
Oklahoma 8.8 8.3 7.0 1,302 1,214 1,140
Oregon 7.0 7.3 5.7 1,356 1,473 1,286
Pennsylvania 18.3 21.3 17.4 3,075 3,465 3,076
Rhode Island 1.0 0.9 0.7 162 157 142
South Carolina 15.5 14.5 13.1 2,534 2,525 2,423
South Dakota 3.7 2.9 2.3 464 431 389
Tennessee 15.0 16.3 11.7 2,079 2,174 1,845
Texas 84.4 84.8 65.3 12,542 13,332 11,875
Utah 10.0 9.4 7.2 1,573 1,720 1,479
Vermont 1.4 1.5 1.2 214 248 212
Virginia 21.5 21.2 16.3 3,173 3,249 2,893
Washington 17.0 20.2 14.8 3,186 4,011 3,461
West Virginia 2.2 1.7 1.5 310 269 256
Wisconsin 10.8 11.8 7.9 1,753 1,858 1,547
Wyoming 2.3 2.1 1.4 407 414 358
Source: U.S. Census Bureau,  Construction Reports, “New Residential Construction”,
For more information:
http://www.census.gov/const/www/newresconstindex.html
Internet release date: 9/30/2011

Texas has the highest number of new houses built in 2009, with over 84,400,000 new home building permits issued there between 2009 and 2010.  Florida has the second highest amount of new home build authorizations in 2009 with 35,300,000 new home permits printed that year.  California squeaks into a close third with just 35,100,000 new home building permits approved in 2009.

Texas, Florida, and California are all very expansive states.  Of these three geographically gifted states California has the largest population with over 37 million residents.  That’s almost the population of Texas and Florida combined.  However, Texas issued about 2 ½ times more home building permits than California in 2009 despite having a third of the population.  This indicates that California was hit by the recession harder; more people are choosing to age in place or opt for home remodeling over buying a new home in California.

What are the Most Popular Remodeling Projects?

According to the U. S. Census Report, the most common project in the United States (by far) is bathroom remodeling with over 14.5 million homes reporting a bathroom remodel completion in 2009.  In second place is kitchen remodeling with over 84,520,000 reported renovations, and bedroom remodeling comes in a close third with over 74,000,000 homes completing a bedroom remodel in 2009.  Look at the table below to see for yourself.

Table 1003. Home Remodeling–Number of Households With Work Done By Amount Spent: 2010
[In thousands, except percent (2,535 represents 2,535,000). As of Fall 2010. For work done in the prior 12 months. Based on household survey and subject to sampling error; see source]
REMODELING PROJECT        Total households with work done \1  Households with work done by outside contractor Number of households by amount spent (dollars)
Number Percent of households Under $1,000 $1,000 to $2,999 Over $3,000
Unit indicator (1,000) (percent) Number (1,000) (1,000) (1,000)
Convert garage/attic/basement into living space 2,535 1.11 706 597 410 983
Remodel bathroom 14,511 6.36 4,231 5,885 3,167 2,973
Remodel kitchen 8,452 3.71 3,097 2,732 1,240 3,062
Remodel bedroom 7,146 3.13 1,196 4,138 1,032 451
Convert room to home office 3,105 1.36 256 1,927 277 66
Convert room to home theater 723 0.32 125 268 201 103
Remodel other rooms 5,862 2.57 1,042 2,887 893 1,079
Add bathroom 1,062 0.47 205 330 132 247
Add/extend garage 481 0.21 110 141 32 164
Add other rooms – exterior addition 1,086 0.48 307 256 164 435
Add deck/porch/patio 5,414 2.37 1,654 1,633 1,433 1,315
Roofing 8,224 3.61 5,154 1,654 1,478 3,842
Siding – vinyl/metal 2,193 0.96 1,046 373 293 907
Aluminum windows 1,589 0.70 759 350 346 433
Clad-wood/Wood windows 875 0.38 468 274 115 399
Vinyl windows 4,719 2.07 2,555 1,212 950 1,625
Ceramic tile floors 6,659 2.92 2,377 3,276 1,664 514
Hardwood floors 4,962 2.18 1,928 1,392 1,455 1,068
Laminate flooring 4,700 2.06 1,162 2,428 874 485
Vinyl flooring 2,785 1.22 864 1,809 239 114
Carpeting 7,189 3.15 4,126 2,399 2,147 1,057
Kitchen cabinets 4,400 1.93 1,782 1,081 792 1,420
Kitchen counter tops 4,911 2.15 2,553 1,327 983 1,456
Skylights 787 0.35 383 289 49 79
Exterior doors 5,672 2.49 2,186 3,092 1,009 273
Interior doors 4,544 1.99 1,388 2,419 676 234
Garage doors 2,649 1.16 1,500 1,188 796 54
Concrete or masonry work 3,883 1.70 1,922 1,788 734 665
Swimming pool – in ground 560 0.25 277 137 36 294
Wall paneling 1,327 0.58 187 672 59 24
Ceramic wall tile 2,439 1.07 901 1,458 317 84
FOOTNOTES
\1 Includes no response and amount unknown.
Source: GfK Mediamark Research & Intelligence. LLC, New York, NY, Top-Line Reports, (copyright)
For more information:
http://www.gfkmri.com/
Internet release date: 9/30/2011

What do These Numbers Mean?

Of the 145 million homes that completed bathroom remodeling projects in 2009, nearly 59 million of these households spent less than a thousand dollars.  Many of these must have been DIY jobs, because the cost of even a half bath remodel costs more than a thousand dollars in materials alone.  This report also indicates that people hire outside remodeling companies most to perform the following jobs in descending order.

  • Roofing
  • Bathroom Remodeling
  • Carpet Installation
  • Kitchen Remodeling
  • Vinyl Window Replacement
  • Ceramic Tile Floor Installation

The only surprising revelation from this data is that homeowners hire outside remodeling companies to remodel their kitchens less frequently than they do to install carpet.  However, the high cost of remodeling a kitchen compared to installing carpet could account for this difference.  The validity of the reports is also questionable, because according to the data only about half of homeowners who have in-ground pools put in hire an outside company to build them.  DIY videos are very helpful, but it is unlikely that they can walk you through the grueling process of designing a pool, excavating the pool site, and building the pool.

We hope you find this information useful. Please leave a comment or share any related remodeling statistics or links that we may have missed on these topics.  We love a good remodeling discussion.

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