New home construction in Texas is living up to the state’s reputation for “bigness”. According to the Dallas Morning News, one of every 10 new homes constructed in the U.S. is going up in Dallas, Houston, or Austin. 

Homebuilding in these three Texas metros outpaces 45 U.S. markets combined.

Based on a Trulia analysis of building permits, Dallas, Houston, and Austin are poised to collectively build 130,000 new homes in 2017, which almost guarantees each city a spot in the top five for permit activity, with New York and Phoenix expected to join them. 

Homebuilders in Dallas and Houston are positioned to add 50,000 new homes to each market with Austin builders adding 30,000, which is more than twice the capital city’s average from 1980 to 2016.

While home-building is currently bigger in Texas, the real story centers on why. In a nutshell, the “why” revolves around successfully implementing two combined factors: the historic pace of construction and maintaining a new home inventory that keeps up with local market demand.

In contrast, the Trulia report shows that San Francisco and San Jose are both constructing new homes that surpass their historic rates, yet they’re on track to build fewer new homes than Raleigh, N.C. San Francisco builders obtained one new permit for every six new jobs. San Jose, Sacramento, San Diego, and Los Angeles likewise fell short of supporting new jobs in their market with an adequate number of new homes. Between a low baseline for new construction and high job growth, California’s major markets are in an inventory desert for new homes.

Despite shrinking inventories of previously owned homes that have become the new normal in real estate across the nation, Texas has no shortage of new home communities continually going up in metro areas around Dallas, Houston, and Austin.