Houston booms as No. 2 U.S. metro for new home construction

Construction Boom

Dallas-Fort Worth ranks first, with Houston second. Courtesy photo

Driven by population growth, more residential rooftops are popping up across Houston and the rest of Texas than anywhere else in America.

Using data from the U.S. Census Bureau and Zillow, Construction Coverage found 65,747 new residential units were authorized in greater Houston in 2024. That figure landed Houston in second place among major metro areas for the total number of housing permits, including those for single-family homes, apartments, and condos.

Just ahead of Houston was the Dallas-Fort Worth Metroplex, which took first place with 71,788 residential permits approved in 2024. In third place was the country’s largest metro, New York City (57,929 permits).Elsewhere in Texas, the Austin metro ranked sixth (32,294 permits), and the San Antonio metro ranked 20th (14,857 permits).

Construction Coverage also sorted major metro areas based on the number of new housing units authorized per 1,000 existing homes in 2024. Raleigh, North Carolina, held the No. 1 spot (28.8 permits per 1,000 existing homes), followed by Austin at No. 2 (28.6), DFW at No. 3 (22.2), Houston at No. 4 (21.6), and San Antonio at No. 13 (13.6).

A Newsweek analysis of Census Bureau data shows building permits for 225,756 new residential units were approved in 2024 in Texas — a trend fueled largely by activity in DFW, Houston, Austin, and San Antonio. That put Texas atop the list of states building the most residential units for the year.

Through the first eight months of last year, 145,901 permits for new residential units were approved in Texas, according to Census Bureau data. That’s nearly 80,000 permits shy of the 2024 total.

Among the states, Construction Coverage ranks Texas sixth for the number of residential building permits approved in 2024 per 1,000 existing homes (17.9).

Extra housing is being built in Texas to meet demand spurred by population growth. From April 2020 to July 2024, the state’s population increased 7.3 percent, the Census Bureau says.

While builders are busy constructing new housing in Texas, they’re not necessarily profiting a lot from homebuilding activity.

“Market conditions remain challenging, with two-thirds of builders reporting they are offering incentives to move buyers off the fence,” North Carolina homebuilder Buddy Hughes, chairman of the National Association of Home Builders, said in a December news release. “Meanwhile, builders are contending with rising material and labor prices, as tariffs are having serious repercussions on construction costs.”

Only Dallas surpasses Houston for retail construction right now. Getty Images

Houston booms as No. 2 U.S. market for retail construction in 2025

Construction Zone

Get ready for a gigantic cartload of new shopping opportunities in Houston. A new report indicates the equivalent of 21 Walmart supercenters is under construction in the region.

The report, published by commercial real estate services provider Lee & Associates, says Houston has nearly 3.9 million square feet of retail space under construction, making it the second most active market for new retail space in the U.S.

To put that in perspective, given the average Walmart supercenter measures 182,000 square feet, the 3.9 million-square-foot total would work out to 21 new supercenters being built in the region.

Dallas-Fort Worth is by far the most active U.S. market for new retail space; DFW leads more than 60 U.S. retail markets with nearly 7.15 million square feet of space under construction. The amount of retail space going up in DFW represents 15 percent of all retail space under construction in the more than 60 U.S. markets tracked by Lee & Associates.

Houston and Austin aren’t too far behind Dallas-Fort Worth, though.

Third-ranked Austin area has more than 3.4 million square feet of retail space being built.

What’s behind the surge in retail construction across Texas? Population growth.

Data recently released by the U.S. Census Bureau shows Houston was the second-fastest-growing metro from 2023 to 2024. DFW was the country’s third-fastest-growing metro from 2023 to 2024, based on the number of new residents, and Austin landed at No. 13.

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This article originally appeared on CultureMap.com.

First phase of the RAD Center opened in spring 2024. Courtesy photo

$44 million mass timber project at UH slashed energy use in first year

Building Up

The University of Houston has completed assessments on year one of the first mass timber project on campus, and the results show it has had a major impact.

Known as the Retail, Auxiliary, and Dining Center, or RAD Center, the $44 million building showed an 84 percent reduction in predicted energy use intensity, a measure of how much energy a building uses relative to its size, compared to similar buildings. Its Global Warming Potential rating, a ratio determined by the Intergovernmental Panel on Climate Change, shows a 39 percent reduction compared to the benchmark for other buildings of its type.

In comparison to similar structures, the RAD Center saved the equivalent of taking 472 gasoline-powered cars driven for one year off the road, according to architecture firm Perkins & Will.

The RAD Center was created in alignment with the AIA 2030 Commitment to carbon-neutral buildings, designed by Perkins & Will and constructed by Houston-based general contractor Turner Construction.

Perkins & Will’s work reduced the building's carbon footprint by incorporating lighter mass timber structural systems, which allowed the RAD Center to reuse the foundation, columns and beams of the building it replaced. Reused elements account for 45 percent of the RAD Center’s total mass, according to Perkins & Will.

Mass timber is considered a sustainable alternative to steel and concrete construction. The RAD Center, a 41,000-square-foot development, replaced the once popular Satellite, which was a food, retail and hangout center for students on UH’s campus near the Science & Research Building 2 and the Jack J. Valenti School of Communication.

The RAD Center uses more than 1 million pounds of timber, which can store over 650 metric tons of CO2. Aesthetically, the building complements the surrounding campus woodlands and offers students a view both inside and out.

“Spaces are designed to create a sense of serenity and calm in an ecologically-minded environment,” Diego Rozo, a senior project manager and associate principal at Perkins & Will, said in a news release. “They were conceptually inspired by the notion of ‘unleashing the senses’ – the design celebrating different sights, sounds, smells and tastes alongside the tactile nature of the timber.”

In addition to its mass timber design, the building was also part of an Energy Use Intensity (EUI) reduction effort. It features high-performance insulation and barriers, natural light to illuminate a building's interior, efficient indoor lighting fixtures, and optimized equipment, including HVAC systems.

The RAD Center officially opened Phase I in spring 2024. The third and final phase of construction is scheduled for this summer, with a planned opening set for the fall.

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This article originally appeared on EnergyCapitalHTX.com.

Eli Lilly is looking to build an active pharmaceutical ingredient manufacturing facility at Generation Park. Rendering courtesy of McCord

Pharmaceutical giant looks to bring $5.9 billion facility to Houston

in the works

Pharmaceutical company Eli Lilly and Company is looking to build a $5.9 billion active pharmaceutical ingredient (API) manufacturing facility in Houston, according to a recent filing with the state of Texas.

The proposal states that the project plans to employ 604 full-time direct employees at the site upon ramp-up completion. These would include operations technicians, production specialists, maintenance support, quality control/assurance, engineering, administration, and management. Construction is projected to begin in 2026, with a completion target of 2030 and commercial operations beginning in 2031.

If completed, Lilly would purchase 236 acres at Houston’s Generation Park from McCord Development, the commercial development’s owner. The purchase would include multiple buildings, outdoor facilities, infrastructure buildout, and equipment installation.

This proposed Texas plant would be part of Lilly’s $27 billion effort to expand its U.S. production capacity, which was announced in February and includes construction on four new facilities in America. Lilly has previously referred to the plants as “mega sites.”

"This represents the largest pharmaceutical expansion investment in U.S. history," Lilly CEO David Ricks said during the February news conference.

The company has applied for school tax abatements under the new Texas Jobs, Energy, Technology, and Innovation program, according to reports from the Houston Business Journal. This incentive program allows school districts to limit the taxable value of a property for a portion of school taxes, which could save companies millions of dollars on a large portion of property tax bills. It also gives a 10-year tax cut for new manufacturing and development facilities, as long as there is localized job creation.

Houston Intercontinental Airport's Terminal D expansion and renovation project is nearing completion. Photo courtesy of Houston Airports

Houston Intercontinental Airport's innovative upgrades ready for takeoff

coming soon

After almost five years of construction, passengers heading out of Bush Intercontinental Airport on October 22 will be the very first to experience the expanded, upgraded, and stylish Terminal D-West Pier, an expansion of the existing Terminal D.

The new terminal is part of a broader initiative, the IAH Terminal Redevelopment Program (ITRP), a $1.458 billion project aimed at modernizing the airport's international travel capabilities. ITRP is the single largest capital improvement project developed by Houston Airports and include the refresh of the existing Terminal D, completed in 2023; the expansion of Terminal D with a new D-West Pier, which will be completed this fall 2024; and a new International Central Processor, slated for winter of 2024 and summer of 2025. More than 3,000 people spent more than one million hours on the construction project.

Terminal D-West Pier features six new gates — D1 through D6 — that can simultaneously accommodate wide-body aircraft or converted to accommodate 10 narrow-body airplanes. The expanded terminal with its new capabilities supports increasing demand from passengers and airlines and should enhance the overall travel experience.

In addition to adding 160,000-square-feet, the new wing also boasts eight new, Houston-inspired works by local artists. Those kind of details are why the Houston airport system won Best Airport Art & Entertainment Program in the prestigious Skytrax awards.

The airport's 250 newly-hired employees will work among 16 new retail and dining concessions concepts in the Terminal D-West Pier. Passengers can dine at Houston Supply Co., which opened last month. Local restaurants The Kitchen and The Annie, along with popular national brands Popeyes, Einstein Bros. Bagels, Jamba Juice, Be Relax, Jetero Market, Semi-Sweet Confectionary, and a Lego Store will open for business on October 22.

The new wing also boasts eight new, Houston-inspired works by local artists. Photo courtesy of Houston Airports

"We are focused on improving the overall passenger experience at the airport — from parking and traffic to providing modern terminals with the right amenities. This project is a major investment in our city's future," Houston Mayor John Whitmire said in a statement. "The newly expanded international terminal enhances Houston's reputation as a world-class city and provides a boost to our economy, supporting jobs and attracting more visitors from around the globe."

The new terminal offers a host of other amenities designed to make passengers' experiences more comfortable. They include a mother's room, a sensory room, a child's play area, and expanded men's, women's, and family restrooms. The restrooms utilize smart technology sensors that trigger soap and water. Door locks alert to whether a restroom stall is vacant or occupied and soft LED lighting accentuates floor-to-ceiling photography spotlighting Houston's natural beauty.

The new wing has 16 new retail and dining concessions concepts. Photo courtesy of Houston Airports

An International Arrivals corridor provides views of the airfield, the concourse, and large-scale photography inspired by Houston.

More than 500 modern and comfortable seats, including chairs, cushioned benches, and cozy loungers, featuring cup holders and charging capabilities, are present inside the terminal.

"We are excited to share this milestone with the residents of Houston," said Jim Szczesniak, director of aviation for Houston Airports. "The opening of the Terminal D-West Pier is a testament to the hard work and dedication of our team and our partners. This world-class facility will provide a seamless and efficient travel experience for millions of passengers each year. The new pier will provide the necessary capacity so that Houston can continue to attract more nonstop flights to cities around the globe."

New features include a mother's room, a sensory room, a child's play area, and expanded men's, women's, and family restrooms. Photo courtesy of Houston Airports

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This article originally ran on CultureMap.

Proactively engaging in advocating for opportunities within the industry across all job levels is essential to guaranteeing a consistent influx of skilled workers, meeting the growing construction demands of both our state and nation. Photo via Getty Images

Expert: Addressing skilled labor needs in Houston — including the role technology plays

guest column

The construction industry in the U.S. is experiencing a substantial demand for skilled workers. There are over 438,000 job openings, and this demand is projected to increase, aiming to attract over half a million workers to meet the upcoming labor needs.

The urgency is heightened as a significant percentage — more than 40 percent — of the existing workforce is expected to retire within the next eight years.

To top it off, Texas is the fastest growing state with more than nine million new residents between 2000 and 2022. With a growing population, the requirement for robust infrastructure, encompassing various sectors like transportation, health care, education, and residential development, continues to escalate. Encouraging careers in construction among the younger generation becomes vital for everyone, no matter their industry, to meet these demands and bridge the deepening skills gap.

Viable Career Path: Attracting the next wave of construction talent involves dispelling misconceptions about the industry. Many young individuals might not realize the breadth of opportunities available in construction beyond traditional manual labor. I personally gained interest and experience in the industry at a young age before navigating through a few IT careers, and then landed back in construction and worked my way up, which exemplifies the diverse career paths within the industry.

Education and training play a pivotal role in molding the future workforce. Highlighting that formal education isn't the sole path to success, apprenticeships and on-the-job training programs emerge as excellent alternatives, providing hands-on learning experiences while earning a wage. Collaborating with educational institutions and organizations at an early stage can introduce students to the industry's diverse career avenues.

As with every industry, diversity encourages innovation. Business leaders who intentionally recruit from underrepresented groups, including women and minorities, within the industry will reap countless benefits.

Innovative Technologies: Showcasing the innovative and technological aspects of the industry, such as precision tools, drone technology, AI, and virtual reality, underscores the creative and forward-thinking nature of construction careers. The construction industry continues to evolve and become technologically advanced. The need for cutting-edge individuals who possess construction skills with an understanding of technical innovations will transform the industry.

Stability: Highlighting the industry’s stability, competitive compensation, and the promising opportunities for career growth can further attract potential candidates. Advocating for stringent safety measures and emphasizing the importance of sustainable building practices introduces an added layer of social responsibility, capturing the attention of those committed to ensuring a secure work environment.

Ultimately, the collective efforts of the current workforce and today’s business leaders are pivotal in addressing the imminent skills gap that stands to affect us all. Proactively engaging in advocating for opportunities within the industry across all job levels is essential to guaranteeing a consistent influx of skilled workers, meeting the growing construction demands of both our state and nation.

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Randy Pitre serves as the vice president of operations for Skanska USA Building’s North Texas and Houston building operations.

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Meta to bring $115 million AI data center training initiative to Houston

ai workforce

Meta and Associated Builders and Contractors have entered into a partnership to invest $115 million in training programs for the construction of AI data centers, with a portion of the project launching in Houston.

The companies announced June 8 that they would open America’s Workforce Academies at ABC chapter training centers in Houston; Indianapolis; Baton Rouge, Louisiana; and Columbus, Ohio.

The academies will offer career readiness and safety training, plus five weeks of hands-on education. Participants who complete the program will be granted a job offer from contractors working on Meta projects.

“The AI revolution is bringing change but also historic opportunities,” Dina Powell McCormick, Meta president and vice-chairman, said in a news release. “Skilled workers electrified rural America one pole at a time. They manned the factories that built the arsenal that won World War II. Now a new generation will pour the foundations and lay the fiber that secures American strength in this new age.”

Overall, the Meta and ABC aim for the academies to build a more sustainable pipeline of skilled construction workers and ensure safety and job readiness for the surging number of data center projects underway.

“This new program is an innovative talent solution that is a critical part of addressing the construction industry’s ongoing workforce shortage and creates an accelerated, new-entrant strategy for job seekers ... The sustained demand for data center construction technicians means the industry needs an all-of-the-above approach to address this shortage and grow the construction talent pool,” Michael Bellaman, ABC president and CEO, added in the release.

In Texas, Meta, the parent company of Facebook and Instagram, has launched or broken ground on data centers in El Paso, Fort Worth and Temple. The company announced in March that it planned to grow its El Paso Data center by 1 gigawatt, representing more than a $10 billion investment.

Apart from Meta, Texas has attracted data center development to power other giants like Google and Amazon in recent years. In turn, Texas has been predicted to become the biggest data center market. Commercial real estate services provider JLL reported this spring that the state could topple Northern Virginia as the world’s largest data-center market by 2030. Similarly, CBRE predicted that Houston's data center capacity could double by 2028. Read more here.

New Houston biotech co. lands $30M for pulmonary fibrosis drug

drug money

Most of us can claim a scar or two on our bodies. But when scarring develops inside the body, it’s known as a fibrotic disorder. A freshly launched Houston company, Oorja Bio Inc., is working on a treatment that can help to repair cells and reduce the damage wrought by the growth of fibrotic tissue in patients.

Late last month, Oorja Bio hit the scene with a pair of big announcements. Not only has the company raised a $30 million Series A thanks to founding investor California-based Westlake BioPartners, but it has also already paved the way for a Phase 2 study to take place this year.

Oorja Bio received Investigational New Drug (IND) clearance from the U.S. Food and Drug Administration (FDA), allowing the company to test its treatment in patients with idiopathic pulmonary fibrosis (IPF), a scarring of the lung tissue. IPF affects more than 150,000 adults in the United States and can result in a range of symptoms from shortness of breath to organ failure and death as it progresses.

Oorja Bio’s lead drug candidate, ORJ-001, was shown in a Phase 1 in-human trial to demonstrate “therapeutically relevant exposure and favorable tolerability” in 64 healthy adult volunteers in whom it was administered daily or weekly, according to a news release. Pre-clinical studies of ORJ-001 showed durable target tissue engagement and biomarker activity in bleomycin-induced lung fibrosis.

Administered subcutaneously, ORJ-001 is intended to improve and even restore function in cells that can reduce the signaling that causes IPF. It stops advancement of IPF and also allows for tissue repair. Currently available treatments for the disease can slow the development of IPF down, but do not address the declining lung function that’s inherent in its progression.

“The clinical and preclinical results from our studies to date give us confidence that ORJ-001 represents a novel treatment approach with the potential to repair and reverse fibrosis and modify disease progression in IPF,” Dr. Janethe Pena, CMO of Oorja Bio, said in the release.

“Our team is energized to deliver on our goal of redefining the future of fibrotic diseases, beginning with ORJ-001,” CEO and founder Sujay Kango added. “As we advance ORJ-001 in the clinic, we are embracing the paradigm shift in our biological understanding of IPF pathology that aligns with the central role of the alveolar epithelium. ORJ-001 was designed with this biology in mind and may provide, for the first time, a therapeutic intervention that repairs and reverses fibrosis and promotes disease modification.”

Most patients live only three to five years following their IPF diagnosis. Soon, ORJ-001 and Oorja Bio could give them a fighting chance.

Axiom Space tops $525M in oversubscribed round, announces Swiss subsidiary

funding boost

Axiom Space tacked on an additional $175 million to a previously announced capital raise, bringing the oversubscribed round to a total of more than $525 million.

Axiom shared in February that it had secured $350 million in a financing round led by Type One Ventures and Qatar Investment Authority. In the latest release from the company, Axiom reports that Japan-based MUFG Bank Ltd. joined the round as a new investor, in addition to continued participation from existing backers.

The funding will go toward developing the company's commercial space station, known as Axiom Station, and the production of its Axiom Extravehicular Mobility Unit (AxEMU) under its NASA spacesuit contract.

“Investor interest in this round outpaced what we set out to raise, which speaks to the moment we’re in,” Jonathan Cirtain, CEO and president of Axiom Space, said in the news release. “Our partners see what is possible in low-Earth orbit, and they see who is positioned to lead it.”

Axiom announced last month that it planned to open a Japanese subsidiary July 1. Earlier this week, it also shared plans to establish Axiom Space Switzerland, a wholly owned subsidiary based in Lucerne that is also expected to begin operations this summer.

The Switzerland subsidiary aims to establish Axiom's presence in Europe and help it partner with the European Space Agency and other space organizations and companies on the continent.

“Europe is a founding leader in the creation of the commercial space economy, and Switzerland is uniquely positioned to convene the government agencies, research institutions, and industrial entities that will shape its next decade,” Cirtain added in a separate release. “Axiom Space Switzerland facilitates the scaling of development and deployment of the infrastructure that will succeed the International Space Station.”

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