As Demand For Housing Rises In Texas, One Bank Is Stepping In To Support Homebuilders

While many people predicted the real estate market would be devastated by the pandemic, the reality has been quite different, especially in Texas. Home prices in some areas of the state rose by 30% in the last year, with the Texas market being described as “a pure competition at this point.”

As prices continue to rise, it has also been predicted that first-time buyer demand will outmatch the inventory recovery of the national real estate market. This means that in red-hot markets like Texas, the need for housing is greater than ever before. 

Western Alliance Bank, a full-service bank with more than $60B in assets and named by Forbes as one of the best banks in America, has recognized this need and the immense growth potential within the Texas market to accommodate the mounting demand. In fact, it has led to the bank recently announcing it will be expanding its commercial real estate division into key Texas markets. 

Building on deep experience in commercial real estate in key U.S. markets, Western Alliance will be opening offices in Dallas and Houston, where it will also provide services to the Austin and San Antonio markets. In addition, it will be increasing its commitment in Texas to further serve the state’s homebuilder development and construction segments.  

“Western Alliance Bank has had a presence in the Texas commercial real estate industry for several years, specifically in the homebuilding and land development arena,” said Steve Mueller, senior director of Western Alliance’s Commercial Banking Division in Texas. “Having more of our experienced commercial real estate experts on the ground in this important set of markets means we can do more for our clients — a hallmark of the Western Alliance Bank approach.” 

Mueller said the bank takes a long-term view of its markets, adding the Texas market holds promising opportunities for Western Alliance Bank customers both now and in the future.

Western Alliance Bank holds more than $60B in assets, and it has been lending to homebuilders and developers since 2003. Since 2015, the bank has served builders and developers in Texas by offering limited recourse and recourse financing, acquisition and development financing for master-planned communities and subdivisions, build-to-rent financing, land/lot banking, and borrowing base facilities. 

Mueller, who has more than 25 years of experience in the residential construction industry, will lead the Dallas, Houston, Austin and San Antonio teams. 

“In addition to being one of the hottest centers for commercial real estate development in the nation, Texas has long been a dynamic, high-growth market that is attracting even more corporate relocations and an expanded influx of talent looking for space to live, work and enjoy all that the state offers,” Mueller said in a statement. 

Luis Torres, a research economist at the Texas Real Estate Research Center at Texas A&M, said that it is a seller’s market in the state. 

“The pandemic has increased the preference for homeownership, but supply has been lagging behind since even before the pandemic,” he added. “So, the problem right now is that you have really strong demand facing weak supply, and that’s pushing up prices at a very high rate.”

“All of this highlights the strong need for more residential housing in Texas,” Mueller said.

Western Alliance Bank has put together a team of construction lending experts with the experience to meet the unique needs of Texas builders, developers and other real estate industry professionals.

“Western Alliance Bank has assembled a team of highly experienced lenders in Texas who have spent their careers focused solely on the homebuilding and land development segment,” Mueller said. “All of these lenders are longtime Texas residents and each of them has prior experience working with some of the leading financial institutions serving this segment.” 

This article was produced in collaboration between Western Alliance Bank and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.