Houston-area builders will start construction on 28,000 homes this year, slightly more than last year but a 10 percent increase over the market’s 2016 trough, Metrostudy’s Lawrence Dean said Thursday morning at a quarterly update and economic outlook breakfast.

The market over the past couple year has improved incrementally, Dean said.

“It’s generally positive,” he said. “Not gangbusters positive, but not negative.”

Builders will be tested this year as construction labor remains tight and material costs go up in the wake of Harvey-related remodeling efforts.

Dean said builders next year will start 500 more homes than this year, though that’s still not enough to satisfy expected demand.

“We want it to be 32,000 a year,” he said.