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Kim_Gatley
Kim Gatley
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enior Vice President & Director of Research at REOC San Antonio

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San Antonio new home construction could top 2006 record

The pace of home construction in the San Antonio area is on track to break records, according to Jack Inselmann, regional director in San Antonio at Zonda, a housing-market research firm.

Builders started work on 5,132 homes in the second quarter which trails the peak of 5,437 homes begun in the second quarter of 2006, just before the national housing market collapsed.

Builders started construction on 9,666 homes during the first six months of 2021, up from 7,166 last year.  The annual rate of housing starts reached 18,911 at the end of the second quarter, trailing San Antonio’s all-time high of 19,818 homes at the end of the third quarter of 2006. That’s up 33.6 percent from a year ago, the highest year-over-year percentage change among the top 15 U.S. housing markets.

But the price of building materials, especially lumber, are pushing prices up and shrinking the share of new homes costing under $250,000.  The share of homes priced below $250,000 is currently 36 percent, down from 45 percent a year ago.

The prices of pre-owned homes have also skyrocketed during the pandemic as the supply has shrunk. The median price reached $292,600 in June, up 17.3 percent a year prior, according to the San Antonio Board of Realtors.

Inventory — the time it would take for a home to sell if no new homes were listed — was 1.5 months in June. That’s an increase from 1.3 months during the three months prior, but a decline from 2.8 months in June 2020.

The far West Side continues to lead the area in new home construction, producing nearly one-third of the annual rate. New Braunfels and the I-35 corridor are also booming.

Read article: New home construction in San Antonio could break records this year, San Antonio Express News (8/2/21)

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