Writer: Andrea Teran
2 min read February 2024 — As San Antonio continues to attract new residents and demand for housing grows, homebuilders are facing notable challenges, primarily due to higher land prices.
“The market has continued to grow. San Antonio has a lot of opportunities for development. Anticipating market changes means making sure there is availability for housing at various price points,” Gilbert Gonzalez, President & CEO of the San Antonio Board of Realtors, told Invest: in a recent interview.
Despite a strong desire to meet the increasing demand for new homes, developers are encountering obstacles in acquiring lots at reasonable prices. According to the National Association of Home Builders and Wells Fargo, an increase of new homebuilders felt “cost/availability of developed lots” were a major issue, rising from 57% in 2023 to 64% in 2024. Data from the Texas A&M University’s Texas Real Estate Research Center shows the median price per acre in San Antonio increased 30% between 2021 and 2023, which can also have an impact on successfully building affordable homes in the region.
“The city and county work hard on their affordable housing policies. While we are extremely affordable in comparison to the rest of the country, $300,000 is a large jump in the median house price from where it was a few years ago,” Gonzalez observes.
Major homebuilding companies, such as Lennar, D.R. Horton, and KB Home, have a large share of the market, holding a significant portion of the developed lots. Smaller builders may venture further into the suburbs where land is more affordable but comes with its own set of challenges, including the availability of utilities and the need for creative problem-solving with local authorities.
San Antonio’s housing market has seen an 11% increase in single-family home sales, as reported by the San Antonio Board of Realtors, with the number of closed listings rising from 1,743 in January 2023 to 2,018 in January 2024. A slight decrease in the average price of single-family homes, coupled with a more pronounced decline in the median price, indicates a market undergoing price adjustments. The Days on Market for single-family homes has remained relatively stable, further indicating steady demand amidst growing inventory. There was a significant increase in active listings across almost all property types in January year over year, suggesting a growth in inventory. Specifically, single-family homes saw a 24% increase in active listings, potentially offering more options to buyers.
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