3 min read November 2023 — In an interview with Invest:, Chris Little, president of Perry Homes in Central Texas, discussed the company’s performance and the challenges and opportunities in San Antonio. He spoke about strategies for securing financing, technological integration in construction and the community contributions of the Perry Homes Foundation.
What has been keeping Perry Homes busy over the past year and how would you describe the company’s performance during that time?
The challenging environment, even as most builders have reduced their new home starts. Being one of the few Top 10 builders in terms of year-over-year growth is quite a remarkable achievement. We’re seeing more opportunities with new communities coming online, which means increased staffing demand for sales, construction and general office support. Consequently, we’re likely expanding our staff in San Antonio. That being said, there has been a slight cooling in the housing market in terms of demand. This comes after a strong period in the housing market with high demand.
How would you describe the state of the real estate and construction industry in San Antonio over the past 12 months?
Historically, our industry often favors either the sales or construction side. After COVID, sales thrived and real estate transactions came easily. Property values increased and prices accelerated. However, the construction side faced challenges due to supply and labor shortages. Over the past 12 months, this has shifted. Construction has become more efficient, with improved supply chains and more available labor, returning it to pre-COVID norms. Meanwhile, the sales side has experienced challenges. The year began well but rising interest rates and other pressures on pricing have changed the landscape.
How do you assist buyers in securing financing, given the challenges in the current environment?
The increasing rates have reduced buyers’ purchasing power significantly. With higher interest rates, a larger portion of their monthly payments goes to interest, decreasing their buying power. Additionally, there are numerous challenges and pre-qualifications to navigate the contract process and finalize the transaction. The higher interest rates have introduced various qualification challenges. This has prompted builders to offer incentives like rate buy-downs and forward commitments of lower rates. For instance, we’re offering a 5.99% interest rate by purchasing blocks of committed money. This allows our buyers to access lower rates for the lifetime of their loan. There are also different financing products available, such as adjustable-rate mortgages. We’re actively assisting on the mortgage front, partnering with our potential homeowners to choose the right community, home, site and financing product. We’re fortunate to work with two exceptional in-house lenders who help our clients secure their homes.
What is the state of the labor market in the region and what are Perry’s strategies for hiring and retaining talent?
We’ve emphasized trade diversification, actively seeking to expand our roster of tradespeople, whether they are in heating, AC, plumbing or painting. Our goal has been to continuously be in the market, recruiting and partnering with a broader range of trades than before. This initiative was partly driven by our growth in units and as a company in the San Antonio metro area. We recognized the need for more partnerships with labor and various mechanical vendors. On a broader scale, we actively participate at the HBA level, supporting trade schools. Historically, our company has championed these trade schools across the major Texas markets. Our focus is on the future labor force in Texas. Given the long-term labor concerns in the construction industry, we’re investing in attracting individuals to the sector and fostering skilled workers. We’re committed to this cause.
What growth opportunities does San Antonio present and how is Perry poised to leverage them?
San Antonio is renowned as “Military City, USA.” A significant percentage of our homeowners are either current or former military personnel. The military roots in San Antonio are deep-seated and extend widely across various markets. While there’s a notable concentration near active bases, we observe both active and retired military personnel purchasing homes in areas like New Braunfels, Boerne, Seguin and even locations beyond San Antonio’s city limits. The influence and impact of both active and retired military in San Antonio cannot be understated. Additionally, the city’s diversity grows annually. For instance, we’re enthusiastic about the ongoing developments in the southside of San Antonio, such as our project with Rutherford called VIDA. The influx of new businesses and activities at the Port of San Antonio indicates promising synergies. Texas A&M University – San Antonio’s expansion and influence, especially around our VIDA community, excite us. We’re optimistic about further expanding in this segment of the San Antonio market.
How do you ensure each home reflects Perry’s signature design and how do you incorporate standard smart features into the homes you build?
Since our inception in 1967, upholding our reputation has been paramount. This begins with our on-site personnel, like our project managers and construction staff. We usually have twice the construction staff on site compared to other builders, ensuring efficiency and quality control. Our trades and labor are invaluable partners, many of whom we’ve worked with for years. As a process-oriented company, we have numerous checks and a structured building process that our construction team adheres to. We also involve third-party engineers and inspectors at various construction stages, offering an objective perspective on our product and verifying that our quality standards are met. We believe that modern homes should include certain technological elements, meeting today’s buyer expectations. From video doorbells and app-controlled thermostats to wireless light switches, we strive to equip homes with essential tech features.
How do you incorporate technology during the construction process?
The technological integration begins with the homeowner’s journey. We offer a log-in portal call My Account where homeowners can track the construction process, whether they’re local or out of state. We regularly upload photos, enabling them to see their home’s progress. Much of our construction process is automated. Our construction team uses iPads in the field, allowing for immediate photo capturing, rescheduling and constant accessibility to technology. We increasingly rely on technology to enhance the building experience, using videos, photos and continuous communication. Ensuring our clients are well-informed, regardless of their location, is part of our commitment to excellence in the customer journey.
How does the Perry Homes Foundation support the San Antonio community?
The Perry Homes Foundation is a passion project for our owner, Kathy Britton. Her family is immensely supportive of the foundation’s endeavors. Particularly notable are our partnerships where we build homes for veterans. In Central Texas specifically, we’ve donated and gifted multiple homes to veterans. This is a cause we hold close to our heart. Additionally, we’re actively involved in initiatives like “HomeAID” which aids the homeless in the region. We also contribute to city parks and similar community endeavors. Our commitment to giving back is one of our core values and this is thanks to Kathy.
What is your forecast for Perry Homes and the San Antonio construction sector in the next few years?
In the immediate future, we anticipate some challenges due to interest rates. However, in the long term, especially over the next two to three years, we believe San Antonio will thrive. The local economy is becoming more diverse and we’re seeing positive developments, thanks to the efforts of our economic development committees. They’re doing commendable work in attracting businesses to our city. We’re optimistic about San Antonio’s potential to showcase its strengths on both the national and global stage. Moreover, the military’s presence in San Antonio provides stability, making it a consistent and dependable factor regardless of external economic conditions. As for Perry Homes, we’re thrilled with our achievements in San Antonio, especially becoming a top-five builder. Our primary goal is to continue on this growth trajectory and establish ourselves as one of the leading builders in San Antonio.
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