Page 8 - Builder Brief February 2025

2025 PRESIDENT
2025 IS OFF TO A RECORD BREAKING START
We started the new year with the most well-attended Housing Forecast in history. The Greater San Antonio Builders Association (GSABA) welcomed 774 members to the 2025 Housing Forecast, co-hosted by Hollywood Crawford Garage Doors & Openers, the National Association of Home Builders (NAHB), and Zonda. It was a great networking event, and I want to thank our partners who helped us host the event at the JW Marriott Resort in San Antonio.
Mayor Ron Nirenberg kicked the breakfast off and shared great news about our community with the attendees, highlighting the expansion of the San Antonio Airport with the addition of an international terminal and direct flights to Washington, DC, and Frankfurt, Germany.
Bryan Glasshagel with Zonda reported that San Antonio is now ranked fifth among the nation's top 25 housing start markets. Bryan shared that new home closings continue to outpace starts in the greater San Antonio area, and 44 percent of the start activity was priced under $300,000, with 40 and 50-foot lots dominating the market.
As a native San Antonian it was interesting to note that West San Antonio had the most housing starts in 2024, followed by East San Antonio, which saw a significant growth spurt, and South San Antonio, which boasted over 10 percent of all starts in San Antonio. Zonda reported that the average new home price in San Antonio is now $395,540. Austin’s average home price in 2024 was $559,743, which makes San Antonio much more attractive to out-of-town buyers.
The good news for the residential construction industry is that home starts are projected to grow by 5 percent to 8 percent this year. While interest rates are projected to stay around the 7 percent level for a 30- year loan for the next several months, this will push demand for new homes. With Builders offering interest-rate buy-down programs, 2025 should be a strong year for sales, which is great news for our industry and members.
Dr. Rob Dietz, Chief Economist for the National Association of Home Builders (NAHB), shared some interesting facts with the attendees. The San Antonio MSA population grew faster than the state and national rates due to our local economy and competitive home prices. Dr. Dietz also reported that $93,870 of the cost of a new home is in building codes, land use, environmental, and federal/state/local fees.
He highlighted a few areas of concern, with insurance premiums up 22.4 percent since 2022 and the construction labor force falling. The reduction in the labor force isn’t good news, with the residential and remodeling industries seeing growth over the next five years. Immigrant workers are a hot topic in the labor force right now and will be of some concern in the future. Dr. Dietz shared that lumber prices were near pre-pandemic levels, but building materials costs have surged.
JEFF KUWAMURA
We finished the week off with the well-attended 5th Annual GSABA BBQ Cook Off on January 10th and 11th. Congratulations to our winners and thank you to our sponsors and volunteers who helped make the washer tournament and cook- off a success! I want to thank Colby Duke with Hotchkiss Insurance, Eric Bernal with FBS, and Chely Trejo with GSABA for leading a great team!
If you haven’t made your reservation for Rally Day on February 11th, it’s not too late to join us for a day at the Capitol.
Sincerely,
Jeff Kuwamura
Thank You to Our
Housing Forecast Partners
Hollywood Crawford Garage Doors & Openers, Zonda , CPS Energy, Gibson Plumbing, James Hardie Building Products, Hotchkiss Insurance, 84 Lumber, Pape Dawson Engineers, Meritage Homes, Maverick Warranties & Insurance, Reece Kitchen + Bath, Southstar, Frost Bank, The Schrader Group, Arcxis, Housifi, Parrish & Co., HomeTeam Pest Defense, StrucSure Home Warranty, Builders First Source, ATS Engineers, Burgess Construction
8 FEBRUARY 2025 | GREATER SAN ANTONIO BUILDERS ASSOCIATION