CONTINUED FROM 1 BUILDING
OVERLOOK PKWY.
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Apartment homes AMI =AREA MEDIAN INCOME
THE NORTH SIDE
price of softwood lumber rose 21.7% while crude petroleum increased 59% between May 2021 and May 2022. In a June NAHB press release, Chair Jerry Konter said increases in interest rates, fuel and building materials— compounded by supply chain disrup- tions and labor shortages—are driving up overall construction costs, home prices, apartment rents and housing production delays nationwide. “Single-family homebuilding is slowing as the impacts of higher inter- est rates reduce housing a ordability,” Konter added. Locally, single-family homebuild- ers, including representatives with David Weekley Homes, said they are weathering industry challenges as they nish construction of communi- ties or plan the launch of new units at existing residential communities. “Developers have been working dil- igently to keep [single-family home] lots in front of builders, though there have been struggles with labor and supply chain, causing some delays in 1 Canyon Pass* Developer: Pedcor Units: 264 Timeline: December 2020-March 2023 Cost: $52 million Rent range: all units at 60% AMI 2 Northview Apartments* Developer: Pedcor Units: 156 Timeline: October 2020-August 2022 Cost: $37.9 million Rent range: 140 units at 60% AMI; 16 units at 30% AMI 3 Caroline at Rogers Ranch* Developer: Morgan Group Units: 351 Timeline: January 2022-January 2024 Cost: $65.8 million Rent range: 175 units market rate; 140 units at 80% AMI; 36 units at 60% AMI 4 Crosswind Apartments* Developer: Pedcor Units: 312
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Despite overall in ation, the rising costs in building materials and delays attributed to supply chain issues, construction of new multifamily homes and single-family residential developments continues in the north San Antonio area.
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281
*THE SAN ANTONIO HOUSING TRUST IS A DEVELOPMENT PARTNER. **THE SAN ANTONIO HOUSING AUTHORITY IS A DEVELOPMENT PARTNER
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1604
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SOURCES: SAN ANTONIO HOUSING TRUST, SAN ANTONIO HOUSING AUTHORITY, TEXAS DEPARTMENT OF LICENSING AND REGULATION, ATLANTIC PACIFIC, REALIANCE, ABACUS CAPITAL GROUP COMMUNITY IMPACT NEWSPAPER
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MAP NOT TO SCALE N
June 2022 report said local median home sales prices rose 24%—from $280,600 to $348,800—between May 2021 and May 2022. However, the same report also showed a 2% drop in local home sales between May 2021 and May 2022, from 3,669 to 3,580. Also, May 2022 featured a larger number of available new local homes— 1.8 months worth of inventory com- pared with 1.28 months in May 2021, according to a SABOR report. Accord- ing to o cials with the Texas A&M University Real Estate Center, a six- month inventory is considered a bal- anced market. Data from TAMUREC also showed on July 1 that total housing sales in Texas peaked in January with nearly 39,000 transactions, but home sales have since declined monthly state- wide. The TAMUREC data also showed a 6.2% drop in sales of home prices below $500,000 since January. Realtors remain optimistic that housing markets, such as San Anto- nio’s, will overcome some downward
about market sales and other trends. The May index of 69 was the lowest future sales expectations gure in the survey since June 2020, NAHB Chief Economist Robert Dietz said. The index reached an all-time high of 90 in November 2020 and a record low of 8 in January 2009, NAHB o cials said. Dietz said builders nationwide are growing more worried about construc- tion costs—which rose 20% between March 2021 and March 2022—and creeping interest rates, which in an e ort to counter in ation, the Fed- eral Reserve hiked by three-quarters of 1 percentage point in June. It was the biggest benchmark interest rate increase in 28 years, o cials with the Fed said. “While low existing inventory and favorable demographics are support- ing demand, the impact of elevated in ation and expected higher interest rates suggests caution for the second half of 2022,” Dietz said in a NAHB news release. According to June gures released by the U.S. Bureau of Labor Statistics, the
statistical trends. SABOR CEO Gilbert Gonzalez participated in a June 14 vir- tual housing market panel discussion with CEOs from four other Realtor associations nationwide. Gonzalez said Texas has received roughly 500,000 new residents each year since 2019, with signi cant in uxes of residents from Florida, Cal- ifornia and New York. “There’s a reason people keep coming to San Antonio, and we feel the most popular reason is if you can nd a house or have opportunities to buy a home at many di erent price points. It’s not easy. The market is just as demanding here as it is elsewhere, but it’s still more a ordable than other parts of the country,” Gonzalez said. Despite the mostly positive sin- gle-family housing numbers, develop- ers and builders said there are signs of stagnation or decline in the industry that could soon become more evident. The National Association of Home Builders/Wells Fargo Housing Mar- ket Index is a monthly survey that tracks NAHB members’ sentiments
COSTLY
CONSTRUCTION
Construction industry analysts say the average prices of various building materials and fuels, alongside pandemic-induced supply chain problems, have contributed to delays in single-family and multifamily developments nationwide. These price percentage increases are updated as of May.
May 2021 May 2022
SOURCE: U.S. BUREAU OF LABOR STATISTICS COMMUNITY IMPACT NEWSPAPER
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COMMUNITY IMPACT NEWSPAPER • COMMUNITYIMPACT.COM
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