HOME ECONOMICS

San Antonio barely passes new housing affordability report card

Houston and Austin both took home better report cards.

Getty Images

A new national real estate report card has given San Antonio a barely passing grade for housing demand and affordability.

Realtor.com's first-ever Metro Affordability & Homebuilding Report Card compared the 100 largest metropolitan areas in the U.S. based on two scores that measured the most important factors for potential home buyers: an "Affordability Components" score that examined the current affordability of housing for residents, and a "Homebuilding Components" score that analyzed the rate of new home construction to meet future demand. Both scores were then used to calculate the final score and assigned a letter grade.

Only 10 total U.S. metros, including Houston (No. 4) and Austin (No. 6), received grades in the "A" range — A+, A, A- — representing the most balanced locales for "favorable current affordability conditions and healthy future inventory growth to sustain them."

"Homebuilding and affordability are inseparable, and if we want to improve affordability in a lasting way, we need to build more homes," said Realtor.com chief economist Danielle Hale. "The metros at the top of these rankings show that buyers benefit most when communities pair homes that are attainable for today's local earners with enough new construction to support tomorrow's demand."

Only two metros earned "A+" grades with a total score of 77.5 or higher: De Moines-West DeMoines, Idaho (83.4 points) and Raleigh-Cary, North Carolina (82.8 points).

San Antonio was rated "C+" overall with total score of 59.1 points, an "Affordability Components" score of 62.2 points and a "Homebuying Components" score of 56 points. The city ranks 35th in the national ranking of the best metros for affordability and housing.

McAllen-Edinburg-Mission also earned the same rating as San Antonio, as did four more U.S. metros: Pittsburgh, Pennsylvania; Cincinnati, Ohio-Kentucky-Indiana; Deltona-Daytona Beach, Florida; and St. Louis, Missouri-Illinois.

Realtor.com's report said San Antonio-New Braunfels has a median household income of $73,281, and home listings have a median price of $331,705. The report's findings also show that newly built homes in the region cost 4.5 percent more than existing homes on the market.

San Antonio has a 0.85 housing permit-to population ratio, meaning the metro is building less than the national average of homes per resident. The report suggests "supply-side price relief is not likely to be felt by buyers" in the region unless there's a sharp increase in new construction permits soon.

San Antonio's "Realtors Affordability Score," or the share of for-sale inventory affordable to households at different income levels, is 0.666, not far off from the national average of 0.675.

Housing market grades across other Texas metros
Houston and Austin were the only two Texas metros to earn a grade in the "A" range.

Houston outperformed every Texas metro for housing and affordability with its solid "A" rating. Newly built homes in the Houston area cost about 7 percent more than existing homes on the market, and the metro has a 1.88 housing permit-to population ratio, meaning the metro permits 88 percent more new homes than what would be considered typical based on its population and national average construction levels.

Austin earned an "A-" with a combined score of 72.5 points. Unlike many other U.S. metros, newly built homes in the Austin area are actually more affordable than existing homes on the market. Austin has a negative new construction premium, where new build homes are 6 percent cheaper than existing ones.

The Austin metro also has a permit-to-population ratio of 2.37. Combined with the negative new construction premium, these factors signal that "builders are delivering homes at a rate well above the metro's population share — and at prices slightly below existing homes."

This is a snapshot of the factors that impacted Austin's grade:

Realtors Affordability Score: 0.639
Median listing price: $501,200
Median household income: $102,412

Elsewhere in Texas, Dallas-Fort Worth was given a "B+" rating, while El Paso's housing market performance was only worthy of a "D" grade.

The top 10 U.S. metros with the highest-performing housing markets are:

No. 1 – Des Moines-West Des moines, Idaho (A+)
No. 2 – Raleigh-Cary, North Carolina (A+)
No. 3 – Columbia, South Carolina (A)
No. 4 – Houston, Texas (A)
No. 5 – Indianapolis, Indiana (A)
No. 6 – Austin-Round Rock-San Marcos, Texas (A-)
No. 7 – Jacksonville, Florida (A-)
No. 8 – Oklahoma City, Oklahoma (A-)
No. 9 – Palm Bay-Melbourne, Florida (A-)
No. 10 – Columbus, Ohio (A-)

CRANE WATCH

Massive Seguin development teases first wave of tenants

Rendering courtesy of NewQuest

Seguin Exchange includes retail, dining, and housing.

A new leasing plan is shedding some light on Seguin Exchange, the new 544-acre development now taking shape at the junction of Interstate 10 and TX 46. The massive project is attracting some of the biggest names in retail and dining.

Lowe’s is the largest anchor confirmed on the 750,000-square-foot shopping center’s plans, but a number of other chains have signed leases. On the dining side, the brochure confirms Chipotle and Dave’s Hot Chicken. Retail tenants include Skechers, Milano Nail Spa, and Chinese variety store Miniso.

The leasing plan also teases more than a dozen new-to-Seguin businesses that are currently in negotiations. The document lists Olive Garden, Longhorn Steakhouse, Jersey Mike’s Subs, Firehouse Subs, Panda Express, and an unnamed coffee shop among the restaurants.

Houston-based firm NewQuest is also in talks with Cavender’s, Burlington, PetSmart, Eyemart Express, Bath & Body Works, and EoS Fitness. A proposed wholesale membership club, movie theater, and big box anchor are also shown on the plan, although it does not specify the brand names.

Outside of the retail strip, the development is also generating excitement with some proposed entertainment options. The aerial map lists an indoor practice facility for an unnamed sport and a resort-style hotel with a Crystal Lagoon similar to the one recently completed at Hyatt Hill Country Resort & Spa. A shell-shaped structure appears to be an amphitheater or concert venue.

The project will also include hospitality and entertainment tenants, medical facilities, multifamily housing, and industrial space.

NewQuest first acquired the land in 2007, then patiently waited as South-Central Texas growth slowly inched toward Seguin. Now, more than 60 master-planned communities are under construction across the region, and Seguin's population and job growth are increasingly drawing national players.

"Seguin Exchange is the most significant mixed-use development in Seguin and Guadalupe County, bringing a tremendous economic impact through sales taxes, property taxes, and jobs," said Austin Alvis, president and chief development officer of NewQuest, in a previous release.

The 250-acre industrial component will be developed through a joint venture with an unnamed Houston-based firm. Ohio-based automotive supplier KTH Parts Industries Inc. has already signed on to break ground on 40 acres in late 2026.

NewQuest says it plans to complete work on infrastructure, utilities, and roads by the end of the year.NewQuest previously said that few stores will debut in late 2027, but most retailers, service businesses, and restaurants will open in 2028. The firm notes that the closest comparable retail destination to Seguin currently sits 130 miles east in Katy, where NewQuest is also developing the 165-acre Texas Heritage Marketplace.

development seguin retail chains dining real estate