San Antonio’s strong housing market is expected to continue in 2016. The nonprofit research and education organization Urban Land Institute (ULI), has named the city among its top real estate markets to watch in the coming year, according to Builder Magazine.
“A much-watched feature of the ULI Emerging Trends analysis is the Markets to Watch rankings, which plots 75 of the U.S.’s most important market areas…based on relative expectations for investment, development, and home building,” they said.
San Antonio is No. 20 on ULI’s list, having had a stellar year in which it was named a Best Buy City by Forbes and one of the best cities in the nation to find a job.
“The local housing market, both single-family and multifamily, is viewed as offering two of the best investment opportunities, with the other commercial sectors viewed as offering good potential for 2016,” they said.
Among the impressive contributing factors:
- An 18.2% increase in new-home closings
- A rise in new homes sold: 8,539 in the 12 months that ended in August, up from 8,416 the previous year
- Closings increased for new and existing homes
- The average value of new homes rose 6.8% to $279,041 per unit
- The average mortgage size on new homes was up 8% to $257,462
- Foreclosures and real estate owned (REO) closings were down
Overall Market View
Emerging Trends in Real Estate 2016 takes a look at “market trends that will drive the fortunes of 75 of the United States’ leading real estate markets,” said Builder Magazine. Their main takeaway: “Last year, we commented that housing was ready to step off the roller coaster. It appears that in a majority of markets, housing has indeed stabilized and is poised to begin a sustained upward trajectory.”
For San Antonio's hot economy, that means more of the same. According to the San Antonio Business Journal, “The San Antonio-New Braunfels MSA gained 9,200 jobs last month, taking total employment to nearly 997,000 jobs. The metro area added 38,100 jobs since October 2014, a 4 percent gain year over year.”
The city’s low 3.7 percent unemployment with a 1.4 million population means that, “There are not many cities on this list more impressive,” said Business.com. They find San Antonio’s thriving “healthcare, business and IT services, biotechnology, military, and financial services industries,” particularly impressive.
Forbes named the San Antonio-New Braunfels metro area the 10th Best Big City for Jobs and one of the Best Places for Business and Careers. With continued expansion at companies like Toyota Motor Manufacturing Texas, which is in the process of adding hundreds of employees and increasing shifts in response to high demand for the Tacoma and Tundra trucks, which are manufactured at the Southside plant, and ongoing growth at the exciting Brooks City Base, 2016 is set to be a great year.
Of course, the popularity and population growth of cities like San Antonio has an impact on available inventory, which dovetails with a growing trend outlined by ULI.
“Another 2015 trend was that peak levels of millennials and baby boomers would be making housing decisions in the next five years,” said Builder. “This could have a significantly positive impact on housing: millennials buying their first homes and baby boomers either downsizing or retiring to a new home or perhaps purchasing a second home. Most markets will need to add housing to keep up with any type of increase in demand. The increase in housing stock, both single-family and multifamily, has lagged household growth in many markets.
These trends are being addressed for those looking to buy a home in San Antonio by masterplanned communities like Mission del Lago. This favorite Southside community has grown in sales and admiration over the past year as families, retirees, employees of local companies, and military continue to discover the array of Southside new homes from the $150s, resort amenities, and convenient yet serene location.
For more information about living in the fastest-growing neighborhood in South San Antonio, visit Mission del Lago or download our Guide to Buying a New Home in Southside San Antonio.