San Antonio, Texas, January 3, 2026
San Antonio has seen substantial growth in its residential construction market, becoming a prominent center for new home development. With over 2,000 building permits issued in early 2025, the city ranks eighth nationally. Despite a drop in home sales, average prices have risen. Factors like affordability and economic growth aid this trend, while challenges such as rising costs loom ahead.
San Antonio’s Residential Construction Market: A Comprehensive Overview
San Antonio, Texas – In recent years, San Antonio has experienced significant growth in its residential construction sector, positioning itself as a leading hub for new home development in the United States.
Current Market Dynamics
As of early 2026, San Antonio’s residential construction market remains robust, ranking eighth nationally in new home construction. In the first two months of 2025, over 2,000 building permits were issued, surpassing Austin’s permit activity during the same period.
Key Market Indicators
- Home Sales and Prices: In November 2025, 2,206 single-family homes were sold, a 19% year-over-year decrease. Despite this decline, the average price rose to $374,831, a 5% increase from the previous year.
- Inventory Levels: Active listings increased by 14% year-over-year to 16,114, indicating a more balanced market environment.
- Construction Activity: The number of units under construction as of December 31, 2024, was 6,845, which is 29% lower than the 10-year historical average of 9,609.
Factors Influencing the Market
Several factors contribute to San Antonio’s strong residential construction market:
- Affordability: The city’s median home price of approximately $312,000 in September 2024 is significantly lower than Austin’s median of $425,000, attracting more buyers.
- Economic Growth: San Antonio’s projected addition of 13,500 new jobs supports housing demand, particularly in northern submarkets.
- Builder Activity: Major builders like Lennar and KB Homes have been active in the market, with Lennar accounting for 61% of single-family permits in the third quarter of 2024.
Looking Ahead
The San Antonio residential construction market is expected to continue its growth trajectory, supported by strong demand, affordability, and ongoing economic development. However, challenges such as rising labor and material costs may impact future construction activity.
Frequently Asked Questions (FAQ)
What is the current state of San Antonio’s residential construction market?
As of early 2026, San Antonio’s residential construction market remains strong, with the city ranking eighth nationally in new home construction.
How have home sales and prices trended in recent months?
In November 2025, 2,206 single-family homes were sold, a 19% year-over-year decrease. Despite this decline, the average price rose to $374,831, a 5% increase from the previous year.
What factors are contributing to the growth in San Antonio’s housing market?
Key factors include the city’s affordability, with a median home price of approximately $312,000 in September 2024, and strong economic growth, with projections of 13,500 new jobs supporting housing demand.
Which builders are active in San Antonio’s residential construction sector?
Major builders like Lennar and KB Homes have been active in the market, with Lennar accounting for 61% of single-family permits in the third quarter of 2024.
What challenges might impact future construction activity in San Antonio?
Challenges such as rising labor and material costs may impact future construction activity.
Key Features of San Antonio’s Residential Construction Market
| Feature | Details |
|---|---|
| Market Ranking | 8th nationally in new home construction as of early 2026 |
| Permits Issued | Over 2,000 building permits in the first two months of 2025 |
| Home Sales | 2,206 single-family homes sold in November 2025, a 19% year-over-year decrease |
| Average Home Price | $374,831 in November 2025, a 5% increase from the previous year |
| Inventory Levels | Active listings increased by 14% year-over-year to 16,114 in November 2025 |
| Units Under Construction | 6,845 units as of December 31, 2024, 29% lower than the 10-year historical average |
| Affordability | Median home price of approximately $312,000 in September 2024, lower than Austin’s median of $425,000 |
| Economic Growth | Projected addition of 13,500 new jobs supporting housing demand |
| Builder Activity | Lennar accounted for 61% of single-family permits in the third quarter of 2024 |
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Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
