what is the climate for housing in south texas?
TRANSCRIPT
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What is the Climate for Housing in South Texas?
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Bart Braselton, Executive VP of Braselton Homes- Largest HomeBuilder in the Corpus Christi Area - 3rd Generation Builder in Coastal Bend- Family in Construction Business for 70 Years.- Degrees in Financing and Real Estate from The University of Texas at Austin.
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• The Housing Market is Booming in South Texas
• Demand has Greatly Exceeded Supply
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• What do Builders/Developers do with this Housing Challenge?
• What do the cities of the area do in response?
• Where will all the people live?
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• Housing Challenges in – Corpus Christi – Smaller towns near Corpus Christi – Smaller town in the Eagle Ford Shale area
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Challenge 1
• Reduced Subcontractor Base
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Challenge 2
• Corpus Christi is a Small Market
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Challenge 3
• No Large Scale Developers
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Challenge 4
• Costs Increasing
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Challenge 5
• Appraisals
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Challenge 6
• Lack of Land with Infrastructure
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• Housing Challenges in Small Towns Near Corpus Christi – Ingleside, Aransas Pass
– All of Corpus Christi’s, but magnified, PLUS…
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• Challenge – Opportunity Cost
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• Housing Challenge of Small Towns in the Eagle Ford – They have the same challenges as Corpus Christi, PLUS…
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• Challenge – Building a Sustainable Community
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• Housing Solutions for Small Towns in the Eagle Ford
– That apply to Corpus Christi, as well as small towns near by
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• The Local Government Can Facilitate the Solution – If the market was going to do it, it would have already done it
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• The Government Can Do the Following – Collect market data to identify, for Builders and Developers, the market need
- Realtor Sales (MLS)- Building Permits- Population Growth- Job Growth
– Identify all the developable land – Extend utilities and streets to developable land
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• The Government Can Do the Following – Work with land developers who have end users – Homebuilders
– Create Buyer Incentives, so purchasing is cheaper than renting
– Down Payment Assistance
– USDA Down Payment Programs
– Closing Costs Assistance
– Grants to Lower Home or Lot Costs
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– Modular Homes
– Provide developer incentives to reduce long term risk
– Provide GAP Financing
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• This Makes Sense Because Cities are the Ultimate Long Term Investor, and Want Economic Development
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• Homebuilding is Economic Development
– Homebuilding creates jobs
– Homebuilding creates tax revenue
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• The Tax Revenues Can be Payback to the City for its Developer Incentives
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• A 2007 Study Done in Corpus Christi Showed the Construction of 100 Homes per Year Generated:
– $1.2 million in taxes & other revenue for local governments
– $12.6 million in local income
– 285 jobs• The Recurring Annual Impact of Building
those 100 Homes
– $748,000 in taxes & other revenue for local government
– $2.8 million in local income
– 71 local jobs
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• In Conclusion
The challenges for housing are great, but a good solution for towns in the Eagle Ford is the Local Government facilitating Sustainable Growth.
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Thank You
Questions?