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San Antonio posted one of the sharpest permitting pullbacks among major US markets, signaling that local new-home construction lost momentum after the pandemic-era boom.
For San Antonio, the pullback fit a wider pattern in boomtown markets, where builders responded to softer conditions by slowing activity after years of building.
Current mortgage rates remained near 7%, while construction, fuel, and material costs kept pressuring builders and affordability, adding friction for new-home activity in San Antonio.
Even with today's pullback, the housing shortage remained unresolved, raising concern that a thinner construction pipeline could tighten San Antonio's market when buyers return.
A Late-Q1 federal order aimed to cut barriers, but an expected central-bank rate hike threatened to add borrowing costs for San Antonio buyers and builders.