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What is the Climate for Housing in South Texas?

What is the Climate for Housing in South Texas?. Bart Braselton, Executive VP of Braselton Homes - Largest HomeBuilder in the Corpus Christi Area - 3 rd Generation Builder in Coastal Bend

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What is the Climate for Housing in South Texas?

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  1. What is the Climate for Housing in South Texas?

  2. 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.

  3. The Housing Market is Booming in South Texas • Demand has Greatly Exceeded Supply

  4. 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?

  5. Housing Challenges in– Corpus Christi – Smaller towns near Corpus Christi – Smaller town in the Eagle Ford Shale area

  6. Challenge 1 • Reduced Subcontractor Base

  7. Challenge 2 • Corpus Christi is a Small Market

  8. Challenge 3 • No Large Scale Developers

  9. Challenge 4 • Costs Increasing

  10. Challenge 5 • Appraisals

  11. Challenge 6 • Lack of Land with Infrastructure

  12. Housing Challenges in Small Towns Near Corpus Christi– Ingleside, Aransas Pass – All of Corpus Christi’s, but magnified, PLUS…

  13. Challenge – Opportunity Cost

  14. Housing Challenge of Small Towns in the Eagle Ford – They have the same challenges as Corpus Christi, PLUS…

  15. Challenge – Building a Sustainable Community

  16. Housing Solutions for Small Towns in the Eagle Ford – That apply to Corpus Christi, as well as small towns near by

  17. The Local Government Can Facilitate the Solution– If the market was going to do it, it would have already done it

  18. 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

  19. 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

  20. – Modular Homes – Provide developer incentives to reduce long term risk – Provide GAP Financing

  21. This Makes Sense Because Cities are the Ultimate Long Term Investor, and Want Economic Development

  22. Homebuilding is Economic Development – Homebuilding creates jobs – Homebuilding creates tax revenue

  23. The Tax Revenues Can be Payback to the City for its Developer Incentives

  24. 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

  25. 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.

  26. Thank You Questions?

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