San Antonio has become the only major Texas housing market to see an increase in new home construction over the past year, according to data from consulting firm Zonda Advisory. The San Antonio metropolitan area recorded 18,200 single-family housing starts in the last 12 months, representing a 1 percent rise compared to the previous year, as reported by the San Antonio Business Journal.
In contrast, Austin experienced a significant slowdown. Housing starts in Austin dropped nearly 15 percent in 2025 to 14,620 units, which is also a sharp 40 percent decrease from its levels in 2022. This decline has been accompanied by falling home values and reduced mortgage activity.
Combined, the San Antonio and Austin regions accounted for about 32,800 housing starts over the past year. This total makes them collectively the third-largest homebuilding market in the United States, behind Dallas-Fort Worth and Houston.
Bryan Glasshagel of Zonda Advisory commented on these trends: “Should Austin continue to pull back, San Antonio is going to be the volume leader in the state.” He added that San Antonio now ranks sixth nationally for new home construction and remains one of the few large markets still growing.
Most of San Antonio’s growth has occurred outside city limits and beyond Loop 1604. Suburban areas such as Converse, Elmendorf, Castroville, and Adkins have seen notable increases in new housing developments. These trends point to expansion mainly in southern and eastern suburbs.
Data from the San Antonio Board of Realtors further highlighted market conditions. In October, home sales declined by 11 percent to 2,639 properties sold. However, median prices remained steady at $305,000 and inventory was measured at just over six months—levels local brokers describe as balanced.
“While sales have slowed, steady pricing and strong inventory levels give both buyers and sellers more flexibility,” said Sabor Chairman Ed Zapata.
This situation marks a change from two years ago when Austin was building significantly more homes than San Antonio.
