What is the Climate for
Housing in South Texas?
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.
• The Housing Market is Booming in
South Texas
• Demand has Greatly Exceeded
Supply
• 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?
• Housing Challenges in
– Corpus Christi
– Smaller towns near Corpus Christi
– Smaller town in the Eagle Ford Shale area
Challenge 1
• Reduced Subcontractor Base
Challenge 2
• Corpus Christi is a Small Market
Challenge 3
• No Large Scale Developers
Challenge 4
• Costs Increasing
Challenge 5
• Appraisals
Challenge 6
• Lack of Land with Infrastructure
• Housing Challenges in Small Towns
Near Corpus Christi
– Ingleside, Aransas Pass
– All of Corpus Christi’s, but magnified, PLUS…
• Challenge – Opportunity Cost
• Housing Challenge of Small Towns in
the Eagle Ford
– They have the same challenges as Corpus
Christi, PLUS…
• Challenge – Building a Sustainable
Community
• Housing Solutions for Small Towns in the
Eagle Ford
– That apply to Corpus Christi, as well as small towns
near by
• The Local Government Can Facilitate
the Solution
– If the market was going to do it, it would have
already done it
• 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
• 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
– Modular Homes
– Provide developer incentives to reduce
long term risk
– Provide GAP Financing
• This Makes Sense Because Cities are
the Ultimate Long Term Investor, and
Want Economic Development
• Homebuilding is Economic Development
– Homebuilding creates jobs
– Homebuilding creates tax revenue
• The Tax Revenues Can be Payback to
the City for its Developer Incentives
• 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
• 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.
Thank You
Questions?