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?