AQUA BOOK 2015 - Page 11

HOUSING MARKETS O ne downside of rapid economic growth in South Texas is a rising overall cost of living relative to the rest of the nation. Since the housing market is largely determined by changes in local as opposed to nationwide conditions, housing expenses for South Texas residents have risen faster than other expenses. Rapid employment and income growth across Texas have spurred home sales, despite a slow recovery in the real estate market nationwide. Median Home Price (12-month moving average) Home price appreciation began to accelerate in 2012. Historically, the median home price of San Antonio was in line with the statewide average. San Antonio has had the highest median home price in South Texas, but its cumulated gain of 17 percent since 2012 was slightly below the state average of 21 percent. Since 2012, house prices have appreciated the most in Corpus Christi at 22 percent. ECONOMIC TRENDS Source: Real Estate Center, TAMU. Construction of new homes and rental units across Texas has lagged behind the rapidly growing demand. . . Home prices and their rates of appreciation have been affected by the balance between supply and demand in the local housing markets. Construction of new homes and rental units across Texas has lagged behind the rapidly growing demand due in part to strong employment and population growth. As an indicator of market tightness, the amount of housing inventory in San Antonio and Corpus Christi dropped to a decade low of below five months in 2014. This means that it would take less than five months to sell all the current inventory without new home units coming on the market. Annual Review of South Texas Economy 9