Fields of Dreams or Nightmares: San Antonio's Stadium Proposal and Housing Crisis
The ongoing controversy surrounding a proposed baseball stadium project in San Antonio provides a compelling case study of this complex balancing act, let’s take a look at this big stadium project idea that’s shaking up The Lone Star City.
*The plan aims to create a $160 million stadium for the San Diego Padres' AA affiliate along San Pedro Creek in downtown San Antonio. The stadium is slated to be finished for opening day in April 2028.
As a Texas Realtor, my love for the Lone Star State runs deep, rooted in childhood memories of summer visits to see my dad and my stepmom. Every year, my mother would put me on a Southwest Airlines flight from Oklahoma City, and I'd eagerly anticipate those honey roasted peanuts and the cherished pilot's wings!! I can still recall the thrill of being invited into the cockpit – the special treat they would give to us divorced kids flying solo back in the day that's sadly no longer possible. These formative experiences sparked my passion for Texas, ultimately leading me to call San Antonio home. I’ve been to the Alamo more than most normal people. Spoiler alert, there is no basement.
Today, I witness San Antonio as a city on the rise y’all, with our vibrant culture, a growing economy, and a rich history that continues to captivate both residents and visitors alike. However, beneath the surface of this bustling metropolis lies a stark reality: an affordable housing crisis is gripping the Alamo City, leaving many residents struggling to keep a roof over their heads. As a realtor deeply connected to this community, I'm committed to addressing this challenge and helping my fellow Texans navigate such a complex housing market.
The city’s current situation brings to light a critical question faced by growing urban centers across the nation: how can cities prioritize economic development while also ensuring the well-being and stability of their residents, especially those most vulnerable to displacement?
The ongoing controversy surrounding a proposed baseball stadium project in San Antonio provides a compelling case study of this complex balancing act, let’s take a look at this big stadium project idea that’s shaking up The Lone Star City.
A City in Crisis: The State of Affordable Housing in San Antonio
San Antonio is currently grappling with a severe shortage of affordable housing options. The crisis affects both renters and homeowners, as evidenced by the statistic that half of all renters and a quarter of homeowners in San Antonio are considered “housing cost-burdened,” meaning that they spend at least 30% of their income on housing. The monetary strain can trigger a domino effect on people and households, compromising their capacity to cover essential expenses, set aside funds for upcoming needs, and play an active role in stimulating the local economic landscape.
Rising costs are a primary driver of the crisis we face. Coupled with the scarcity of deeply affordable housing options, this trend is pushing many residents to the brink of financial instability. Families are often forced to relocate to more affordable areas, even if it means leaving their communities and support networks behind.
A Home Run for the City? The Proposed Baseball Stadium Project
At the heart of this controversy lies a proposed $160 million baseball stadium and entertainment district project. Designated Bidders LLC, the entity that owns the San Antonio Missions baseball team, is spearheading the project, with the aim of constructing the stadium near the San Pedro Creek Culture Park.
The City Council and Bexar County Commissioners Court have already approved the project's financing plan, which includes $126 million in city bonds, $34 million from the Missions owners, and anticipated revenue from a Tax Increment Reinvestment Zone (TIRZ). The projected economic benefits, including revitalization of a previously neglected area, job creation, and the establishment of a new community asset, have fueled support for the project.
However, the project faces a significant hurdle: land acquisition. The proposed stadium requires a 2.3-acre parcel currently owned by the San Antonio Independent School District (SAISD) and used as a parking lot for Fox Tech High School.
A Strike Against Affordable Housing? The Soap Factory Apartments Controversy
A major point of contention surrounding the proposed development is the planned demolition of the Soap Factory Apartments, a 381-unit complex offering relatively affordable housing in downtown San Antonio. This decision has sparked outrage among residents, housing advocates, and community leaders.
Sarah Honeycut, a tenant of the Soap Factory Apartments, was quoted saying, "It's disheartening to know you are so easily sacrificed on the altar of the almighty dollar." The planned demolition highlights a key concern shared by many: that the pursuit of economic development is coming at the expense of those who can least afford it.
The potential displacement of hundreds of tenants raises serious concerns about exacerbating the existing affordable housing crisis and potentially increasing homelessness in San Antonio. Although relocation assistance is being offered, critics argue that the proposed $2,500 rental relocation packages are insufficient to address the long-term needs of displaced residents, especially given the already limited availability of affordable housing in the city.
SAISD Steps Up to Bat: Leveraging Land Ownership for Community Benefit
In a move that has injected further complexity into the situation, SAISD is leveraging its ownership of the necessary land parcel to push for substantial community benefits. Superintendent Jaime Aquino has outlined stringent terms for the land sale, including the following demands:
Construction of a $45 million building for the Advanced Learning Academy
A guarantee of at least 1,250 affordable housing units within SAISD boundaries
$400,000 in annual compensation for forgoing a competitive bidding process
A seat for Aquino on the TIRZ board overseeing the stadium project
A new parking garage with 250 spaces for Fox Tech High School
SAISD is emphasizing that affordable housing commitments are non-negotiable, arguing that the district has a responsibility to prioritize its educational mission and support its students and families, many of whom are struggling with the affordable housing crisis.
Deputy Superintendent Patti Salzmann stated that “[SAISD officials] believe that having the superintendent serve as a representative on the TIRZ board would protect SAISD’s long-range master plan and interests, and mitigate or avoid further declines in enrollment.” This comment highlights the district's belief that the lack of affordable housing is directly impacting its student population.
A High-Stakes Game: The Path Forward
*Estimated taxable value
The proposed baseball stadium project has ignited a heated debate in San Antonio, pitting economic development against the urgent need for affordable housing. With SAISD's bold demands on the table, the project's future hangs in the balance. Designated Bidders faces a December 9 deadline to present a counteroffer to SAISD, and the SAISD board is scheduled to vote on the proposal on December 16.
The outcome of this negotiation will have far-reaching consequences for the city. If the stadium project moves forward without adequate provisions for affordable housing, it could exacerbate the existing crisis, displacing residents and further straining an already burdened system.
On the other hand, if SAISD’s demands are met, the project could serve as a model for equitable development, demonstrating that economic growth and social responsibility can go hand in hand.
Conclusion: A Call for Comprehensive Solutions
The San Antonio Missions ballpark project presents a complex dilemma, one that reflects a broader national conversation about the challenges of balancing economic development with the need for affordable housing. SAISD's assertive stance highlights the critical role of community stakeholders in shaping development outcomes and holding decision-makers accountable.
Ultimately, the project's fate hinges on the willingness of all parties to find a solution that balances competing interests and prioritizes the needs of San Antonio residents.
The situation is one that should give us pause for thoughtful debate, and emphasizes the need for comprehensive affordable housing policies that go beyond the scope of individual development projects. San Antonio, like many other cities grappling with similar challenges, must prioritize the creation and preservation of affordable housing as a cornerstone of its urban development strategy.
Councilmember Teri Castillo's proposed housing policies, the CLT Tiered Affordability and Stay SA initiatives, offer potential solutions. These policies focus on promoting community land trusts, streamlining affordable housing production, and preserving the existing affordable housing stock.
While the powers that be don't offer details on their implementation or potential drawbacks, these policies, if effectively implemented, could represent a significant step towards addressing San Antonio's affordable housing crisis and ensuring that all residents have access to safe, stable, and affordable housing.
The Presidential Election: Does it, Will it, Can it..affect the housing market?
With the presidential election just around the corner, it's no surprise that housing affordability has taken center stage. Both major party candidates have addressed the issue on the campaign trail, and it's clear that young voters are prioritizing affordable housing above all else.
As a Realtor and advocate for affordable housing, there is one thing that I wake up every morning thinking about. No, it’s not how much I wish someone would make coffee for me…that’s my second thought. It’s, “How can I structure my day and negotiate my deals better today to get my buyers into a house this month?” Not because I get off on the thrill of the deal, it’s because my buyers these days are EXHAUSTED, tapped out, pushed to the edge of what is humanly reasonable, twisting themselves into financial contortions that would make any Cirq du Soleil acrobat jealous of their flexibility. I have moral rage surrounding the issue of affordability.
On top of the burden of home buying affordability and predatory mega builders today, the powers that be keep telling us that “The economy is fine stupid, it’s totally normal that you are working three jobs to buy this house!”…we are in an election year. Now y’all know elections DON’T EVER do anything to thread the needle of solving any housing crisis, but they do affect everything else on a deeply psychological level when it comes to how we do business and thrive (or not) in our daily lives. Folks generally take a ‘wait and see what happens’ approach the year leading up to an election to make big decisions. Affordability in the housing market, well that’s its own animal.
Source: CNBC.com
The Data Explanation: “Too Much, too many, no number! I’ll buy it tomorrow maybe.”
As we all know, decisions in residential real estate can be overwhelming, especially when it comes to navigating the complex world of market data and how real estate professionals like myself valuate houses. With the presidential election just around the corner, it's no surprise that housing affordability has taken center stage. Both major party candidates have addressed the issue on the campaign trail, and it's clear that young voters are prioritizing affordable housing above all else. As they should.
Source: CNBC.com
So, what's the deal with the housing shortage?
Based on “The Numbers” it's clear that a lack of supply has been the primary driver of high home prices and worsening affordability in the US. But here's the thing: the estimates of the housing shortfall vary wildly and there is significant lag time when collecting data on a national scale, ranging from 1.5 million to 5.5 million units. That's a big range. Housing markets can and do behave drastically different when looking at averages depending on where you live. The jury is out on how much we can rely on the humans who interpret that data to tell us what might happen next, but the takeaway is clear: we absolutely need more housing to meet demand nation wide.
Source: CNBC.com
Now, let's talk about the different approaches to calculating the housing shortfall. The National Association of Home Builders and Freddie Mac rely on assumptions about long-term housing vacancy rates, while Moody's Analytics takes into account pent-up household formations. Up for Growth, a national housing member network, nets out second and vacation homes, as well as uninhabitable units, leading to their higher estimate. And the National Association of Realtors takes a different approach by comparing current levels of housing construction with historic averages.
So, what does this mean for us in New Braunfels? It means that we need to focus on increasing the supply of housing to meet the demand. And that's exactly what the Harris-Waltz campaign is proposing: incentives to promote new housing construction, including tax incentives for building starter homes, recommendations for streamlining permitting processes, and initiatives to stop predatory investing (my personal favorite thing to lament over) in single-family homes. Their goal is to facilitate the production of 3 million housing units over four years.
One thing that I am noticing in our market is the shift in the square footage size in new home builds in Central Texas. Gone are the days of massive, 5,000-square-foot mansions and good luck trying to sell one! Instead, builders are now constructing homes with smaller square footage, often in the range of 2,000-3,000 square feet. And I think this is a game-changer for families who are looking for a unique solution to the affordability crisis. Why not consider buying one of these smaller homes and converting it into a "multi-generational legacy home"? With a little creativity and some smart design, you could easily add an in-law suite or a separate living space for your adult children. And with builders now purposefully designing homes with layouts that make it easy to add or subtract bathrooms, walls, and kitchens, the possibilities are endless.
As for the Trump-Vance campaign, they've suggested reducing government regulation and curbing immigration to expand the housing supply. While I understand the desire to reduce regulation, I'm not convinced that this approach will solve the problem. In fact, it might even exacerbate the issue by limiting the number of people who can contribute to the housing market.
Action Plan: Where to Start?
It's clear that we need a multifaceted approach to building and sustaining affordable housing that encourages new construction, motivates homeowners to sell their homes, and reduces regulation. We need to incentivize local and state governments to reduce the costs associated with homebuilding, and that won’t happen on its own y’all! Get involved in your communities and vote, it’s the ONLY way. It may seem like your votes don’t matter sometimes..but they DO!
Speaking of mega mansions that would be GREAT to convert into your familie’s "Multigenerational Legacy Home”. Seriously! Think about it:
As your REALltor and Advocate for affordable housing, I'm committed to staying on top of the latest developments and working with our local leaders to find solutions that work for our community. Let's work together to make New Braunfels a place where everyone can afford to call home y’all!
"There have been few things in my life which have had a more genial effect on my mind than the possession of a piece of land." —Harriet Martineau
"There have been few things in my life which have had a more genial effect on my mind than the possession of a piece of land." —Harriet Martineau
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