Where Can San Antonio New Construction Investors Build in 2023?

San Antonio is a great market for new construction investors, but it presents some unique challenges. Read on to learn more about the city’s opportunities.

San Antonio is a great place to invest in real estate, both in existing properties and new construction. The city has consistently ranked among the fastest-growing cities in the country for years, and it has taken the top spot on the list several times. The U.S. Census Bureau ranked it at the top of the list in terms of numeric gain in 2022. The city reportedly gained over 13,000 people between 2020 and 2021. 

The market for new construction is great, but there are several factors to consider if you’re interested in investing in San Antonio ground-up construction. The city has a long and proud historical legacy, which can be a serious issue for new construction. It also has unique environmental issues. Read on to learn more about new construction in San Antonio.

Is there room for new construction in San Antonio?

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Simply put, there is plenty of space and opportunity for new construction projects in San Antonio in 2023!

Several Texas ecoregions intersect in San Antonio. The northern part of the city brings you close to the Edwards Plateau, also known as the Texas Hill Country. The Southern Texas Plains lie south and west of town. You can find both the Blackland Prairie and the Post Oak Savannah to the east.

To put this another way, it’s hilly to the north and flat to the east, south, and west. This provides many opportunities for development. The flat areas are home to many residential, commercial, industrial, and military sites. The hilly areas feature many residential and luxury commercial developments.

Where will zoning laws allow new construction in San Antonio?

San Antonio zoning laws, found in the city’s Unified Development Code, are fairly straightforward. They include several provisions that address the city’s specific concerns.

San Antonio zoning districts

Common zoning districts include the following:

  • Single-family residential (R-1 to R-6)

  • Mixed residential (RM-4 to RM-6)

  • Multi-family residential (MF-18, 25, 33, 40, 50, and 65)

  • Office (O-1 to O-2)

  • Commercial (C-1 to C-3)

  • Downtown (D)

Overlay districts modify the requirements for existing districts in certain areas, such as areas near the airport, military bases, or highways.

Special considerations for San Antonio construction

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Several overlay areas address concerns that are rather uniquely San Antonian. Historical districts (H, HS, and HE) cover areas of historical significance. The city has a long history, having been founded by Spanish missionaries in 1718. New construction that affects historical sites will inevitably meet with opposition.

The city’s water supply is also a concern. It comes from the Edwards Aquifer, which gets water from rainfall in an area known as the Edwards Recharge Zone. This zone is located in the northern part of town and extends into the Hill Country. It can be very sensitive to development, and the risk of contamination getting into the water supply is a common objection to projects in that area. As a result, the Edwards Recharge Zone District (ERZD) restricts certain land uses.

Places to build in San Antonio

The following locations in or near San Antonio have been particularly popular, have experienced significant growth, or show great potential for growth.

Pearl District

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The old Pearl Brewery, located just north of downtown, reopened as a mixed-use development in 2015 and quickly became the city’s new “it” neighborhood. The surrounding area continues to experience growth into 2022, with more development plans on the horizon.

La Cantera

Located on the northwest side of town, at the intersection of Interstate 10 and Loop 1604, this area became home to the Six Flags Fiesta Texas theme park in the early ‘90s. Its growth really began in the mid-’00s when a luxury shopping center and a resort hotel opened. The Spurs, San Antonio’s professional basketball team, recently opened an event space in La Cantera, keeping it front and center in San Antonio’s culture.

Hemisfair

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The Hemisfair area, located just to the east of downtown, was originally developed for HemisFair ‘68, an international exposition hosted by the city for the 250th anniversary of its founding. Some of the city’s best-known landmarks, such as the Tower of the Americas, were part of the original development.

Many of the HemisFair buildings have fallen into disrepair. A few have already been torn down and replaced. The area remains a source of pride for the city, though, and new development is on the way. The city has a Master Plan that includes mixed-used residential and commercial developments and the improvement of green spaces.

Castroville

Castroville is a small town with a population of about 3,000 people located twenty miles west of San Antonio. A group of settlers from Alsace, France founded the town in the 1840s. The town is therefore known for its Alsatian-style architecture.

It may also be on the verge of substantial growth, which could make it a great place for new construction investment. A new planned development, Alsatian Oaks, is in the works that could double the town’s population while remaining faithful to its cultural roots.

Get your next project funded fast!

In San Antonio, new construction investments require careful attention to more than just market conditions. Historical concerns often come into play along with environmental factors. 

The lending professionals at Capstone Capital Partners live and invest in the Central Texas area. We know the ins and outs of the new construction market in San Antonio. From application all the way through servicing, you’ll be given the personal attention and fast action you need to make a successful project.

Read more: Capstone’s Ground-Up Construction Advantages in San Antonio

Start your pre-approval by answering a few easy questions online.


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