Construction Costs San Antonio

Overview of Construction Economics in San Antonio (2024–2025)

San Antonio’s construction market remains robust, with total construction starts projected at approximately $11.5 billion in 2025—slightly below the record pace of 2024—and expected to rise to around $12.6 billion in 2026, indicating a stabilizing yet growing market environment. Non‑residential, residential, and infrastructure sectors all contribute significantly to this activity. 

Residential starts in 2025 are estimated at $4.1 billion, with single‑family and multifamily segments both expanding into 2026. Non‑building construction, including highways and public works, is also strong, led by nearly $2 billion in highway and bridge contracts. 

This sustained activity reflects San Antonio’s continued population growth, economic diversification, and infrastructure investment. 

Cost Drivers and Trends for Contractors & Construction Managers

Construction Cost Ranges (2024–2025)

San Antonio remains one of the more cost‑effective major Texas metros, though construction costs are rising steadily. Commercial and multifamily projects are seeing moderate increases, while industrial and office/retail sectors remain competitive compared to Austin or Dallas–Fort Worth. 

Labor Cost Trends

Skilled labor remains in high demand across Texas, including San Antonio. Wage rates for trades such as electricians, plumbers, framers, and concrete workers are increasing—typically in the mid‑single‑digit to low‑double‑digit percentage range year‑over‑year—driven by tight labor supply and strong project pipelines. 

Equipment Hire Costs

Equipment rental rates (daily, weekly, monthly) are influenced by regional demand, project duration, and availability. While San Antonio benefits from relatively stable supply chains, contractors should anticipate moderate upward pressure on rates, especially for specialized or heavy equipment during peak activity periods. 

Local Cost Drivers

• Permitting & Regulatory Fees: Permit timelines and fees vary by project type and location; early coordination with city planning and permitting offices can help manage schedule and cost risk.
• Site Access & Logistics: Urban infill or constrained sites may require additional staging, traffic control, or off‑hour work, increasing indirect costs.
• Material Delivery & Supply Chain: San Antonio’s central location supports good material access, but tariffs on imported materials (e.g., lumber, gypsum, steel) and supply chain disruptions can elevate costs.

General City Context

San Antonio continues to rank among the top U.S. cities for new home construction, reflecting strong housing demand. Mixed‑use developments and infrastructure projects—such as major highway interchanges and lifestyle districts—are shaping the construction landscape. These trends support a dynamic environment for contractors, with opportunities across residential, commercial, and public sectors.