A new study commissioned by a broad cross-section of those involved in the real estate development industry confirms what has already been widely reported in recent years: That section of the San Antonio economy is booming, infusing jobs and tax dollars into the community.
Real estate development contributes $35.7 billion in annual economic activity, a 10 percent jump from 2015 to 2017, according to the study. The sector also is home to 133,500 jobs, the study found.
The Responsible Growth Alliance (RGA), a group of entities such as the Real Estate Council of San Antonio, San Antonio Apartment Association, Associated Builders & Contractors, Professional Engineers in Private Practice, The Greater San Antonio Builders Association and the American Council of Engineering Companies hired Austin-based public policy consulting firm TXP to do the study.
It is the fifth time the study has been done, according to RGA spokesman Eric Whittington.
“It’s easy to see all the new buildings and development in every corner of our city,” said RGA President Scott Farrimond, a local attorney who grew up in San Antonio. “What you might not always see are the tens of thousands of your neighbors whose work is behind each new project – the concrete contractors, electricians, architects, bankers, engineers, plumbers, and so many more whose skills are vital to San Antonio’s thriving economy.”
Income for employees in the real estate development sector jumped from $5.9 billion in 2015 to $6.6 billion in 2017, according to the study. The study also found the industry produced $232.8 million in local tax revenue in 2017, a 13.3 percent jump from two years earlier.
The study estimates the City of San Antonio received $90 million in tax revenue from sales and property taxes, and Bexar County took in approximately $10 million.
My question is: How much in City incentives including property tax abatements were given in those years studied, and how long will those property tax abatements cost us in the years to come? How is the loss from property tax abatements made up?
I assume the information re. income for the real estate sector may include the commissions, etc., for the many city incentivized completed developments sold for tens of millions in profit (along with property tax abatements that will stay with the property for up to 35 years)
Below are figures re. property tax abatements for a few of the years in this story. What are the real costs to the taxpayers for “all” of the incentives coming out of our pockets?
Appraisal Year Entity Property Count Exemption Amount
2015 CITY OF SAN ANTONIO 78 $ 1,007,284,256
2016 CITY OF SAN ANTONIO 74 $ 1,127, 973,188
2017 CITY OF SAN ANTONIO 35 $ 919,407,088
2018 CITY OF SAN ANTONIO 22 $ 676,876,531