What Builders and Industry Partners in El Paso Need to Know

At the El Paso Association of Builders’ June general membership meeting, Patrick Tuttle—Broker from Coldwell Banker Heritage—delivered an informative presentation on the state of today’s housing market. Drawing from the latest national and local data, Tuttle outlined key trends, challenges, and opportunities that builders and industry professionals need to navigate to meet the demands of a shifting buyer landscape.

REPOSTED FROM THE BUILDERS OUTLOOK by EL PASO ASSOCIATION OF BUILDERS

By Patrick Tuttle, CRS, CLHMS • Coldwell Banker Heritage

The U.S. housing market—and El Paso in particular—is at a pivotal moment. A combination of shifting buyer demographics, rising costs, and regulatory headwinds is reshaping the real estate landscape. For builders and industry professionals, staying ahead means rethinking what we build, how we price it, and where we focus our efforts.

The Changing Face of the American Homebuyer

According to the 2024 NAR report, first-time homebuyers have dropped to just 24% of the market—a record low. Buyers are also getting older: the average first-time buyer is now 38, while repeat buyers are typically 61. This change reflects economic pressure and delayed life milestones.

Today’s buyers are also more diverse in household makeup. Married couples still lead (62%), but nearly 20% of buyers are single women. Meanwhile, a record 73% of households no longer include children under 18. These shifts point to a growing demand for flexibility in floor plans, affordability, and lifestyle-focused amenities.

El Paso's Market: A Tale of Two Metrics

El Paso has seen an 22% year-over-year increase in home sales, and while inventory has dropped, pricing has softened slightly—down 3% to an average of $316,738. Still, affordability remains a core issue. With a local median income of just under $59,000, more than half of El Paso residents are priced out of new homes, 62% of which are listed above $300,000.

Despite wages rising 12.2% over two years, they haven’t kept pace with the 65% rise in home prices and a 56% increase in borrowing costs. Add to that an 8.4% rise in consumer credit card debt, and it’s clear: affordability is the challenge of the moment.

Policy and Pressure Points

Builders aren’t just battling costs—they’re navigating a volatile regulatory landscape. Interest rates remain high, with the Federal Reserve signaling that relief may not come soon. Meanwhile, Texas homeowners are paying nearly double the national average for insurance—around $6,000 annually—with projections climbing even higher. Twenty-Five percent of homeowners were dropped by their insurers in 2024 alone.

Tariffs and stalled immigration reform are further straining the industry. Labor shortages persist, and the cost of goods remains unpredictable. These realities demand a smarter, more adaptive approach to development.

Building Smarter, Not Bigger

So, what should builders prioritize? Think smaller footprints and smarter layouts. Homes between 1,400 and 1,800 square feet—especially townhomes and multigenerational designs—are emerging as key solutions. Features like energy efficiency, smart home tech, and modest outdoor spaces are now essential, not optional.

The $250,000–$350,000 price range is a sweet spot, aligning closely with local income levels and buyer expectations. And don’t overlook single buyers: 20% of recent purchases were made by single women, while nearly three-quarters of buyers didn’t have young children at home.

Eastward Expansion & Competitive Strategy

East El Paso and Horizon City are seeing growth as families seek more house for their money. Meanwhile, the Westside’s established neighborhoods remain desirable for their convenience and amenities.

Builders should continue offering buyer incentives, agent commissions, and rate buy-downs. Educating clients about rising insurance premiums and affordability realities is more important than ever.

Eyes on the Horizon

The near future may bring more competition for fewer lots, more pricing wars, and increasingly savvy—and demanding—buyers. But that’s not all bad news. Builders who innovate, adapt, and build with today’s buyer in mind are still able to thrive.

The desire for homeownership remains strong. For many, it's not just about shelter—it's about security, stability, and independence. And that’s something worth building for.

For more information or the full presentation email patrick@patricktuttle.com

To view the Builders Outlook visit https://joom.ag/bawd