What Builders and Industry Partners 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.
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.
EPAB President's Message
INDUSTRY PERSPECTIVE
Challenges Include Slow Sales, Price Resistance
Victor Robles - EPAB President
Serving as President of the Board of Directors for the El Paso Association of Builders has offered me a clear vantage on both local and global forces reshaping our housing landscape. Today, builders and homebuyers are navigating a confluence of affordability constraints, tightening credit, and geopolitical uncertainty that ripple all the way to our region.
In the U.S. housing market, affordability remains a paramount concern. Mortgage rates have hovered near 7 percent in early 2025 after easing briefly in late 2024, upending any hopes for broadly accessible borrowing. Despite some modest moderation, rates are expected to remain in the low‑6s for much of the year—not low enough to draw out locked‑in homeowners at sub‑3 percent rates. That lock‑in effect creates chronic inventory shortages, depressing existing‑home turnover and pushing prices higher.
Executive Message
Builder Outcome may Differ in Special Session
By Ray Adauto - Executive Vice President, EPAB
The issues presented this session of the Texas Legislature will fill volumes.
Clearly, as I have said, this session was more defense than offense. What does that mean? Each session the association goes in hoping to pass priority bills, those things that over the two years gone by, we can ask for something to be included or modified to make it better. A law or ruling has the life span of whatever the State Senators or Legislators allow it. Sometimes it’s the courts that determine the lifespan, and also the need for new legislation. This year we asked for priority bills to be worked through the process, but in reality, we had to play defense more than usual. You may be asking why? The limited number of days the session is allowed every two years gets crowded with all kinds of asks, and many times a bill passed in the previous session isn’t liked by everyone, especially if someone is affected negatively. Since some surprises that bills were passed and the Governor vetoed will undoubtedly cause a special session to take place. Early indicators suggest that the special session will commence in August. We’ll keep you informed via email.
Finally I want to take this time to say goodbye to my friend Ira Batt, the Battman as he proudly proclaimed. Ira was a good soul, a friend to many and a loving husband to Irene. He was a realtor that served his customers so well, his friends always a special kind word, and a giver to his community. Ira had been lovingly taking care of Irene, and I’m sure he longed for her to get better. Like my dad I think Ira just felt that he needed to go talk to Saint Peter and ask him to give Irene help whatever that would be. I will miss this man. I know we are Blessed to have known him and Irene. God grant Ira rest. See you on the other side, my friend.
WGA Unveils Housing Plan, Includes NAHB Priorities
During its June 22-24 meeting in Santa Fe, New Mexico, the Western Governors Association (WGA) unveiled a new report focused on expanding housing to western states that includes several initiatives championed by NAHB to address the nation’s housing affordability crisis.
NAHB worked closely with the WGA in drafting the report, Building Resilient and New Affordable Developments in the West, and NAHB Chairman Buddy Hughes participated in a panel that highlighted the key findings and recommendations from the report.
Higher Rates, Affordability Dampen New Home Sales
Elevated interest rates and economic uncertainty sent more home buyers to the sidelines in May as housing affordability conditions remain challenging.
Sales of newly built single-family homes declined 13.7% in May, falling back to a seasonally adjusted annual rate of 623,000, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This was the slowest pace since October of last year, as mortgage rates averaged 6.83% in May. Sales were particularly slow in the South, with the pace of sales down 21% in May.