The San Antonio-New Braunfels metro area has an overall grade of B- with a composite score ranking it at the 46.2th percentile out of 50 US metros. This city's economic character is most defined by its below-average labor demand, with a composite score of 4.36, and its highly affordable cost of living, ranked at the 92nd percentile. The labor demand and cost of living metrics are the most critical in understanding the city's current economic situation, with employment growth at 0.51% and a cost of living ratio of $170/sqft to $33.17/hr.

Labor Demand

The San Antonio-New Braunfels metro area has an employment growth rate of 0.51% and a weekly hours deviation of -0.651% from its own trend, indicating a below-average labor demand. This combination signals a contraction in labor demand, rather than genuine demand expansion or survivor squeeze. The negative hours deviation suggests that the existing workforce is not experiencing an increase in workload.

Unemployment

The unemployment rate in San Antonio-New Braunfels is 4.70%, ranking at the 20th percentile, indicating a relatively loose labor market. This means that there is some slack in the market, making it easier for businesses to hire workers. However, the practical implication is that local consumer demand may be weaker due to the higher unemployment rate.

Wage Growth

The year-over-year wage growth in San Antonio-New Braunfels is 3.73%, ranking near the median at the 50th percentile. This moderate wage growth rate suggests that labor costs for employers are increasing, but not excessively. At the same time, workers are experiencing a moderate increase in purchasing power.

Cost of Living

San Antonio-New Braunfels has a cost of living ratio of $170/sqft to $33.17/hr, with a percentile rank of 92, indicating a highly affordable city. The fact that the PSF is falling by 4.0% YoY relative to wages makes it even more attractive. This high affordability score means that the city has a talent attraction advantage, as workers can be drawn without requiring significant wage premiums.

Labor Force Growth

The civilian labor force in San Antonio-New Braunfels is growing at a rate of 0.10% year-over-year, ranking near the median at the 58th percentile. This slow growth rate indicates that the labor force supply is expanding, but only marginally. The implication for hiring capacity is that businesses may face some challenges in finding new talent, but the situation is not dire.

Building Permits

The number of residential building permits in San Antonio-New Braunfels has increased by 19.22% year-over-year, ranking above average at the 72nd percentile. This significant increase in permits suggests that housing supply is expanding, which should improve affordability and accommodate a growing workforce.

Days on Market

The median days on market for homes in San Antonio-New Braunfels is 68 days, with a year-over-year change of 0.0%, ranking below average at the 28th percentile. This relatively fast market means that workers relocating to the city may face a competitive environment when searching for housing.

Office Economy

San Antonio-New Braunfels has an above-average share of professional and office workers, ranking at the 76th percentile. This deep talent pool makes the city well-suited for businesses in the tech, finance, consulting, and HQ sectors. However, it may not be as suitable for industries with more industrial or logistics-oriented economies.

The San Antonio-New Braunfels metro area offers businesses a unique combination of affordability and a growing labor force, making it an attractive location for companies looking to expand. However, the single biggest risk or constraint for decision-makers is the below-average labor demand, which may indicate a slower pace of economic growth and potentially weaker consumer demand.