The San Antonio-New Braunfels metro area has an overall grade of B- with a composite score ranking it at the 45.3th 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 3.29 ranking it at the 28th percentile, and its highly affordable cost of living, with a ratio of $172/sqft to $32.72/hr and a percentile rank of 92. The labor demand metrics, including employment growth and weekly hours, signal a contraction in the job market.

Labor Demand

The employment growth rate in San Antonio-New Braunfels is +0.35% year-over-year, while weekly hours are -2.620% below the city's own trend. This combination signals a contraction in the job market, rather than genuine demand expansion or survivor squeeze. The below-average labor demand composite score of 3.29 confirms this assessment.

Unemployment

The unemployment rate in San Antonio-New Braunfels is 4.00%, ranking it at the 56th percentile, indicating a near-median level of slack in the labor market. This means that while the market is not extremely tight, it is also not overly loose, with some competition for jobs. For a business trying to hire in this city, the moderate unemployment rate suggests that finding qualified candidates may be manageable, but not extremely easy.

Wage Growth

The year-over-year wage growth rate in San Antonio-New Braunfels is +3.05%, ranking it at the 36th percentile, indicating below-average wage growth. This moderate wage growth rate suggests that labor costs for employers are rising, but not extremely quickly, while worker purchasing power is increasing, but not rapidly. As a result, businesses may face some upward pressure on wages, but it is not extreme.

Cost of Living

San Antonio-New Braunfels has a highly affordable cost of living, with a percentile rank of 92, due to its low PSF-to-earnings ratio of $172/sqft to $32.72/hr, which is falling by -5.5% year-over-year. This high affordability score means that the city has a talent attraction advantage, as workers can afford to live and work in the area without requiring large wage premiums.

Labor Force Growth

The civilian labor force in San Antonio-New Braunfels is shrinking at a rate of -0.16% year-over-year, ranking it near the median at the 48th percentile. This contraction in the labor force supply suggests that hiring capacity may be limited in the future, as the pool of available workers is not expanding.

Building Permits

The number of residential building permits in San Antonio-New Braunfels is falling by -12.26% year-over-year, ranking it at the 34th percentile, indicating a tightening of the housing supply. This decline in building permits signals that future affordability and workforce accommodation may be at risk, as the supply of new housing is not keeping pace with demand.

Days on Market

The median days on market for homes in San Antonio-New Braunfels is 53 days, with a year-over-year decline of -8.6%, ranking it at the 18th percentile. This relatively fast pace of home sales suggests that the market is competitive, and relocating workers may face challenges in finding and securing housing.

Office Economy

San Antonio-New Braunfels has a professional talent pool that ranks at the 54th percentile, indicating a near-median depth of specialized workers. This city is best suited for businesses that do not require an extremely deep knowledge-economy talent pool, such as industrial or logistics companies, and less suited for tech, finance, or consulting firms that rely on a highly specialized workforce.

The San Antonio-New Braunfels metro area offers businesses a highly affordable cost of living and a moderate unemployment rate, making it an attractive location for companies looking to reduce labor costs. However, the single biggest risk or constraint for decision-makers is the below-average labor demand and shrinking labor force supply, which may limit hiring capacity and create challenges for businesses looking to expand or relocate to the area.