Houses are popping up at a record pace in San Antonio

The San Antonio Express News reports:

The bubble has burst for much of the U.S., and new homes are selling at deep discounts and with builder-added incentives in an attempt to undercut the increasing competition. U.S. housing starts are expected to slow by 5 percent or 6 percent this year.

But in San Antonio, housing starts were up nearly 30 percent in the second quarter, with builders starting 5,367 homes just in April, May and June alone.

"For the San Antonio housing industry, the second quarter of 2006 was the strongest on record in nearly every category — quarterly starts, annual starts, housing inventory, finished housing inventory, developed lot inventory, lot delivery and future lots," said Randall Allsup, manager of Metrostudy's San Antonio division.

San Antonio's home construction market has been on the upswing since 1991 — an unprecedented period of time, Moore said.

"Never in my wildest dreams did I dream we could do that," Moore said. "Economically you would expect either to have a recession or a slight depression every six to eight years."

Allsup said affordability remains a key strategy for local builders. Half of San Antonio's new homes are priced below $150,000.

That's key, because for every $1,000 of home price, 3,800 families in Texas get priced out of the market, according to the Texas Association of Builders.

The triumph of San Antonio.