Although there is marked decline compared to previous years, single-family housing development in Corpus Christi has continued amid ongoing drought, with permits for new builds planned to fill fresh neighborhood streets regularly issued — primarily in the 78414, 78415 and 78418 ZIP codes.
In one of its worst periods — only a few months ago — the water levels of Choke Canyon Reservoir dipped to about 7% capacity, and Lake Corpus Christi to about 9% capacity, according to state data.
Though levels at Choke Canyon Reservoir have virtually remained static, rains in May and June bumped Lake Corpus Christi up to nearly 30% capacity, state records show.
It amounts to a combined capacity of the region’s two main water sources at about 14%, according to city data — far improved over two months ago, but still firmly within the threshold of Stage 3 drought.
As the region struggles to build back water supply a question has been raised: Should new development come to a cease in water scarcity?
The majority of those interviewed for this story didn’t support pausing new residential development amid the drought — some pointing out that industry consumes a far greater percentage of the water, dwarfing residential consumption that has comparatively little impact on the water supply.
Some also noted potential economic concerns.
In a June 16 message to the Caller-Times, City Councilman Eric Cantu contended that the drought is over, adding that he doesn’t “believe we should use fear to stop families from building homes or growing our community.”
“We still need smart water planning, but residents should not be punished or used as scapegoats for years of failed planning,” he wrote.
Jim Klein, a former council member who keeps up with city discussions, had a different take on the question — that there shouldn’t be development of new housing under the current circumstances.
In some cases water lines are extending miles, increasing the risks of water leaks, in addition to the new meters, he said.
Putting into place a moratorium wouldn’t punish residents, Klein said — instead, it would be developers who would be impacted.
While the reservoirs levels have improved, there’s still “only a limited amount of water,” he said.
“Residents are being asked to sacrifice still more, while at the same time additional housing units have been added to the city — and all this is being done while the city’s population is not growing,” Klein said.
By the numbers
From January through May this year, the city of Corpus Christi has issued about 423 permits for single-family home construction — a timeframe in which the possibility of a water emergency became more pronounced.
That figure is down compared to the same time period in 2025, the first full year of Stage 3 drought restrictions, when about 631 single-family home construction permits were authorized, according to city data.
It also represents a drop compared to January through May 2024, a period in which 517 permits were issued. Stage 2 drought restrictions were announced in March that year.
Altogether, about 1,158 new single-family home permits were approved in 2024 and 1,186 in 2025, city records show — the bulk of all in the 78415, 78414 and 78418 ZIP codes.
Meanwhile, the city’s population has barely shifted, according to U.S. Census Bureau data — from about 316,400 in 2022 to about 317,200 in 2025, according to previous Caller-Times reporting.
The timeframe of when a water emergency could be called had at one point been believed to arrive as soon as May, according to modeling projections, but spring storms and additional groundwater supply has bumped that past December.
In recent weeks, the City Council approved the measures that would be taken should Corpus Christi enter a water emergency, including curtailment percentages and surcharges.
Under the city’s drought contingency plan, there would be in a water emergency an option to implement a moratorium on “new, additional, expanded, or increased-in-size water service connections, meters, service lines, pipeline extensions, mains, or water service facilities of any kind.”
It’s not shown as an option under any other stages of drought.
Should the city seek a moratorium on property development in a water emergency, it could only be in effect for six months and every two years, according to statute.
The economy
Potentially stymieing housing development would pose a risk to the region’s well-being, some developers and builders said.
Coastal Bend builders “are continuing to sell houses because people are moving and there’s a need for more housing stock, especially at the lower price points, like there is all over the state,” said Scott Norman, CEO of the Texas Association of Builders.
A moratorium, he said, could see an additional slowing of the economy in the housing industry – “not just the builders, but all the suppliers and tradespeople, mortgage lenders, bankers, and everybody else that’s in the housing world.”
There are other reasons than drought that could lead to fewer housing permits, developer Moses Mostaghasi said, including war, contractor availability, inflation, interest rates and limitations on materials.
That said, negative press has had an impact, he told the Caller-Times.
“Everywhere I’ve gone, anybody I’ve talked to in the business world, or other city officials in other cities, the first question they ask is, ‘Is Corpus out of water?’” Mostaghasi said.
There are ways to conserve and be “able to develop better, build better, conserve while still performing,” he said, adding that producing a house involves about 5,000 gallons of water use.
Most households are currently using between 4,500 gallons of water to 5,000 gallons of water per month, according to city data.
“If you shut down development because of the drought or trigger something prematurely, it causes a ripple effect in the economy as far as jobs, taxes, property taxes … which then affects the city budget,” Mostaghasi said. “Whether it’s residential building development or commercial building — that’s always needed for a city to sustain.”
Several of the top developers of neighborhoods sprouting on the edges of the city, or large-scale developments staked out for hundreds of homes, either declined comment or did not respond to the Caller-Times’ requests for interviews.
The housing market
Meanwhile, home-buying in the city may not have been significantly affected, according to real estate experts.
Realtor Demetria Smith said that when she does get questions about the situation, they tend to be “shock-driven,” noting media coverage.
She provides potential buyers with information about drought restrictions, she said, such as prohibitions on lawn-watering.
“I just point them to the facts — ‘hey, we are in a drought; we’re at Level 3. … These are the do’s and don’ts at this time,’” Smith said, adding that she mentions “that the city and the state are actively working on getting a resolution for this.”
In the end, “buyers should just be well informed,” she said.
“Corpus had been through rougher things — we’ve been through hurricanes, we’ve been through jobs going down. … We’re going to bounce back from this,” Smith said.
The Coastal Bend Association of Realtors is analyzing data, said CEO Brian Morales, but it hasn’t found changes that would be attributed directly to the drought, and “a lot of our trends are still mirroring pretty closely to what we’re seeing across the state” in terms of closed sales.
The association has created what he referred to as a “water restriction in drought disclosure form,” he said, that agents can use to break down city ordinances and the possibilities that water use could be restricted.
Although there hasn’t been evidence in market swings and statistics that would be attributable to water scarcity, he has heard some anecdotal stories from brokers and real estate agents that homebuyers have raised concerns related to the drought, Morales said.
“What we have found, at least, again, in these anecdotal stories, is that people may have some concerns, but it isn’t keeping them from purchasing a home,” he said. “But it is a factor that, I think, is in their minds as we’re going through this.”
Kirsten Crow covers city government and water news. Have a story idea? Contact her at kirsten.crow@caller.com.
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This article originally appeared on Corpus Christi Caller Times: Should new neighborhoods be built in Corpus Christi drought?
Reporting by Kirsten Crow, Corpus Christi Caller Times / Corpus Christi Caller Times
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By Kirsten Crow, Corpus Christi Caller Times | USA TODAY Network
