The National Association of Realtors (NAR) recently named San Antonio one of the top 10 “hidden gem” housing markets of 2022. It's also one of the fastest-growing cities in the United States. With its low tax rates and low cost of living, it's no surprise that San Antonio is so popular.
So, what’s going on with San Antonio’s booming real estate market? And how can you capitalize on these trends as a home buyer, seller, or investor? Keep reading to find out.
Home Prices on the Rise
As of April 2022, home values in San Antonio had increased 20.5% year over year. Over the past five years, they have risen an impressive 59%. According to data from the San Antonio Board of Realtors, the typical home value in San Antonio was $326,500 in March. Despite these rising home prices, San Antonio is still considered affordable. That's especially true compared to other major metros in Texas. The typical home value in Austin, for example, was $624,000.
The Dominion is the most expensive San Antonio neighborhood with its average list price of $799,900. On the opposite end of the spectrum is Highland Hills. In this neighborhood, the median list price for a home is just $170,000. Leon Valley, Lafayette Place, Live Oak, China Grove, Seguin, and Windcrest are also affordable neighborhoods.
Strong Seller’s Market
The San Antonio area currently has just 1.6 months of inventory available. This limited supply creates more competition, higher prices, and quicker sales.
If the supply rises to more than six months of inventory, San Antonio may become a buyer's market. Experts don't predict this to happen anytime soon, though.
Attractive Renter's Market
Renter-occupied households account for 39% of all occupied residences in the San Antonio metro area. According to the San Antonio Business Journal, San Antonio also has one of the most stable rental markets in the United States.
Over the past three years, rent for a three-bedroom home in San Antonio rose 21%. The median rent for a three-bedroom home is $1,700. In Forest Crest, King William, and Downtown San Antonio, though, average rents range between $3,169 and $4,500 per month.
Due to the city’s large military population, the San Antonio real estate market is a great place for rental investments. This group will likely continue to rent, as many don't know where their next assignment will be.
What's Next for the San Antonio Real Estate Market?
Over the next decade, experts expect the San Antonio economy to grow by 39.6%, faster than the national average. This will result in low unemployment, significant population growth, and excellent potential for real estate investing.
The key to capitalizing on San Antonio's growth is to find opportunities before your competitors do. A smart tool like PropStream provides complete data on all property types — not just the ones on the market.
Take advantage of a free 7-day trial for PropStream today to find your next client or investment property in San Antonio.