San Antonio, Texas, is no stranger to change. Over the years, the city has seen tremendous growth, becoming one of the fastest-growing metros in the country.
While the real estate market has its ups and downs, San Antonio's market continues to be resilient, providing ample opportunities for both homebuyers and investors in 2024.
Despite the current fluctuations in the housing market, the city's economic stability, affordability, and vibrant culture make it an attractive location for prospective homeowners and investors alike.
The State of the San Antonio Real Estate Market in 2024
San Antonio has enjoyed significant real estate growth in recent years, with home prices steadily increasing year-over-year. However, the market is currently experiencing some cooling off after the record highs seen in 2020 and 2021. Home prices are no longer climbing at the same fast pace, and more homes are staying on the market for longer periods.
What is San Antonio’s Cost of Living?
San Antonio, Texas, is a vibrant city with a rich cultural heritage and an affordable cost of living compared to many other large U.S. cities. As noted by Expatistan, the cost of living in San Antonio is 5.9% below the national average, which makes it an appealing choice for people seeking a more budget-friendly lifestyle.
Housing is one of the key factors that contribute to the city's affordability. According to Forbes Advisor, San Antonio’s housing costs are 40.11% lower than the national average, offering a variety of affordable options for both renters and homebuyers.
Another important consideration is transportation.
San Antonio boasts a well-established public transportation network, which includes buses and light rail, providing residents with an efficient and cost-effective way to navigate the city without the expense of owning a car. As reported by 2 College Brothers, transportation costs in San Antonio are 8.8% below the national average, helping residents save on gas and vehicle maintenance.
Key Market Trends for 2024:
Median Home Price: $330,000
Price Growth: 4.5% increase year-over-year
Average Days on Market: 45 days
Interest Rates: Between 6.5% and 7.0% for 30-year fixed-rate mortgages
The shift in the market presents an excellent opportunity for buyers, as home prices are leveling off, making homes more accessible. While some sellers may be adjusting their expectations, the overall market in San Antonio remains stable, especially given the city's economic strength and population growth.
San Antonio’s Economic Strength
One of the primary reasons for San Antonio’s resilient real estate market is the city's thriving economy. The city has diversified its economy over the years, ensuring that it isn’t overly reliant on one sector. San Antonio benefits from industries such as healthcare, military, technology, tourism, and manufacturing.
As of 2024, San Antonio's unemployment rate is 3.1%, lower than the national average of 4.1%. This economic stability is a major driver of the housing market, as the city continues to attract new residents. The consistent influx of people looking for employment and a better quality of life ensures that the demand for housing remains strong.
How Affordable is San Antonio?
One of the most attractive features of San Antonio is its affordability compared to other major Texas cities like Austin, Dallas, and Houston. Even though home prices in San Antonio have been on the rise, they are still significantly lower than in many of Texas' largest cities, making it a more budget-friendly option for both buyers and renters.
For example, the median home price in Austin, Texas, in 2024 is approximately $450,000, which is about 36% higher than San Antonio. For first-time homebuyers or families looking for more space at a more affordable price, San Antonio presents an ideal solution.
Key Facts About San Antonio’s Housing Affordability
Median Home Price: $330,000
Rent: The average rent for a two-bedroom apartment in San Antonio is approximately $1,350 per month.
Cost of Living: San Antonio’s cost of living is 4% lower than the national average.
This affordability factor has attracted many people, particularly young professionals, families, and retirees looking for a high quality of life without the steep costs associated with larger metropolitan areas.
Are there Real Estate Investment Opportunities in San Antonio?
San Antonio’s real estate market isn’t just great for buyers looking for a new home—it’s also a promising market for real estate investors. Whether you’re interested in rental properties, commercial spaces, or flipping houses, the city offers a wide range of investment opportunities.
Types of Investment Opportunities in San Antonio:
Rental Properties: The demand for rental properties remains high, especially in areas close to military bases like Fort Sam Houston and Lackland Air Force Base.
Commercial Real Estate: San Antonio’s growing economy makes it an attractive place for businesses, resulting in a demand for commercial real estate, including office spaces, retail properties, and warehouses.
Fix-and-Flip Properties: With several up-and-coming neighborhoods, investors have the opportunity to buy properties at lower prices, renovate them, and sell for a profit.
“Investing in San Antonio real estate can yield strong returns, especially in the rental and commercial sectors,” explains Rachel Williams, Property Investment Specialist at Capital City Investments.
Investment Hotspots:
Alamo Heights: A prestigious neighborhood with a high demand for rental properties and long-term growth potential.
Stone Oak: A growing suburban area known for its family-friendly atmosphere and steady price increases.
Medical Center Area: A hub for healthcare professionals with a steady demand for rental properties.
The steady growth in both residential and commercial real estate sectors makes San Antonio a prime location for savvy investors looking for long-term stability.
What are the Best Neighborhoods in San Antonio?
While San Antonio’s real estate market remains steady overall, there are certain neighborhoods that are seeing rapid growth and development. Here are a few key areas that are poised for continued growth:
San Antonio Neighborhoods to Watch
| Neighborhood | Median Home Price | Key Features |
|---|---|---|
| Alamo Heights | $700,000 | Historic homes, highly sought-after location |
| Stone Oak | $400,000 | Family-friendly, excellent schools, parks |
| Medical Center Area | $350,000 | Proximity to hospitals, rental demand |
| Southtown | $425,000 | Arts district, restaurants, trendy atmosphere |
| Far West Side | $275,000 | Affordable, rapidly developing, suburban feel |
These neighborhoods have attracted homebuyers looking for proximity to major employers, good schools, and recreational amenities. As San Antonio continues to expand, these areas are likely to experience continued growth, making them strong contenders for investment opportunities.
The Impact of Rising Interest Rates
One challenge that many buyers face in the current market is rising interest rates. In 2024, interest rates for a 30-year mortgage are hovering between 6.5% and 7%. While these rates are still historically low, they are higher than what many buyers are accustomed to, especially after the historically low rates seen in the past few years.
For potential buyers, this means higher monthly mortgage payments and, in some cases, a reduced budget for purchasing homes. However, this doesn’t necessarily mean you should wait to buy. Real estate markets operate on cycles, and the current rate increase may be temporary. Additionally, as home prices level out, buying now could be a great opportunity for long-term investment.
Tips for Buyers:
Buy Now, Refinance Later: If you're concerned about interest rates, consider purchasing now and refinancing when rates drop.
Shop Around for Lenders: Different lenders may offer different rates, so make sure to get quotes from multiple sources.
Consider Adjustable-Rate Mortgages: If you're planning on staying in your home for a shorter period, an adjustable-rate mortgage could be a good option.
“While interest rates are higher than they’ve been in recent years, the long-term outlook for San Antonio’s real estate market remains positive. Buyers should focus on finding homes that align with their long-term goals,” advises Mike Williams, Senior Mortgage Advisor at Prime Mortgage Solutions.
What Will the San Antonio Real Estate Market Look Like in 2025?
Looking ahead, the real estate market in San Antonio is expected to remain stable with moderate growth. Despite the challenges posed by rising interest rates, the city’s economic stability, affordable housing, and growing demand for real estate make it an attractive option for buyers, sellers, and investors.
Market Outlook for 2025:
Price Growth: Prices are expected to increase at a slower pace, around 3-4% annually.
Demand: Demand for homes will remain strong, particularly in suburban neighborhoods and areas with good schools.
Rental Market: With more people relocating to San Antonio, rental demand will continue to increase, making it an attractive market for landlords.
San Antonio’s real estate market may experience some short-term fluctuations, but the long-term outlook remains promising. With a diverse economy, a growing population, and ample opportunities for investors, San Antonio is well-positioned for continued growth in the years to come.
The Bottom Line
In conclusion, the San Antonio real estate market in 2024 presents a unique opportunity for both buyers and investors. With its affordability, strong economic foundation, and diverse housing options, it stands out as a resilient and promising market.
Whether you're a first-time homebuyer, an investor, or a family looking for a new home, San Antonio offers a variety of neighborhoods that cater to different needs and preferences.
By staying informed about the latest trends and working with local experts, you can confidently navigate this dynamic market and make decisions that align with your goals for the future.
LRG agents will help and guide you through all your home needs. Contact us at 210-879-8220 or message us on our website. You can also follow us or message us on Instagram and Facebook! Also, check out our TikTok!
Frequently Asked Questions
What is the median home price in San Antonio?
As of 2024, the median home price in San Antonio is approximately $330,000, making it a more affordable option compared to cities like Austin.
How long do homes stay on the market in San Antonio?
Homes in San Antonio typically stay on the market for an average of 45 days, though this can vary depending on the neighborhood and home price.
What factors are driving growth in San Antonio?
San Antonio’s real estate growth is driven by a strong economy, diverse industries, and a growing population. Key sectors include healthcare, military, and tech.
Is San Antonio a good place for first-time homebuyers?
Yes, San Antonio is an excellent place for first-time homebuyers due to its affordability, variety of housing options, and strong job market.
How does San Antonio compare to Austin in terms of real estate prices?
San Antonio is more affordable than Austin, with a median home price in San Antonio significantly lower than Austin’s, making it an attractive choice for many buyers.
What are the most popular neighborhoods in San Antonio for families?
Popular neighborhoods for families in San Antonio include Stone Oak, Alamo Heights, and the Medical Center area. These areas offer good schools, parks, and a family-friendly environment.
Are there opportunities for real estate investment in San Antonio?
Yes, with the city’s growing population and affordable home prices, San Antonio offers great opportunities for real estate investors. Rental properties, in particular, are in demand due to the city’s expanding job market.
What is the job market like in San Antonio?
San Antonio boasts a strong and diverse job market, particularly in sectors like healthcare, military, tech, and tourism. The city’s unemployment rate is consistently lower than the national average, attracting new residents and contributing to real estate demand.
