San Antonio Sees Home Price Drops in 2025
San Antonio’s housing market is shifting, catching the eye of buyers, sellers, and investors.
With a 3.7% drop in median home prices—the steepest among major U.S. metros—the city’s affordability is more appealing than ever. Driven by rising inventory, high mortgage rates, and cautious buyers, this decline signals a buyer’s market.
Whether you’re hunting for a deal, trying to sell, or eyeing investment opportunities, understanding these changes is key. This article dives into why prices are falling, how San Antonio compares to other cities, and actionable steps to navigate the market, backed by data and expert insights.
Why Are Home Prices Dropping in San Antonio?
The 3.7% drop in San Antonio’s median home-sale price is a big deal. According to recent data, this decline is the sharpest among major U.S. metropolitan areas, with the median sale price falling to around $289,995 in early 2025, down from $301,000 a year earlier. So, what’s behind this shift?
Several factors are at play:
Rising Inventory: San Antonio’s housing market has seen an 18% surge in active listings year-over-year, giving buyers more options and bargaining power. More homes on the market mean sellers are competing harder, often lowering prices to attract buyers.
High Mortgage Rates: With 30-year fixed mortgage rates hovering between 6.5% and 7%, many buyers are priced out or hesitant to commit. This reluctance has cooled demand, putting downward pressure on prices.
Economic Uncertainty: Fears of a potential recession and job market instability are making buyers cautious. First-time buyers, in particular, are holding off, worried about long-term financial commitments.
New Construction Surge: San Antonio has seen a boom in new home construction, with builders starting 4,080 homes in Q4 2024, up from 3,588 the previous year. This influx of new homes is outpacing demand, further softening prices.
These factors combined have turned San Antonio into a buyer’s market, where supply is outstripping demand, and sellers are feeling the pinch.
How Does San Antonio’s Decline Compare Nationally?
To put San Antonio’s 3.7% price drop in perspective, let’s look at how it stacks up against other major U.S. metros. While the national median home-sale price rose 2.6% year-over-year to $389,400, several Sun Belt cities, particularly in Texas and Florida, are seeing declines. Here’s a quick comparison:
| Metro Area | Median Home Price (Feb 2025) | Year-over-Year Change |
|---|---|---|
| San Antonio, TX | $289,995 | -3.7% |
| Austin, TX | $450,000 | -4.6% |
| Tampa, FL | $375,000 | -4.5% |
| Houston, TX | $325,000 | -1.2% |
| Dallas, TX | $350,000 | -0.8% |
| San Jose, CA | $1,200,000 | +5.5% |
San Antonio’s decline is notable, but it’s not alone. Austin leads with a 4.6% drop, followed closely by Tampa. Meanwhile, cities like San Jose are still seeing price growth, driven by tight inventory and high demand.
San Antonio’s affordability, with a median price of $289,995, remains a draw compared to pricier metros like Austin or Dallas.
What’s Driving Reduced Buyer Demand?
Buyer demand in San Antonio has taken a hit, and it’s not hard to see why. Here’s a closer look at the key drivers:
High Mortgage Rates and Affordability Challenges
Mortgage rates have been a major hurdle. Since late 2022, rates for a 30-year fixed mortgage have fluctuated between 6% and 7%, a sharp increase from the 3% lows of 2020.
For a median-priced home in San Antonio ($289,995), a 7% mortgage rate translates to a monthly payment of about $1,545 (assuming a 20% down payment). That’s a hefty chunk of income for many households, eating up 35.3% of the median household income—well above the 30% threshold considered affordable.
Economic Uncertainty and Buyer Hesitancy
Economic jitters are also keeping buyers on the sidelines. With talks of a potential recession and tariffs looming, many are hesitant to make big purchases. Redfin agent Venus Martinez noted, “A lot of buyers, especially first-timers, are backing off because they’re nervous about a potential recession.” This caution is reflected in the data: pending home sales in San Antonio dropped 7% year-over-year in March 2025.
Shift to Rentals
As buying becomes less attainable, many are turning to renting. San Antonio’s rental market remains strong, with an average rent of $1,289 for apartments and $2,001 for single-family homes. This shift is partly due to affordability challenges, with potential buyers opting to rent while waiting for better market conditions.
What Does This Mean for Homebuyers?
If you’re looking to buy in San Antonio, now could be a golden opportunity. Here’s why:
More Choices: With active listings up 18% and homes spending an average of 75 days on the market, you’ve got more options and time to shop around.
Negotiation Power: Sellers are slashing prices, with single-family homes selling for 10.5% below asking price in March 2025. This gives buyers leverage to negotiate better deals.
Affordability: San Antonio’s median home price of $289,995 is well below other Texas metros like Austin ($450,000) or Dallas ($350,000), making it a budget-friendly option.
Tips for Buyers
Get Preapproved: A preapproval letter strengthens your offer and helps you move quickly in a competitive neighborhood. Explore San Antonio’s Homeownership Incentive Programs for down payment assistance to make your purchase more affordable.
Focus on Emerging Areas: Submarkets like Alamo Ranch and Far West San Antonio are seeing new developments in the $250,000–$350,000 range, offering value and growth potential.
Work with a Local Expert: A realtor familiar with San Antonio’s neighborhoods can help you find deals in areas like Stone Oak or Alamo Heights, where demand remains strong.
What Does This Mean for Sellers?
For sellers, the market is tougher but not hopeless. Homes are taking longer to sell—75 days on average compared to 58 days nationally—and price cuts are common. Here’s how to navigate:
Strategies for Sellers
Price Realistically: With buyers holding the upper hand, overpricing can lead to your home sitting on the market. Check recent sales in your area on Zillow’s market data to set a competitive price.
Highlight Unique Features: Emphasize upgrades, energy efficiency, or proximity to amenities like schools or downtown San Antonio to stand out.
Consider Timing: Late spring and summer (June–July) are peak selling seasons in San Antonio, with higher demand and median sale prices.
What’s the Outlook for San Antonio’s Housing Market?
Looking ahead, San Antonio’s market is likely to remain buyer-friendly through 2025. Zillow forecasts a 4% price drop over the next 12 months, driven by rising inventory and persistent affordability challenges. However, the city’s strong population growth—San Antonio gained more residents than any U.S. city in 2023—provides underlying support for long-term demand.
Factors to Watch
Mortgage Rates: If rates dip below 6%, buyer demand could pick up, stabilizing prices. Track rate trends with the Federal Reserve’s economic updates.
Economic Stability: Job growth and economic confidence will play a big role. San Antonio’s diverse economy, driven by military, healthcare, and tourism, offers some resilience.
New Construction: While new homes are adding to supply, a slowdown in construction could tighten inventory and slow price declines.
Here’s a quick snapshot of key market stats:
| Metric | Value (March 2025) | Year-over-Year Change |
|---|---|---|
| Median Home Price | $289,995 | -3.7% |
| Active Listings | 14,716 | +18% |
| Days on Market | 75 days | +12 days |
| Median Rent (Single-Family) | $2,001 | 0% |
| Pending Sales | ~3,000 | -7% |
How San Antonio’s Market Compares to Other Texas Cities
San Antonio isn’t the only Texas city feeling the pinch. Here’s how it compares to other major metros:
Austin: Facing a 4.6% price drop, Austin’s market is cooling faster, but its higher median price ($450,000) makes it less affordable.
Houston: A 1.2% price decline and a 3% drop in single-family home sales reflect similar trends, though Houston’s market is slightly tighter.
Dallas: With a 0.8% price drop, Dallas is seeing less severe declines but faces similar issues with high rates and buyer hesitancy.
San Antonio’s affordability and slower pace of decline make it a standout for budget-conscious buyers and investors looking for cash-flow opportunities.
The Bottom Line
San Antonio’s housing market is at a turning point, with falling prices creating opportunities for savvy buyers and challenges for sellers. The 3.7% price drop, driven by high rates and rising inventory, makes now a great time to negotiate a deal or explore rentals.
Sellers can succeed by pricing smartly and timing their sale for peak seasons. Looking ahead, Zillow’s predicted 4% decline in 2025 suggests continued affordability, but population growth could stabilize the market.
Stay informed with local data and expert advice to make the most of San Antonio’s evolving real estate landscape.
Frequently Asked Questions
Why are home prices dropping in San Antonio?
Prices are falling due to an 18% increase in active listings, high mortgage rates (6.5%–7%), and reduced buyer demand amid economic uncertainty.
Is now a good time to buy a home in San Antonio?
Yes, buyers have more choices and negotiation power. The median price of $289,995 is affordable, and homes are staying on the market longer (75 days).
Should I sell my home in San Antonio now?
It’s a challenging market for sellers, with homes selling 10.5% below asking price. Price competitively and consider waiting until June–July for peak demand.
How long are homes staying on the market?
Homes in San Antonio spend a median of 75 days on the market, much slower than the national average of 58 days.
Are rental prices also dropping in San Antonio?
No, rental prices remain stable, with single-family homes averaging $2,001 and apartments at $1,289, driven by strong rental demand.
Will home prices continue to drop in 2025?
Zillow predicts a 4% decline through 2025, but population growth and potential rate drops could stabilize prices later in the year.
How does San Antonio compare to other Texas cities?
San Antonio’s 3.7% price drop is less severe than Austin’s 4.6% but steeper than Dallas (0.8%) and Houston (1.2%), with better affordability.
Can first-time buyers afford homes in San Antonio?
Yes, with a median price of $289,995 and down payment assistance from the Texas State Affordable Housing Corporation, San Antonio is accessible.
Are investors still active in San Antonio?
Investors are active, especially in submarkets like Alamo Ranch, drawn by affordability and strong rental demand.
What’s the best strategy for buyers in this market?
Get preapproved, focus on emerging neighborhoods, and negotiate aggressively, as sellers are more willing to lower prices.
Taking Action in San Antonio’s Housing Market
Whether you’re a buyer, seller, or investor, San Antonio’s shifting market offers opportunities and challenges. Buyers can capitalize on lower prices and increased inventory, while sellers need to price strategically and highlight their home’s value. Investors should explore rental opportunities, given the stable rental market and affordability.
For more insights, visit the San Antonio Board of Realtors’ market reports for local data or check Freddie Mac’s mortgage rate insights for financing trends. If you’re ready to act, connect with a local realtor or explore financing options through the U.S. Department of Housing and Urban Development’s resources. San Antonio’s market is evolving—stay informed and make your move!
