Let’s take a look at the current state of the San Antonio real estate market amid the coronavirus pandemic. Then we’ll discuss the investment opportunities in San Antonio for real estate investors. San Antonio is one of the best places to visit and has one of the fastest-growing economies in the country, driven by sectors such as military, tourism, health care, and insurance. San Antonio housing prices rose by around 5% in the last year due to strong demand.
Before this pandemic hit the nation, even though the San Antonio housing market had cooled off a bit, the home values were expected to climb but at a slower pace in 2020. Realtor.com had predicted that prices for single-family homes in the San Antonio metro area will climb by just 0.8 percent in 2020. According to the latest MLS report by “SABOR,” since the start of 2020, there have been 9,089 active listings and 16,840 total home sales in the city with an average of 64 days on the market.
This further demonstrates the ongoing supply of homes as they sell. In June, San Antonio’s average price of a home increased by 3% as compared to June 2019. Year-to-date, the average price has shown an increase of 5% to $278,395. The reports showed 3,823 homes sold in San Antonio during the month of June, an increase of 14 percent. The month of June shows an increase in all four categories indicating stability in the market. The complete up-to-date San Antonio housing market report is given below.
A Quick San Antonio Real Estate Investment Perspective: There are a number of reasons to consider investing in the San Antonio real estate. There is an increase in affordability due to an increase in development. San Antonio is a major city in south-central Texas with a rich colonial heritage but it exhibits a low cost of living which is about 3.3% lower than the US. Texas rivals California and New York in terms of population and economic clout.
Top Reasons to Invest In The San Antonio Real Estate Market
Strong & diverse economy.
Unemployment rate below 4%.
A well educated productive workforce.
#2 recession-proof city. (Forbes)
Lower business & lifestyle costs than others.
Amazingly affordable real estate for investment.
Single-family, duplexes, fourplexes.
3-year appreciation forecast of 9.1%.
Around 45% of the residents are renters.
The growing fuels the rental demand.
San Antonio is also known for its low cost of living.
The Lone Star State is also attracting people from those states and the rest of the country, though it gets more than its fair share of immigrants from other countries, too. Is it going to be one of the hottest real estate markets for investors in 2020 & 2021? Rising prices may keep some from participating in the market, high property taxes can deter the expected growth, but the reality is San Antonio continues to rank as one of the best places to live across the country.
There is a lot of construction activity going on especially in the entry-level single-family homes to satisfy the principals of supply and demand. This will bring in more number of small prospective buyers looking for homes under $200,000. These are just some of the highlights that make San Antonio a great place to live and invest in real estate. The list can go on and on.
Let us discuss some more housing market trends which make investing in San Antonio real estate potentially profitable for new investors in the long term. Analyzing real estate data from multiple sources gives us a much broader perspective of the direction in which a market is moving.
San Antonio Housing Market Prices & Trends 2020
We shall now discuss some of the most recent housing trends in the San Antonio area and compare it with the past couple of years. We shall mainly discuss median home prices, inventory, economy, growth, and neighborhoods, which will help you understand the way the local real estate market moves in this region. San Antonio is a minimally walkable city in Bexar County with a population of approximately 1,326,420 people. San Antonio has been one of the hottest real estate markets in the country for many years.
Let’s first take a look at some of the historical data. According to a report published in Sanantoniotxforsale.com, 2018 was a fantastic year for San Antonio real estate market. One of the largest driving forces behind the thriving real estate market is the growing economy. The San Antonio area is a hotbed for new jobs and not just any jobs. According to KSAT12, job growth in the region is specifically focused within several pivotal sectors, including technology and cybersecurity.
Despite challenges with low inventory levels, the San Antonio real estate market shattered records and continued to perform well in 2019. As per the report released by the San Antonio Board of Realtors in Dec 2019:
34,430 single-family homes were sold in 2019, representing a 7% year-over-year increase.
The average home price was just over $270,275, which also was a 4% year-over-year increase.
The median home price was about $233,800, which was a 4% year-over-year increase.
Courtesy: San Antonio Board of REALTORS®
San Antonio Housing Market 2020 Before Cornovairus Pandemic
Total home sales showed modest increases in March with sales rising four percent for a total of 3,013 in the San Antonio area. This is according to the Multiple Listing Service Report from the San Antonio Board of REALTORS® (SABOR) which reports on all areas contained within the MLS—including Bexar, Atascosa, Frio, Karnes, Kendall, LaSalle, McMullen, Medina and Wilson counties.
Both the average and median sales prices climbed six percent, with the average price reported at $277,256 and the median at $240,000. Months of inventory continued to favor sellers with only 3.2 months available. Heading into April, the month ended with 2,917 sales still pending.
Compared with the rest of Texas, Bexar County remained affordable and continues to fare strongly. Home sales in the county increased 0.4 percent while the average sales price increased seven percent to $265,665.
Screenshot Courtesy: SABOR
San Antonio Housing Market 2020 Amid COVID-19 Pandemic
According to Zillow, the market has cooled off. San Antonio’s appreciation rate in the latest quarter (-0.12%) has been one of the lowest in the U.S. It equates to an annual appreciation rate of -0.48%, as per Neighborhoodscout’s statistics.
April’s housing market report from SABOR showed that real estate transactions did get slightly impacted by the pandemic. However, home buying and selling were still on the move, even amid difficult times. Total home sales dropped by 8% from April 2019. Also indicated was a shift in days on the market to 61 days on average, down one day from this time last year.
There were 9,498 active listings in San Antonio, a slight increase from March, with 3,543 of those being new listings. Pending sales for the month were at 2,652. Texas’ real estate market showed a decrease in home sales at 17.4% for 24,795 homes sold, as compared to San Antonio which only saw an 8% decrease for 2,748 homes sold.
Housing Trends in May showed that Bexar County was faring the best of any other major county in Texas, a positive indication for San Antonio’s housing market. In a year-over-year comparison for May, Bexar, Harris, Travis, and Dallas Counties showed a decrease in sales compared to May 2019. However, in a county-by-county comparison, Bexar County’s decrease in home sales was significantly less than the other Texas counties – only a 13.4% decrease in sales from May 2020 vs. May 2019.
A total of 2,869 homes sold in San Antonio. While this displays a year-over-year comparison decrease (compared to 3,590 in May 2019), it is an increase over April’s sales of 2,748 homes. Compared to May 2019, San Antonio’s average price of a home increased by 3%. Year-to-date, the average price showed an increase of 5% to $274,645.
Below is the latest monthly report for June released on July 14, 2020, by the San Antonio Board of REALTORS®. Home buying activity this June surpassed the figures of last year’s June—displaying a positive outlook for the housing market in San Antonio and the surrounding area. There was an increase in all four categories indicating stability in the market.
Closed sales increased by 14 percent year-over-year.
Compared to June 2019, San Antonio’s average price of a home increased by 3%.
Year-to-date, the average price has shown an increase of 5% to $278,395.
In a year-to-date, year-over-year comparison, Bexar County faired well compared to Travis (-10.7%) Harris (-4.9%) and Dallas County (-6.8%.)
Each of these counties indicates a decrease while Bexar county shows a promising a 3.4% increase.
As predicted, June has shown to be a strong buying season. This can be seen by the pending sales of homes (3,785).
An additional 931 homes are pending from June through July, consequentially resulting in a 32.6% increase.
San Antonio Real Estate Market Forecast 2020 – 2021
What are the San Antonio real estate market predictions for 2020? Let us look at the price trends recorded by Zillow over the past few years. Since 2015, the median home price in San Antonio has appreciated by 36% from $138,000 to $187,718. In the past year, the San Antonio home prices increased by 4.8%. Last year saw was the seventh consecutive year of home price gains.
The San Antonio real estate appreciated by roughly 3.8% over the past year. However, according to many experts, the market has cooled off a bit and you shouldn’t expect any sizable or significant gains based on current market conditions.
The Zillow Buyer-Seller Index (BSI) shows that San Antonio is currently the buyer’s real estate market. This is computed monthly. According to their index, there exists a general lack of demand in San Antonio, and homes can linger on the market longer and ultimately sell for less, putting negotiating power in the hands of buyers. In other words, based on the last month’s key housing market indicators, current supply is exceeding the demand, giving buyers an advantage over sellers in price negotiations. There are more homes for sale than there are active buyers in the marketplace.
The latest San Antonio real estate market forecast is that the home prices may remain flat or decrease by 1.7% – in the next twelve months. This could also be due to the short term impact of the ongoing pandemic which has impeded the real estate sales activity in the entire nation.
Here is the visual representation of historical San Antonio home prices and the latest forecast until March 2021.
Snapshot Courtesy of Zillow.com
Here is a short and crisp San Antonio housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for San Antonio is 73 and it is predicting a positive trend. LittleBigHomes.com estimates that the probability of rising home prices in San Antonio is 73% during this period. If this price forecast is correct, the San Antonio home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
The historical change in home prices for San Antonio-New Braunfels, TX is shown below for the three-time periods. The San Antonio Home Price Index has increased for the last 11 consecutive quarters (data up to 3rd Quarter, 2018). The 3rd Quarter index value was 3.82 points higher than the 2nd Quarter, 2018 an index value of 243.75, resulting in a 1.57% rise in the 3rd Quarter for the San Antonio Market.
The highest annual change in the value of houses in the San Antonio Real Estate Market was 37% in the twelve months ended with the 4th Quarter of 1981. The worst annual change in home values in the San Antonio Market was -15% in the twelve months ended with the 4th Quarter of 1982. The historical change in home values has been calculated until the 3rd Quarter of 2018. For the upcoming updates, you can visit LittleBigHomes.com.
Time Period
San Antonio Metropolitan Area Real Estate Appreciation
Last 5 Years
40%
Last 10 Years
43%
Last 20 Years
128%
The question is whether it is going to remain a hot real estate market amid the ongoing Coronavirus pandemic? In conclusion, we can say that these numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? It is quite evident that the ongoing pandemic has not had any major impact on the San Antonio housing market.
Even though the market has cooled off, San Antonio’s properties do receive multiple offers. According to Redfin, a real estate brokerage company, San Antonio real estate market is somewhat competitive with homes selling for around 2% below the listing price. This relative slowdown in appreciation could entice buyers. This is especially true for new home buyers and those looking for properties at the lower end of the price scale, which experienced the biggest reduction in the rate of a price increase.
As predicted, June has shown to be a strong buying season. Home sales rebounded in June. There was a double-digit y-o-y increase of 14 percent in sales after two months of decreased sales volume in April and May due to the coronavirus pandemic. This can be seen by the number of pending sales of homes (3,785). An additional 931 homes are pending from June through July, consequentially resulting in a 32.6% increase.
As the pandemic is not over, the buyer activity continues to be robust while seller activity continues to be a bit softer. The indicator of which is that fewer homes are being listed for sale than a year ago because some potential home sellers may have taken a pause because of COVID-19. Until sellers regain confidence, housing inventory will continue to be constrained during what is expected to be an active summer selling season.
The strong demand is also due to current record-low interest rates and the limited inventory of homes for sale. In a balanced real estate market, it would take about six months for the supply to dwindle to zero.
San Antonio and the surrounding metro area is still a strong, steady market that’s poised to stay that way in the coming months. The San Antonio economy is expected to grow by about 39.6% in the coming decade, which is more than the national average. The means low unemployment rates, notable population growth, and yes – great opportunities for real estate investment.
In terms of months of supply, San Antonio can become a buyer’s real estate market if the supply increases to more than six months of inventory. And that’s not going to happen soon. The San Antonio area currently has only 2.8 months of inventory available, making it a strong seller’s real estate market. Less inventory means home sellers have more power. Therefore, in the long term, the San Antonio real estate market remains strong and skewed to sellers, due to persistent imbalance in supply and demand.
The US Housing Market has begun to heat up with an increase in home buying despite the COVID-19 pandemic. The real estate sector has been one of the most resilient areas of the economy during the severe economic shutdown. The latest housing market trend to be seen is that the lack of supply is leading to a decline in existing home sales even though new home sales have jumped nearly 13% year over year.
Real estate market forecasts given in this article are just an educated guess and should not be considered financial advice. Real estate prices are deeply cyclical and much of it is dependent on factors you can’t control. Many variables could potentially impact the value of a home in San Antonio in 2020 (or any other market) such as big changes in the distressed, new-construction, or luxury home segments. There are also a wide variety of economic and political factors that can and do impact real estate markets. Most of these variables are difficult to predict in advance.
San Antonio Housing Market: Where To Find Homes For Sale?
If you are a home buyer looking to find homes for sale or rent in San Antonio we recommend you do that online or hire a local real estate agent. There are many sites where you can find homes available for sale on the market. San Antonio has a mixture of owner-occupied and renter-occupied housing units for sale.
As per Neigborhoodscout.com, real estate data provider, three and four-bedroom single-family detached are the most common housing units in San Antonio. Other types of housing that are prevalent in San Antonio include large apartment complexes, duplexes, rowhouses, and homes converted to apartments.
Single-family homes account for about 62% of housing units San Antonio. At the national level, the single-family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single-family rental units. With 2020 being, theoretically, in the middle of a boom, there are still 4 years for residential construction to surge. Most likely, a housing shortage will remain in 2020, keeping home prices high.
As we write this, there are 5579 single family homes for sale in San Antonio, TX on Zillow. Additionally, there are 888 single family homes for rent in San Antonio, TX. Under potential listings, there are about 32 Foreclosed and 4 Pre-Foreclosure homes. These are the delinquent properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
The median list price per square foot in San Antonio is $124, which is lower than the San Antonio-New Braunfels Metro average of $131.
The median price of active homes for sale in San Antonio is $235,000.
The median rent price in San Antonio is $1,300, which is lower than the San Antonio-New Braunfels Metro median of $1,375.
There are currently 10,972 homes for sale and 3592 homes for rent in San Antonio, TX on Realtor.com, a real estate listings website. As we write this, the newly listed homes are 1,069. According to their statistics, in June 2020, San Antonio was a seller’s real estate market, which means there were roughly more buyers than there were active homes for sale. On average, homes in San Antonio, TX sell after 60 days on the market. The trend for median days on market in San Antonio, TX has gone down since last month, and slightly up since last year.
Ideally, a buyer would prefer a sale to asking price ratio that’s closer to 90%. The sellers in San Antonio have managed to hold good leverage in these negotiations in the past month. On average, they could sell homes for 99.52% of the asking price. A seller would always prefer scenarios that can yield a ratio of 100% or higher. The median list price of homes in San Antonio, TX was $259.5K in June 2020, trending up 4.6% year-over-year. The median listing price per square foot was $128.
Graph Credits: Realtor.com
San Antonio-New Braunfels Housing Market Area
The San Antonio-New Braunfels Housing Market Area (HMA) encompasses eight counties in south-central Texas. The principal city of San Antonio, the seventh most populous in the United States, is in Bexar County. The city of New Braunfels, in Comal and Guadalupe Counties, is 30 miles northeast of the city of San Antonio. Surrounding Bexar County, Atascosa and Wilson Counties to the south, Bandera and Medina Counties to the west, and Kendall County to the north complete the HMA.
According to a 2016 publication by Huduser.gov, economic conditions in the San Antonio-New Braunfels HMA have improved since 2010, with nonfarm payrolls expanding at an increasing rate each year. Payrolls increased by an average of 13,600 jobs, or 1.7 percent, annually from 2001 through 2008 and reached a high of 860,400 jobs, which included the 2,000 manufacturing jobs added in 2006 when Toyota Motor Corporation opened an $850 million manufacturing facility.
As a result of the national recession, which lasted from December 2007 until June 2009, payrolls in the HMA declined in 2009 by 15,900 jobs or 1.8 percent. The effects of the national recession were moderate in the HMA, in part because of strong growth in the education and health services sector and the stability of the government sector.
San Antonio Real Estate Foreclosure Statistics 2020
Here are some foreclosure statistics of San Antonio. According to Zillow’s data, the percent of delinquent mortgages in San Antonio is 1.6%, which is higher than the national value of 1.1%. There are currently 433 properties in San Antonio, TX that are in some stage of foreclosure (default, auction or bank-owned) while the number of homes listed for sale on RealtyTrac is 2,581. In June, the number of properties that received a foreclosure filing in San Antonio, TX was 19% lower than the previous month and 70% lower than the same time last year.
Potential Foreclosures in San Antonio
433 (RealtyTrac)
Homes for Sale in San Antonio
2581
Recently Sold
15,470
Median List Price
$234,925 (2% rise vs May 2019)
According to RealtyTrac, currently, in San Antonio, the zip code with the highest foreclosure rate is 78264, where 1 in every 682 housing units is foreclosed. So, you’d find a lot of distressed sellers in this area and get some discounted off-market deals. 78237 zip code has the lowest foreclosure rate, where 1 in every 3911 housing units becomes delinquent.
San Antonio Real Estate Market: Is It A Good Place For Investment?
Should you consider San Antonio real estate investment? Now that you know where San Antonio is, you probably want to know why we’re recommending it to real estate investors. Many real estate investors have asked themselves if buying a property in San Antonio is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the real estate investors and buyers in 2020.
If you are looking to make a profit, you don’t want to buy the most expensive property on the San Antonio real estate market and expect to make a good profit on rents. Perhaps you are looking for a slightly different hold-over, an investment property in San Antonio that you might move into or sell at retirement in the future. Either way, knowing your profit potential and purpose is the first thing to consider.
Let’s take a look at the number of positive things going on in the San Antonio real estate market which can help investors who are keen to buy an investment property in this city. We’ll address the biggest factor pulling people to the San Antonio housing market.
San Antonio’s Fast Growth Propels its Real Estate Market
San Antonio is the seventh-most populous city in the United States. According to Wikipedia, it was the fastest-growing city among those in the top ten. It has been among the nation’s fastest-growing cities for college-educated millennials. The city offers a thriving job market, delicious Tex-Mex, a family-friendly environment, and a slew of festivals and community gatherings. AreaVibes gives San Antonio high scores for its many amenities, low cost of living, affordable real estate, excellent schools, and sunny weather.
The San Antonio real estate market is seeing property valuations skyrocket because of the challenge of meeting the demand of everyone moving here for work or mere opportunity. The San Antonio housing market is trying to cope with a city growing at roughly 2% a year. The median age of a San Antonio resident is 33 while the average U.S. resident is nearly 38 years old.
The average household in San Antonio has 2.8 people while the U.S. household has 2.6. These stats represent a community that is younger and has more children than average. San Antonio’s rapidly growing economy means that many of the children born here will stay here, fueling the San Antonio real estate market for another generation.
Clear Growth Channels: San Antonio sits at the intersection of Interstate 35 and Interstate 10. This makes San Antonio a major transit corridor, but it also provides clear lines of growth. Businesses and, eventually, residential development are expanding along these lines. As warehouses and service businesses expand along these major thoroughfares, single-family homes and condos follow. You don’t have to worry about where to build – you know the city will expand that way eventually.
The limited housing supply keeps rents and property values going up year-over-year. San Antonio has been hit with a double whammy with regard to its efforts to meet housing demand. San Antonio has lagged behind other Texas cities in the recovery of its home building industry; housing starts grew by 63% in San Antonio since 2011 while rising by 181% in Austin. This means the fast growth of neighboring cities like Austin is sucking in the talented craftspeople that would be needed to build more homes in San Antonio.
The shortage of construction workers means that home prices are still going up while it takes longer to meet demand than it does in Dallas-Fort Worth, Austin, and Houston. The matter was only made worse by the number of people who moved down to Houston to aid in rebuilding there after Hurricane Harvey.
San Antonio Rental Market is Growing
For those who want to invest in rental real estate, the San Antonio real estate market is an ideal location because of the outsized military presence. Fort Sam Houston is located inside the city limits. Lackland Air Force Base, Randolph Air Force Base, Camp Bullis, and Camp Stanley are located in the immediate vicinity. This means that there is a large population that will almost always rent because they don’t know where they’ll be sent on their next assignment.
Why is San Antonio developing so quickly? The answer is the fast-growing job market. When a military base closes, this can be a serious blow to the economy of a city. San Antonio turned the closed Kelly Air Force Base into Port San Antonio, an aerospace and industrial park that provides as many high paying jobs as the closed military base. Six Fortune 5000 companies are located here.
Toyota built a manufacturing plant in San Antonio. Automotive suppliers like Indo-MIM are moving in to supply companies like Toyota, adding to the employment base while diversifying it beyond tourism and defense. In short, the San Antonio real estate market is bolstered by many moving in who hope to find work even if they don’t have a job today.
Rental Market Statistics: The average rent for an apartment in San Antonio is $1,049, a 3% increase compared to the previous year. According to RENTCafe, 35% of the households in San Antonio are renter-occupied while 64% are owner-occupied. More than 90% of the apartments can be rented for $1,500 or less. Only 2% of the apartments fall in the rent price range of $2,000 or more.
The average size for a San Antonio, TX apartment is 855 square feet. Studio apartments are the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage. One-bedroom units apartments generate the majority of renter interest followed by the two-bedroom apartments.
These are some of the most affordable neighborhoods where the rent prices are way below the San Antonio average rent of $1,049/mo:
Kelly – South San Pueblo, where the average rent goes for $758/month.
University Park, where renters pay $765/mo on average.
Woodlawn Hills, where the average rent goes for $765/mo.
United Southwest, where the average rent goes for $780/month.
Pecan Valley, where the average rent goes for $781/month.
Meadow Village, where renters pay $788/mo on average.
Sunshine Estates, where the average rent goes for $824/mo.
The Hills Of Park North, where renters pay $858/mo on average.
San Antonio International Airport, with an average rent of $974/month.
Near Northwest San Antonio, where apartments go for $935/month.
According to RentJungle, as of June 2020, the average rent for an apartment in San Antonio, TX is $1157 which is a 1.38% decrease from last year when the average rent was $1173, and a 0.43% increase from last month when the average rent was $1152.
One-bedroom apartments in San Antonio rent for $982 a month on average (a 1.02% increase from last year).
Two-bedroom apartment rents average $1238 (a 1.7% decrease from last year).
The average apartment rent over the prior 6 months in San Antonio has decreased by $36 (-3%).
One-bedroom units have decreased by $13 (-1.3%).
Two-bedroom apartments have decreased by $41 (-3.2%).
San Antonio’s Affordable Real Estate
San Antonio has a dearth of affordable housing because demand is so much greater than the supply. This has created a large number of renters who need to pay quite a bit to rent apartments or single-family homes. We know there is a lack of housing relative to demand when a balanced market has a 6 month home inventory and San Antonio has only a two-month inventory. There are many lower-cost investment opportunities for landlords or rental property investors.
Texas overall is seeing the housing market shift. In 2011, two-thirds of homes sold cost less than $200,000. In 2017, these same homes were only two-fifths of those sold. When you compare the price mix of different Texas real estate markets, Houston and Fort Worth have seen a significant increase in homes costing $200,000 to $400,000, while the San Antonio real estate market is skewed cheaper. If you’re buying rental real estate, you can find more homes that are cheaper than average here than you could other hot Texas markets.
Landlord Friendly State: The state of Texas has an efficient eviction process. Leases can list repairs the tenants must make at their own expense. Texas doesn’t set a limit on security deposits. The state doesn’t require landlords to have specific security devices in place.
The Redevelopment Potential of the South Side
San Antonio’s new construction has been focused on the north side of the city, while the south side has languished. However, the low prices for land and property such a short distance of downtown is leading to major redevelopment in the area. Infrastructure like sewers and new roads are being built on the southern nearly-rural side of San Antonio, especially long-neglected areas barely inside Loop 410. The southern riverfront, too, is attracting interest as resorts and hotels pop up along the stretch of river known as Mission Reach.
On Realtor.com, there are currently 4300 new construction single-family homes for sale in San Antonio within a price range of $122,899 to $2.7M. You can find affordable new construction homes in East San Antonio neighborhood with the median listing price of $210,000. You can also find new construction houses in a neighborhood called “People Active in Community Effort,” where the median price is around $190,000.
San Antonio Investment Properties: Where To Invest?
Investing in San Antonio’s real estate can be a worthy investment due to a steady rate of appreciation. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. There are many reasons why the San Antonio real estate market is going strong today and certain to remain strong for years to come. San Antonio is a fast-growing city that literally cannot keep up with the population growth, keeping rental rates and property values high. Redevelopment on the south side and as land use shifts creates opportunity.
Good cash flow from San Antonio investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding a good San Antonio real estate investment opportunity would be key to your success. If you invest wisely in the San Antonio real estate, you could secure your future.
The best investment is now looking for a rental property that will generate good cash flow. Your best tenants would be the retirees who intend to relocate to San Antonio and want to purchase property to rent out. The three most important factors when buying a real estate anywhere are location, location, and location.
The location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your San Antonio investment property and you should be able to flip it for a lump sum profit. The neighborhoods in San Antonio must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools, and shopping malls.
A cheaper neighborhood in San Antonio might not be the best place to live in. A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals in Class A neighborhoods.
According to Realtor.com, there are 174 neighborhoods in San Antonio. Some of the popular neighborhoods in San Antonio are Dignowity Hill, Terrell Heights, Terrell Hills, Mahncke Park, Castle Hills, Stone Oak, Alamo Heights, Hollywood Park, Alamo Ranch, Helotes, Lavaca, Tobin Hill, Highland Park, Monte Vista, and Elm Creek.
The Dominion has a median listing price of $899K, making it the most expensive neighborhood. It has a low crime rate. You’d find a lot of newer homes and homes with large lots in this neighborhood. Another popular neighborhood with a low crime rate is Timberwood Park where the median home price is around $398,000. Highland Hills is the most affordable neighborhood, with a median listing price of $129,900.
Downtown is the heartbeat of the San Antonio area. It is the central business district of San Antonio and also serves as the urban core of Greater San Antonio, a metropolitan area with nearly 2.5 million people. Bustling downtown is San Antonio’s most in-demand neighborhood. The Central Business District is home to the Rivercenter, a famous shopping mall. In Downtown, there are a lot of bars, restaurants, coffee shops, and parks.
Many families live in Downtown and residents tend to lean liberal. The population of renters in this neighborhood amounts to 70%. The median home value in Downtown San Antonio is $421,008 (Zillow) and home values have gone up 1.7% over the past year. Downtown’s average rent is around $1,765/month, which is more than San Antonio’s average rent.
Oakland Estates is a neighborhood is in Bexar County and is one of the best places to live in Texas. Living in Oakland Estates offers residents an urban feel and most residents rent their homes. According to Niche.com, it is #3 in The Best Places to Live in San Antonio Area. It mostly features large homes that are very reasonably priced. This neighborhood is perfect for those seeking single-family homes.
This is a varied community, with homes representing a wide range of time periods and styles. In general, homes in Oakland Estates are about $135,000 – $750,000 and sit on 2-acre lots with four bedrooms and three bathrooms. It is also a great area for rental property investment as more than 85% of the population comprises renters. The median home value in Oakland Estates is $308,495 and home values have gone up 2.1% over the past year. On average, homes here are $149 per square foot and typically list for around $330,000.
North Central Thousand Oaks is a subdivision located in Bexar County which is within the San Antonio, TX region. It is surrounded by restaurants, education opportunities, entertainment venues, shopping, and much more. Areavibes gives it a livability score of 92, which is considered as exceptional. It is ranked #7 in the best places to live in San Antonio and #8 in Texas. The median home value in North Central Thousand Oaks is $268,892 (Zillow) and home values have gone up 2.1% over the past year.
The average rent is around $1,052/month, which is less than San Antonio’s average rent of $1,157 (On RentJungle). According to Mashvisor’s calculation, the median property price is $278,500. Investing in long-term rentals can fetch a rental income of $2,717 and a cash-on-cash return of 4.6%. They rank this neighborhood the highest when it comes to cash-on-cash returns for both traditional as well as Airbnb rentals.
Beacon Hill neighborhood is one of the country’s most-popular affordable places to live. It features an assortment of neighborhoods from the quaint and comfortable Beacon Hill to the established Monte Vista. Each neighborhood has distinctive housing characteristics, with traditional Victorians in Beacon Hill, and lofts, condos, and converted homes in Five Points. The architecture includes a mix of single-family homes, condominiums, and townhouses. Alta Vista and Beacon Hill were among the first “modern” platted subdivisions developed in San Antonio.
The region bordered by Interstate 10, West Hildebrand Avenue, and Fredericksburg and San Pedro roads made Redfin’s list of the “10 Hottest Affordable Neighborhoods of 2019.” Beacon Hill was the only Texas neighborhood mentioned in the top ten. The median home value in Beacon Hill is $224,335 (Zillow) and home values have gone up by a whopping 7.6% over the past year. The average rent for a one-bedroom apartment in Beacon Hill is around $1,041, and for a two-bedroom apartment, renters need to pay $1,330/month.
Here are the ten neighborhoods in San Antonio having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.
Fm Road 2696 / Dietz Elkhorn Rd
State Loop / Hall Blvd
S Presa St / Sadie St
S Presa St / Florida St
City Center
S Main Ave / E Durango Blvd
Buena Vista
Blanco Rd / W Magnolia Ave
Broadway St / E Jones Ave
N Main Ave / E Euclid Ave
NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in San Antonio.
Consult with one of the investment counselors who can help build you a custom portfolio of San Antonio turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of San Antonio.
Not just limited to San Antonio or Texas but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete San Antonio turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
Is It The Right Time To Invest In Real Estate? – The national homeownership rate is on the decline for the first time since 2017. As demographics change and baby boomers retire, you’re seeing Millennials who may not be ready to buy houses. In 2018, Millennials made up about 22 percent of the population in the United States. They’re choosing to rent over buying a single-family home or an apartment. Rising home prices and shortage of starter homes have not left Millennials many choices but to delay homeownership. Moreover, it’s even harder to take out a mortgage for those who have student loan debt.
San Antonio | Texas Real Estate Investment Opportunities
Apart from San Antonio, there are several growing real estate markets in the state of Texas. Dallas is the one that is popular among real estate investors. It is a great market because it has a strong economy and a constant population growth and will make your pockets bigger. As rents go up smart investors should invest in Dallas. Dallas’s local economy is a mix of aerospace, computer chips, telecommunications, transport, energy, and healthcare sectors and the Finance and Business Services. These sectors are all providers of good wages which allows for a strong market for Dallas investment properties.
Similarly, Houston is another great market for investing in real estate. Houston, TX is becoming a hotbed of buyer activity that could be really beneficial for real estate investors; just ask the multitude of overseas investors who are choosing Houston as the city of choice to invest in for the foreseeable future. The Houston metro area offers great opportunities for investors who are looking for a stable market that offers both cash flow and equity growth at a price that is STILL well below their replacement value.
The El Paso real estate market is another hot market to invest in. El Paso real estate market was ranked at 4th in Trulia’s hottest real estate markets to watch in 2018. El Paso’s strong job growth, affordability, low vacancy rates, and a high population of young households were pivotal in the ranking process. The cost of living in El Paso is lower than the national average, while the cost of housing is well below that of other major metropolitan areas, including Houston and Austin.
The Central, Cielo Vista and Mesa Hills areas offer more affordable rental properties for sale, while neighborhoods in the northwestern and eastern parts of the metro area have some of the more expensive housing inventory. The amount residents spend on everyday expenses, such as food and transportation, is slightly less than what the average American pays.
With Austin, Texas, becoming a more diverse city every year, there are plenty of opportunities to take advantage of – from buying new homes to different investment options in the Austin housing market 2019. Austin is a leader across the country with jobs and when you combine that with home prices not as drastically increasing, you’ll get a real estate market that many others envy.
Homes in Austin are 23% cheaper than the national average. It may be the second most expensive housing market in the state with a median home price of around $350,000, but it is still far cheaper than California or New York. Buy up condos or townhomes, and you’ll be able to see a sizable return on the investment.
The Dallas-Fort Worth area is exploding due to its strong job market, low housing costs, and low taxes. The Fort Worth housing market presents an excellent opportunity for investors because it is both cheaper than its big brother and providers a wider variety of properties. The Fort Worth real estate market has a much lower density than the Dallas real estate market. You can find high-density housing in downtown Fort Worth, but it is far easier to find horse-friendly properties in the Fort Worth real estate market than the distant suburbs of Dallas. This is, of course, in addition to the luxury housing markets in both cities.
Let us know which real estate markets in the United States you consider best for real estate investing!
Please do not make any real estate or financial decisions based solely on the information found within this article. Some of the information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US. This article aimed to educate investors who are keen to invest in the San Antonio real estate. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend doing your research and take the help of a real estate investment counselor.
References:
Market Data, Reports & Forecasts
https://realestate.sabor.com/
https://realestate.sabor.com/pages/press-releases/
https://www.zillow.com/sanantonio-tx/home-values
https://www.redfin.com/city/16657/TX/San-Antonio/housing-market
https://www.realtor.com/realestateandhomes-search/San-Antonio_TX/overview
Rental Trends
https://www.rentjungle.com/average-rent-in-san-antonio-rent-trends/
https://www.rentcafe.com/average-rent-market-trends/us/tx/bexar-county/san-antonio/
Reasons to consider investing in San Antonio
https://www.bestplaces.net/people/city/texas/san_antonio
http://projects.expressnews.com/growth-on-the-south-side
http://www.landlordstation.com/blog/top-landlord-friendly-states/
https://opportunityurbanism.org/2017/11/price-texas-growth-housing-affordability
https://www.mysanantonio.com/business/local/article/Indian-manufacturer-to-expand-San-Antonio-12255780.php
https://www.expressnews.com/150years/major-stories/article/Arrival-of-Toyota-plant-transformed-San-6458075.php
https://www.expressnews.com/real-estate/article/San-Antonio-s-housing-market-strong-but-lack-12477396.php
https://www.mysanantonio.com/real-estate/article/San-Antonio-home-sales-and-prices-keep-climbing-12841312.php
Neighborhoods & Real Estate Data
https://www.zillow.com/
https://www.neighborhoodscout.com/tx/san-antonio/real-estate/
https://www.niche.com/places-to-live/search/best-neighborhoods/m/san-antonio-metro-area/
San Antonio Real Estate Market 2020 Analysis: Why and Where to Invest
https://www.redfin.com/blog/hottest-affordable-neighborhoods-2019/
http://www.beaconhillsanantonio.org/history/
https://www.apartmenthomeliving.com/san-antonio-tx/beacon-hill/
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