San Antonio Real Estate Market Overview & Forecast (2025 & 2026)

The San Antonio real estate market in 2025 offers a combination of affordability, strong population growth, and rental income potential—making it an attractive destination for real estate investors and buyers alike. As Texas continues to welcome new residents from across the country, San Antonio stands out for its relatively low housing costs, robust job market, and consistent real estate performance.

Compared to other major Texas cities like Austin or Dallas, San Antonio remains more accessible for first-time buyers and investors seeking high rent-to-price ratios.

The market is currently transitioning from the aggressive appreciation seen during the pandemic years into a more balanced environment, marked by moderate home price increases, healthier inventory levels, and growing demand in select neighborhoods.

Overview of The San Antonio Housing Market

As of Q1 2025, the San Antonio housing market is showing signs of steady normalization after the rapid growth of the pandemic years. While home prices are rising at a moderate pace, the city continues to offer some of the most affordable property values among major Texas metros. With a growing population, improved inventory levels, and increased buyer interest in suburban and transitional areas, San Antonio remains a prime target for long-term investors and entry-level buyers alike.

The median listing price in San Antonio is currently $297,000, reflecting a 0.5% year-over-year increase. The median sold price is roughly $290,000, which suggests that homes are generally transacting close to asking—demonstrating a healthy, stable market where neither buyers nor sellers dominate negotiations.

Inventory is trending upward, with 4,658 active listings and approximately 1,309 new listings entering the market in Q1 2025. Homes are selling at a moderate pace, spending an average of 58 days on the market, which gives buyers more time compared to the ultra-competitive periods of the past two years.

Additionally, about 28.6% of homes are selling above listing price, showing that demand remains strong in select neighborhoods and price brackets. This level of activity is especially visible in areas under $350,000, where affordability is still driving competition.

The median price per square foot in San Antonio is currently $172, although this varies significantly depending on location, property type, and age of construction. Newer developments in areas like Stone Oak and Alamo Ranch fetch higher per-square-foot values, while older homes in revitalizing zones like Southtown and West San Antonio remain more affordable.

Overall, the San Antonio housing market is defined by:

• Median home prices up 0.5% YoY
• Inventory improving with over 4,600 active listings
• Homes selling in approximately 58 days
• Nearly 29% of properties closing above asking
• Narrow gap between listing and selling prices

In summary, the San Antonio real estate market in 2025 offers a stable and affordable environment for buyers and investors. Well-priced homes in strategic neighborhoods continue to attract strong interest, particularly in value-driven segments with long-term upside.

Neighborhood Analysis

San Antonio’s neighborhoods offer a broad mix of price points, rental potential, and buyer demographics—making it essential for investors and homebuyers to understand how each area performs. From historic inner-city districts to suburban master-planned communities, the city provides a spectrum of opportunities for different investment strategies and lifestyle needs.

Downtown San Antonio

Downtown remains the cultural and economic core of the city, home to the River Walk, historic landmarks, and a growing number of modern condos and mixed-use developments.

The median home price is approximately $310,000, with demand driven by professionals and short-term rental investors targeting proximity to attractions and convention venues. While appreciation is slower here, the area remains desirable for its centrality and tourism-based rental income opportunities.

Alamo Heights

Known for its historic charm, top-tier schools, and tree-lined streets, Alamo Heights is one of San Antonio’s most prestigious neighborhoods.

The median home price stands at $450,000, reflecting strong buyer demand from affluent families and long-term residents. Appreciation has been steady due to limited inventory and continued demand for homes within the Alamo Heights Independent School District.

Stone Oak

Located in North San Antonio, Stone Oak is a popular suburban choice featuring gated communities, retail centers, and top-rated schools.

With a median home price of $350,000, the area attracts upper-middle-class buyers seeking newer construction homes with space, safety, and convenience. Stone Oak remains one of the fastest-growing residential areas in the city, with consistent year-over-year value growth.

Southtown

Southtown is a revitalized arts district adjacent to downtown, known for its blend of historic homes, eclectic culture, and walkability.

The median home price is approximately $275,000, offering one of the best value propositions near the urban core. Investors are increasingly active here, targeting both long-term appreciation and high-performing rentals.

West San Antonio

Traditionally overlooked, West San Antonio is gaining attention due to infrastructure investments and relative affordability.

The median home price is about $240,000, making it one of the most accessible submarkets for entry-level buyers and cash-flow investors. With new commercial development underway, the area shows strong potential for appreciation over the next several years.

Neighborhood Median Prices and Price per SqFt

San Antonio Rental Market Overview

The rental market in San Antonio remains strong in early 2025, supported by steady population growth, affordability compared to other major Texas metros, and sustained demand from students, military personnel, and young professionals.

As home prices and interest rates limit access to homeownership for some residents, rental properties continue to see high occupancy and upward pressure on pricing.

Average Rent Prices in San Antonio

As of Q1 2025, the average rent for apartments in San Antonio is approximately $1,600 per month, which is 11% below the national average, reinforcing the city’s reputation as an affordable housing market.

• Studio Apartments: Average rent is around $1,000/month
  
  
• One-Bedroom Apartments: Approximately $1,106/month
  
  
• Two-Bedroom Apartments: About $1,392/month
  
  
• Three-Bedroom Apartments: Roughly $1,725/month
  

Rent increases have been modest yet consistent, with one-bedroom apartments seeing a 6% year-over-year rise, and two-bedrooms increasing by 3%. Investors targeting cash flow continue to find success in mid-market rental units, especially in neighborhoods with strong job access and public transportation.

Rent by Neighborhood

• Tobin Hill & Midtown: Rapid rent appreciation continues, with studio units averaging $1,878/month, up 109% year-over-year. These areas are seeing significant developer interest due to their walkability and central location.
  
  
• Far North Central & Vance Jackson: Studio rents average around $1,499/month, supported by strong employment hubs and modern apartment complexes.
  
  
• Downtown San Antonio: Surprisingly affordable, with one-bedroom units averaging just $835/month, making it appealing to students and entry-level professionals.
  

Vacancy Rates and Market Trends

San Antonio’s rental vacancy rate currently stands at 7.2%, down from 10% in 2022. Although this figure is higher than the national average of 5.8%, it represents a tightening market driven by elevated mortgage rates and a shift from buying to renting.

Key rental market drivers include:

• Delayed homeownership due to interest rate affordability constraints
• Ongoing in-migration from more expensive metros like Austin and California cities
• Military demand from nearby Joint Base San Antonio and transient professionals

Investor interest remains high in Class B and C multifamily assets, where renovation potential and affordability align with renter demand. Neighborhoods like West San Antonio, Southtown, and Northeast Crossing offer strong yields and consistent tenant occupancy.

Factors Influencing the San Antonio Housing Market

The San Antonio housing market in 2025 is influenced by a variety of demographic, economic, and regulatory forces. These factors collectively shape buyer activity, rental demand, pricing behavior, and long-term investment appeal.

1. Population Growth: San Antonio is one of the fastest-growing cities in the United States. Projections estimate the addition of 80,000 new households by 2026, largely driven by in-migration from other parts of Texas and out-of-state buyers seeking affordability. This sustained population increase is fueling both homebuyer demand and pressure on rental inventory.
   
   
2. Economic Expansion: The local economy continues to diversify, with strength in healthcare, military, manufacturing, cybersecurity, and logistics. Employers such as USAA, H-E-B, Joint Base San Antonio, and Toyota create job stability and drive housing demand, especially in areas with strong commuter access.
   
   
3. Inventory Growth: Active listings are up 15% year-over-year, giving buyers more choices and reducing the bidding pressure that dominated earlier market cycles. New developments are being launched in suburban areas like Alamo Ranch and Far West San Antonio, helping to address supply shortages in the $250K–$350K range.
   
   
4. High Mortgage Rates: With 30-year mortgage rates hovering between 6.5% and 7%, many potential buyers have been priced out of the market or delayed purchases. This has increased rental demand and also provided leverage for cash and investor buyers who can navigate the financing landscape more competitively.
   
   
5. Affordability Advantage: San Antonio remains one of the most affordable large metros in Texas. The median home price of $297,000 is well below Austin and Dallas, attracting first-time buyers and investors looking for strong rent-to-price ratios and capital appreciation in emerging neighborhoods.
   
   
6. Urban Redevelopment and Infrastructure: Investment in roadways, parks, and public transportation is enhancing the appeal of formerly overlooked areas like Southtown, Harlandale, and parts of East San Antonio. These improvements are drawing both developers and early-stage investors looking for long-term growth opportunities.
   
   
7. Military Demand Stability: Joint Base San Antonio, one of the largest military bases in the U.S., continues to provide stable housing demand. Both rental and purchase activity in nearby zones remain consistent year-round, creating a dependable market for landlords and real estate operators.
   
   

San Antonio Housing Market Forecast for 2026

Looking ahead to 2026, the San Antonio housing market is expected to continue its trajectory of stable, moderate growth. While national economic conditions and mortgage rates will play a role, local fundamentals—such as affordability, strong in-migration, and limited inventory—are likely to support continued price appreciation and rental demand throughout the metro area.

Home prices in San Antonio are forecast to increase by 2.5% to 4.5% over the next 12 months. With the current median home price at $297,000, this would result in a projected price range of $304,425 to $310,365 by early 2026.

Gains are expected to be strongest in areas like West San Antonio, Southtown, and Northeast Crossing, where infrastructure improvements and affordability are attracting a steady influx of buyers. Newer suburban developments in Alamo Ranch and Stone Oak will also remain competitive, although price growth may be more modest in these already-established areas.

Homes under $350,000 will continue to represent the most active and competitive segment of the market.

Inventory is expected to remain tight through 2026. Despite improvements in new listings over the past year, construction has not kept pace with demand. While builders are active in outer suburban areas, supply remains limited in many central and established neighborhoods.

The average days on market is projected to remain between 55–65 days, with competitively priced homes in high-demand zones continuing to sell faster. Market conditions are likely to remain balanced, with occasional seller leverage in submarkets experiencing price constraints and high absorption rates.

San Antonio’s rental market is poised for additional strength through 2026. Average rents are expected to grow by 4% to 6%, driven by delayed homeownership, in-migration, and investor appetite for stable rental yields Current average rents of $1,600/month could rise to between $1,664 and $1,696/month by early 2026. Rental increases will likely be strongest in Class B and C inventory, where affordability and location drive occupancy.

Neighborhoods such as Tobin Hill, Midtown, South San Antonio, and Harlandale will continue to offer strong cash flow for landlords, while newer developments in the north and northwest will remain popular among mid- to high-income tenants.

Vacancy rates are expected to decline slightly from 7.2% to around 6.5%, further supporting rental price stability and improving income predictability for property owners.

The region’s population growth is forecast to remain robust, supported by job creation in healthcare, logistics, education, and military sectors. The projected addition of 80,000 new households by 2026 will create ongoing housing demand across both for-sale and rental markets.

Additionally, as interest rates potentially ease later in 2025 or early 2026, buyer demand could accelerate, particularly among first-time homebuyers who have been priced out in recent quarters.

Is It Worth Buying A Property In San Antonio?

Yes—buying a property in San Antonio in 2025 or 2026 remains a smart and strategic decision for both investors and end-users. With a median home price of $297,000, San Antonio continues to offer a rare combination of affordability, income potential, and long-term appreciation within a major metropolitan area.

For real estate investors, the city presents attractive rent-to-price ratios, with average gross rental yields ranging between 6% and 8% in key submarkets like West San Antonio, Southtown, and Harlandale. These neighborhoods offer a strong mix of stable tenant demand, relatively low entry costs, and consistent cash flow—making them ideal for single-family and small multifamily investments.

Owner-occupants benefit from lower purchase prices compared to other Texas metros such as Austin and Dallas. In addition, San Antonio’s expanding job market, good schools in areas like Stone Oak and Alamo Heights, and overall quality of life make it an excellent place to establish long-term residence.

The city’s favorable property tax environment, absence of state income tax, and pro-investor regulations add to its overall appeal for landlords and buyers focused on financial efficiency and portfolio growth.

With vacancy rates falling, rents rising, and new infrastructure boosting property values in transitioning neighborhoods, the timing is favorable for both buying to hold and capitalizing on appreciation.

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