The State of the San Antonio Real Estate Market in 2023: A Comprehensive Overview

jamesvasquez
August 14, 2023

The San Antonio real estate market has been a topic of great interest and discussion in recent times. As the second-largest city in Texas, San Antonio has experienced a strong real estate market, even in the face of rising interest rates and inflation. In this article, we will provide a comprehensive overview of the San Antonio real estate market in 2023, including key trends, forecasts, and investment opportunities.

San Antonio Housing Market in 2023: An Overview

The San Antonio housing market has remained relatively strong in 2023, although there have been some notable changes compared to previous years. The median home prices in San Antonio have experienced a slight decline in recent months, with the average price of a home remaining unchanged at $388,593. However, the median home prices have seen a 3% decrease, now standing at $324,750. These changes in prices should be taken into account when considering the value of properties in the San Antonio area.

Rising Interest Rates and their Impact on the San Antonio Real Estate Market

One of the key factors affecting the San Antonio real estate market in 2023 is the rising interest rates. The average 30-year mortgage loan rate increased from 6.32% in early April to 6.84% by late June. These rising interest rates could potentially impact the demand for homes in San Antonio, as they make borrowing more expensive for potential buyers. It is important for buyers and sellers to monitor interest rate fluctuations and adjust their strategies accordingly.

Rental Market and Occupancy Rates in San Antonio

The rental market in San Antonio has shown strong growth in recent years, with rental rates increasing by 6.4% in 2023. However, occupancy rates have slightly dropped to 5.0% after several quarters of 95%+ occupancy rates. Despite this slight decrease, the relatively low housing stock in San Antonio has driven regular rental increases. Both Class A and Class B properties have experienced double-digit rental growth, making San Antonio an attractive market for rental property investors.

Economic Factors Driving the San Antonio Real Estate Market

San Antonio boasts strong economic fundamentals that contribute to the stability and growth of its real estate market. The city’s employment has surpassed pre-pandemic levels, with nearly 36,000 workers added to the payroll. San Antonio is known for its diverse economy, with significant activity in industrial, manufacturing, healthcare, and sales sectors. The presence of Fortune 500 companies, such as USAA, Valero Energy, and iHeartMedia, further strengthens the local economy and job market.

Forecast for the San Antonio Real Estate Market in 2023

Looking ahead to the remainder of 2023, the San Antonio real estate market is expected to face some challenges. The severe lack of inventory and declining number of new listings available for sale have constrained home sales activity. The number of new listings in spring months has been trending about 40% below 2019 levels and about 25-30% below 2022 levels. As a result, homebuying activity may remain disappointing in the third quarter. However, the market is expected to rebound in the long term, driven by strong economic fundamentals and population growth.

Investment Opportunities in the San Antonio Real Estate Market

Despite the challenges and fluctuations in the market, San Antonio offers attractive investment opportunities for real estate investors. The city’s strong job market, affordable housing options, and population growth make it an appealing destination for investors. Landlord rights are protected in Texas, which provides additional security for real estate investors. The presence of military bases and a diverse economy further contribute to the stability and demand for housing in San Antonio. We are one of the most prominent companies that buy houses in the San Antonio real estate market. If you’re looking to sell your home without the hassel of listing, call us today.

Key Submarkets and Rental Rates in San Antonio

San Antonio has several key submarkets that offer varying rental rates and investment potential. Submarkets such as Southtown, Beckmann, and UT of San Antonio have the highest multifamily rental rates, ranging from $1,634 to $1,657 per month. Class A and Class B properties in these submarkets have experienced double-digit rental growth in recent years. Investors should focus on these submarkets for potential rental property opportunities.

New Construction and Development in the San Antonio Real Estate Market

Real estate development in the San Antonio multifamily market has been relatively slow in recent years, with low inventory growth. However, there are significant construction plans for 2023 and 2024, with over 11,000 units in the construction pipeline as of August 2023. Central San Antonio, particularly the River Walk and Pearl districts, has plans for numerous large-scale developments. This increase in new construction will help meet the demand for housing and stabilize occupancy rates.

Tips for Navigating the San Antonio Real Estate Market

Navigating the San Antonio real estate market requires careful consideration and planning. Buyers and sellers should stay informed about interest rate fluctuations and adjust their strategies accordingly. Conducting thorough market research, including analyzing rental rates and occupancy rates in specific submarkets, can help investors make informed decisions. Working with a knowledgeable real estate professional is also recommended to navigate the complexities of the market and ensure a successful transaction.

Conclusion

The San Antonio real estate market in 2023 presents both challenges and opportunities for buyers, sellers, and investors. While rising interest rates and limited inventory may impact the market in the short term, the city’s strong economic fundamentals and population growth provide a solid foundation for long-term growth. By staying informed, conducting thorough market research, and working with experienced professionals, individuals can navigate the San Antonio real estate market successfully and make sound investment decisions.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice. Always conduct your own research and consult with professionals before making any financial decisions.

Let's Get Started on your Cash Offer Today.

Excellent

5-star rating

Reviews Matter.

"We have worked hard to follow through on every transaction. We're not perfect, but we strive to acheive excellence." - Owner

These group of investors were really knowledgeable and helpful in getting our property sold with no hassle. Thank you Jill and Edgar for all your help in making this a quick and hassle free process. We appreciate you were always available to take our calls and that y’all were very professional.

We sold our home with this company and were overall pleased with the process and outcome. The process can be a bit of an emotional roller-coaster (this is primarily due to the nature of the market, not a fault of the company), but Edgar and his team did their best to make it as straight-forward and stress-free as possible. Be prepared to show your home to potential investors and marketers, and be aware that you will probably not receive market value for your home. But if you need to sell your home quickly and don't have the available cash to cover repairs and closing costs, this is the best route to go. We closed within 30 days of having reached out to House Buyer San Antonio, and the funds were transferred to us within 24 hours of closing.

Edgar was very professional with great communication skills. He made the transaction run very smooth as it was a stressful time moving our mother out of her home and into a nursing home.

This company made the process of selling my home an extremely pleasant experience. I was very impressed and satisfied with the whole process. Thank you, Maria Gonzalez

Sal and the team were great. I was selling a house for my mom, and I was 1000 miles away. I made arrangements to meet several companies and Sal was the most prompt with returning calls and texts. Very important when you need to move quickly. He made an offer that worked and we got the house sold quickly. Selling a home is stressful and there was still stress, but it was mitigated by Sal's flexibility. God is good. Rick.

Right from the get go response time was awesome. I filled out the information on the web site and received a response from somebody with in hrs. Sal took over and has help get us through the pain of selling my childhood home with ease. Gave us a excellent offer. Would recommend him to all that are trying to sell a home.