The National Association of Realtors (NAR) has named San Antonio as one of the top ten “hidden gem” housing markets for 2022, according to the NAR.
Even though home prices in San Antonio have increased by approximately 20% year-over-year and the median home price has surpassed $300,000 for the first time, the National Association of Realtors believes that prices are still undervalued about underlying market conditions.
The city of San Antonio is identified as among the most stable rental markets in the country, according to a RENTCafé year-end report for 2020. In the city of San Antonio, according to the San Antonio Business Journal, Generation Z is the generation that rents the most apartments. Due to the continued increase in home sales in San Antonio, price increases are occurring, and inventory is becoming increasingly scarce, making rental property in San Antonio an incredibly popular investment.
San Antonio, which is located in South Central Texas, is approximately one hour’s drive from Austin and three hours drive from Houston. The city of San Antonio, which was originally established as a Spanish colonial outpost in 1718 and is home to the Alamo, has experienced rapid growth in recent years.
Located in the southwestern corner of the Texas Triangle, which includes the metropolitan areas of San Antonio, Austin, and New Braunfels in addition to the state capital of Austin, San Antonio is the state capital of Texas. In the region, the economy is as diverse as the city itself, with the manufacturing, military and defense, health care, financial services, and energy sectors all contributing to the region’s continued job growth and high demand for rental property.
San Antonio is among the top ten major metro areas with the greatest population growth between 2010 and 2020. The metropolitan area has experienced the seventh-highest rate of population growth over the past decade, trailing only Austin, Houston, and Dallas-Fort Worth in terms of population growth.
The reality is that Alamo City has already been experiencing significant growth for quite some time now. Local news station KENS 5 reported in 2020 that people from all around the country are flocking to San Antonio, drawn by the city’s low tax rates and low cost of living, which attracts them to the area. It is estimated that an average of 66 people relocate to the metropolitan area every day, making San Antonio one of the quickest cities in the United States.
According to KSAT News, San Antonio outperforms other Texas cities when it comes to the proportion increase in jobs paying six figures. Within five years, the metro area experienced a 163 percent increase in six-figure jobs, placing it at #7 on a list of large metro areas that experienced the most high-paying employment growth over the previous five years.
As reported, financial trends in San Antonio are overwhelmingly positive at this time. The index of the business cycle has accelerated, jobs are being added at a steady rate, and unemployment is lower than the state’s overall unemployment rate in Texas.
Real Estate Market
The homes for sale in San Antonio TX are expected to outperform that of other Texas cities in 2022, with home prices expected to rise by 3.5 percent this year, according to forecasts. Curbed magazine named San Antonio as one of the top 5 cities in the country where property could be a good investment in 2020 a couple of years ago.
Twenty-four months later, it appears that Curbed’s prediction that the San Antonio real estate market would outperform the national average was accurate. The prices of the homes for sale in San Antonio TX increased by 19 percent over the previous year (as of November 2021) for a single-family home, while the number of days on market has decreased to 32 from 49 at the same time the previous year, according to data from the San Antonio Board of Realtors (SABOR).
It is the perfect destination for individuals who want to be enlightened, curious, hungry, and adventurous. A short car ride of the city brings you to The Alamo, the San Antonio River Walk, which meanders through five miles of Downtown San Antonio, and SeaWorld and Six Flags Fiesta Texas, which are both located just outside the city limits.
Attractive to Renters
Prices for three-bedroom homes in San Antonio are rising, with the median rent for a three-bedroom home increasing by 13 percent year over year. Several factors, including moving inside the city, in-migration from other areas of Texas and the United States, and a lack of available inventory, according to MYSA, have contributed to the increase in rents in recent years.
The city of San Antonio is known as one of the most stable markets for rental activity in the United States. Renters who were relocating from another part of the city accounted for approximately 60% of the rental applications received. San Antonio’s youthful population helped Generation Z surpass Generation X as the most active renter generation, which was previously held by the latter.
One of the reasons that WalletHub ranks San Antonio as one of the best cities for renters is the strong performance of the city’s rental market. According to the report, more than 180 rental markets were analyzed using the same key metrics that real estate investors use, such as activity in the real estate market, cost of living, and job growth.