Are you buying a home or real estate investment property in San Antonio? Do you want to learn more about the San Antonio housing market? Then watch this video!
Austin gets all of the attention. But the smart real estate investors are looking at San Antonio. Home prices in San Antonio are extremely affordable, with a typical price of $226k in February 2021 according to Zillow. Compare that to $408k in Austin – almost 2x as much!
Affordable acquisition prices allow for higher returns to investors. Yields and cap rates in San Antonio are higher than those in Austin, giving investors more money and cash flow up front. For instance, based on data from Zillow, the typical rental yield in San Antonio is 7.1% compared to 4.4% in Austin.
The other thing that San Antonio has going for it is supply constriction. New permitting and construction is more moderate compared to other markets in Texas, making it less likely that a supply glut will lower future rent and value growth.
The most expensive neighborhoods are located in the northern part of the metro area. New Braunfels, Boerne, and Alamo Heights have the highest prices. The lowest home prices are in neighborhoods to the south and east of Downtown San Antonio. The highest levels of growth and appreciation have been in these poorer, low-price neighborhoods.
What neighborhoods will do the best into the future? San Antonio home buyers and investors should target ZIP codes with walkability, density, high income growth, and affordability. These type of neighborhoods have the best chance at providing secure, stable returns into the future.
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0:00 Under the Radar
2:17 San Antonio v. Austin
3:37 Affordability Comparison
6:07 Looking at Rental Yield
8:08 Supply v. Demand
11:03 Best Locations to Buy?
13:59 Where’s the Appreciation?
16:53 Multi-Pronged Approach
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