San Antonio Real Estate Market Trends 2024

As we step into 2024, the San Antonio real estate market is showing signs of continued growth and transformation. Known for its affordability and diverse housing options, the city has attracted a wide range of buyers, from first-time homebuyers to retirees and investors. Here's a look at the key trends shaping the San Antonio real estate market in 2024 and what they mean for buyers, sellers, and investors.

1. Steady Price Growth

San Antonio has seen consistent home price growth over the past few years, and this trend is expected to continue in 2024. While prices have not skyrocketed like in some other Texas cities such as Austin or Dallas, they have risen steadily, making San Antonio a stable market for long-term investment.

• Median Home Prices: The median home price in San Antonio has increased year-over-year, but remains relatively affordable compared to other major Texas cities. In 2024, experts predict moderate price growth, with increases of around 4-6%, depending on the neighborhood.
• Affordability: Despite the price increases, San Antonio is still one of the most affordable large cities in Texas. This affordability continues to attract buyers from higher-cost areas like California and the Northeast.

2. High Demand for Single-Family Homes

Single-family homes remain the most sought-after property type in San Antonio. This demand is driven by both local buyers and out-of-state transplants looking for more space and a family-friendly environment. The suburbs around San Antonio, such as Stone Oak, Alamo Ranch, and Helotes, are particularly popular with families looking for homes with larger lots and access to good schools.

• Inventory Challenges: While demand is high, inventory remains relatively low, leading to competitive market conditions. Buyers should be prepared for potential bidding wars, especially in desirable neighborhoods.
• New Construction: To meet demand, new construction is booming in San Antonio, particularly in the northern and western suburbs. Builders are working to provide more options for buyers, from affordable entry-level homes to luxury properties.

3. Increased Interest from Millennials

Millennials are playing a big role in the San Antonio real estate market in 2024. As more millennials enter their prime home-buying years, they are drawn to the city for its job opportunities, lower cost of living, and family-friendly neighborhoods. Areas like The Pearl District, Tobin Hill, and Southtown are particularly appealing to younger buyers for their walkability, proximity to restaurants and entertainment, and trendy housing options.

• First-Time Buyers: Many millennials are entering the market as first-time buyers, seeking affordable homes with modern amenities. They are drawn to both newly built homes in the suburbs and historic homes in revitalized urban areas.
• Work-from-Home Influence: The rise of remote work continues to shape the market, with buyers looking for homes that offer office spaces and more room to accommodate work-from-home needs.

4. Strong Rental Market

San Antonio's rental market remains strong, with high demand for both single-family rental homes and apartments. The city's growing population, combined with steady job growth, has kept the rental market competitive, with vacancy rates remaining low.

• Rental Prices: Rents in San Antonio have been steadily increasing, though they are still more affordable compared to other Texas cities like Austin or Houston. In 2024, rent prices are expected to continue rising, driven by high demand and limited rental inventory.
• Investors: Investors are increasingly looking at San Antonio for rental properties, particularly in neighborhoods close to downtown and around major employers like military bases and hospitals. With stable rent growth and a high return on investment, San Antonio is becoming a hotspot for real estate investors.

5. Shift Toward Sustainability

Sustainability and energy efficiency are becoming more important to San Antonio buyers in 2024. As awareness of environmental issues grows, many homebuyers are looking for properties with energy-efficient features, solar panels, and smart home technology that can reduce utility costs and carbon footprints.

• New Developments: Builders are responding to this demand by incorporating green building practices and offering homes with eco-friendly features such as energy-efficient appliances, insulation, and windows.
• Retrofits: Homeowners looking to sell are increasingly making eco-friendly upgrades to appeal to environmentally conscious buyers. These upgrades can also help sellers fetch higher prices as green homes often have higher resale values.

6. Continued Growth in the Suburbs

While downtown San Antonio remains a hub for younger professionals and renters, the suburbs continue to see the most significant growth in 2024. Areas like Stone Oak, Cibolo, Schertz, and Alamo Ranch are attracting families and professionals seeking more space, better schools, and a suburban lifestyle with proximity to city amenities.

• New Developments: Many of these suburbs are seeing rapid development, with new housing communities, schools, and shopping centers being built to accommodate the growing population.
• Infrastructure Improvements: As more people move to the suburbs, infrastructure projects are underway to improve transportation and connectivity, making these areas even more attractive for buyers.

7. Stable Mortgage Rates

In 2024, mortgage rates are expected to remain relatively stable, though they may see slight increases as the Federal Reserve manages inflation. While rates are higher than they were during the low-interest periods of 2020-2022, they are still historically low and affordable for most buyers. This stability in mortgage rates makes homebuying more accessible and encourages continued market activity.

Conclusion

San Antonio’s real estate market in 2024 is poised for steady growth, making it an excellent time for both buyers and sellers to act. With continued demand for single-family homes, a strong rental market, and increasing interest from millennials and investors, San Antonio offers a wealth of opportunities for those looking to make a move in real estate.

If you're thinking about buying, selling, or investing in the San Antonio real estate market in 2024, reach out to Brad Burnes, a local Realtor with extensive market knowledge and experience. Brad can help you navigate the competitive market, whether you're searching for your dream home or an investment property. Contact Brad Burnes today to get started!