SAN ANTONIO – In recent years, the journey to homeownership in San Antonio has transformed significantly, presenting new challenges for first-time buyers. With rising home prices, prospective homeowners often find themselves weighing what they can realistically afford to compromise on—be it space, location, or the condition of the property.
According to a comprehensive analysis conducted by Texas A&M University, the price benchmark for starter homes across Texas has surged dramatically, climbing from approximately $155,000 in 2015 to an estimated $275,000 by 2026. This represents a staggering 77% increase in just over a decade. Similarly, homes in the trade-up segment have experienced a 63% rise in prices during the same period.
In defining a starter home, the analysis considers the threshold that separates the lowest third of home sales from the rest of the market, rather than the median price typically paid by first-time buyers. In the San Antonio area, Erin Cestero, president of J.B. Goodwin Realtors, indicated that the local median home price hovers around $300,000. First-time buyers often look in the range of $175,000 to $250,000, a figure that can vary significantly depending on the neighborhood and type of home.
“This range can vary widely,” Cestero noted. “For some buyers, that means condominiums with desirable amenities. For others, it could be two- to three-bedroom homes.” She emphasized that price points fluctuate considerably based on the area of San Antonio.
The disparity in home prices across the city is quite pronounced. Data from Realtor.com reveals a median asking price of $380,000 in the North Side, compared to just $215,000 on the Southeast Side. ZIP codes such as 78245, 78253, 78254, and 78252 show median listing prices ranging from approximately $249,924 to $346,375.
Taylor Collins, an associate professor of economics at the University of the Incarnate Word, highlighted an emerging trend: while demand for smaller homes is on the rise, the new construction market is increasingly favoring larger homes. “Demographics such as older adults looking to downsize, single-person households, and families without children are all vying for smaller homes,” Collins explained. This competition makes it challenging for first-time buyers to secure a property.
For those who manage to find a home within their budget, it’s essential to consider that the listing price is merely one aspect of the overall financial picture. Monthly costs can include property taxes, homeowners insurance, private mortgage insurance (PMI) for certain loans, homeowners association fees, and potential repair expenses.
Cestero pointed out that buyers might discover financial opportunities through concessions from sellers or builders, such as assistance with closing costs or interest-rate buydowns. “We’re observing that both resale sellers and new construction communities are willing to cover closing costs,” she said. “This reduces the amount of money buyers need to bring to the closing table.”
Ultimately, Cestero emphasized the importance of focusing on the total monthly payment and a buyer’s individual budget, rather than fixating solely on the purchase price. As the San Antonio housing market continues to evolve, understanding these dynamics can empower first-time buyers to navigate their home buying journey more effectively.
