Trends & News San Antonio Real Estate Market Trends 2020 by Hamza Abdul-Samad November 16, 2019June 27, 2022 by Hamza Abdul-Samad November 16, 2019June 27, 2022 As the largest of the contiguous states, the Texas real estate market is home to a variety of housing markets. There are many hallmarks of the Texas real estate market, particularly cheap house prices, high rental income, and steady property appreciation. One of the state’s top-performing markets follows these trends, and many others, to a tee. The market of discussion is the San Antonio real estate market. What are the San Antonio housing market trends in 2020? What are the best San Antonio neighborhoods for investment? Keep reading to find out! Related: How Much Will Investing in Texas Real Estate Cost? Is San Antonio a Good Place to Invest? If real estate in San Antonio has not been on your radar as an investor, you might be wondering: Is San Antonio a good place to invest? The short answer is yes. The San Antonio real estate market is currently one of the best markets in 2019 and is ranked highly in overall real estate prospects for 2020, according to the PwC. We here at Mashvisor will also prove to you, dear real estate investor, that the San Antonio housing market is exceptional. Here is the investment data of the average San Antonio real estate investment, according to Mashvisor’s investment property calculator. To learn more about how our rental property calculator works, click here! Pricing Median Property Price: $282,120 Price per Square Foot: $206 Price-to-Rent Ratio: 15 Traditional Investing Rental Income: $1,564 Cap Rate / Cash on Cash Return: 1.1% Airbnb Investing Rental Income: $2,478 Cap Rate / Cash on Cash Return: 3.1% Occupancy Rate: 55% Related: The Best Real Estate Investment Calculator of 2020 You might notice that we have included data about Airbnb San Antonio vacation rentals. This begs an important question, is Airbnb legal in San Antonio? Is Airbnb Legal in San Antonio? Fortunately for San Antonio real estate investors, Airbnb is legal in the San Antonio real estate market. These are the most notable San Antonio Airbnb laws (learn more about them here): Short-Term Rental Types San Antonio’s Airbnb regulations classify vacation rentals into two types, each being rented for less than 30 days. Type 1 rentals are owner-occupied. A non-owner occupied rental, on the other hand, is considered a Type 2 rental. Permit Application A San Antonio Airbnb host must register an Airbnb property with a permit. The application comes with a $100 registration fee. Hosts must renew the permit every 3 years. Renewals come with an additional $100 fee. Investors also require proof of insurance and proof of registration for permit applications. Taxes Hosts in the Airbnb San Antonio real estate market are also required to pay a combined 16.75% Hotel Occupancy Tax (HOT). The HOT includes many taxes, such as the City Lodging Tax (9%), State Lodging Tax (6%), and the Bexar County Lodging Tax (1.75%). Find a Profitable Airbnb Investment Property San Antonio Real Estate Market Trends for 2020 Aside from being a profitable rental market, there are many trends the San Antonio real estate market has that will benefit property buyers and landlords. Here are the five most notable real estate trends of the San Antonio housing market. Affordable House Prices and Cost of Living The most striking feature of San Antonio homes for sale is how inexpensive they are. As seen from Mashvisor’s data, the median San Antonio investment property price is $282,120. This is considerably lower than both the national median price of $325,200 and the state median of $324,836. San Antonio also exhibits a low cost of living, which is beneficial to both real estate investors and tenants. San Antonio’s cost of living is 3.3% lower than the US, as it has the 36th lowest cost of living in the nation. The cost of living in the San Antonio real estate market is also lower than in multiple cities in Texas. According to NerdWallet, based on the Texas average household income of $70,000, San Antonio’s cost of living is lower than the cost of living in: Plano (by 21%) Dallas (by 20%) Midland (by 12%) Austin (by 9%) Odessa (by 8%) Houston (by 7%) Beaumont (by 7%) Conroe (by 6%) Corpus Christi (by 5%) Lubbock (by 5%) Abilene (by 4%) Nacogdoches (by 4%) Longview (by 3%) Tyler (by 3%) Waco (by 2%) High Appreciation Rate The San Antonio real estate market also benefits from a high property appreciation rate. According to NeighborhoodScout, the expected appreciation rate of the San Antonio real estate market for 2019 is 5.65%. This rate is expected to reduce in 2020 but will remain relatively high compared to the state and national rates. According to Zillow, San Antonio house prices will rise by 2.7% in 2020. Related: 5 Best Cities for Real Estate Appreciation in 2020 Economic Success The San Antonio real estate market 2020 will also continue its economic growth, a great indicator for its traditional investing market. SA’s diverse economy, with sectors in military, health care, financial services, oil and gas, and tourism, is expected to grow by 39.6% in the next ten years. This is well over the US average of 33.5%. The city also has a GDP growth rate of 4.6%, which is the third-highest among big metros, according to Business Insider. To top it all off, San Antonio has the fourth lowest unemployment rate among big metros at 2.6%, which is also considerably lower than the Texas and US average unemployment rates. Investor and Tenant Demand Demand will continue to be high in the San Antonio real estate market in 2020. Investor demand and development and redevelopment opportunities, in particular, are projected to be high, according to the previously mentioned PwC report. Real estate transactions have generated over $7.3 billion in 2018 and early 2019, and there is an expected increase in 2020. As it pertains to being a buyer’s market or a seller’s market, San Antonio is a very hot seller’s market, according to Zillow. San Antonio has also been experiencing a high population growth over many years, boosting tenant demand. From 2010 to 2018, the city’s population increased by 17.5%, adding 375,000 new residents. The interplay of these trends will lead to a significant increase in demand in the San Antonio real estate market 2020. Top-Tier Tourist Destination Airbnb San Antonio has benefited from clear and helpful legislation, which we have discussed, and from the city’s tourism. With an estimated $13.6 billion impact on the city’s economy, San Antonio’s tourism has helped Airbnb hosts obtain a huge investment profit. In 2018, Airbnb San Antonio real estate investors generated a combined $27.6 million, with an average of $105 per guest. Best Neighborhoods in San Antonio: Traditional Rental Strategy Now that we’ve discussed why you should invest in San Antonio real estate, let’s talk about where to invest in the San Antonio real estate market 2020. According to Mashvisor, the best neighborhoods in San Antonio for traditional investing are Springvale and Prospect Hill. Springvale Pricing Median Property Price: $133,633 Price per Square Foot: $111 Price-to-Rent Ratio: 9 Traditional Investing Rental Income: $1,244 Cap Rate / Cash on Cash Return: 3.3% Prospect Hill Pricing Median Property Price: $155,873 Price per Square Foot: $106 Price-to-Rent Ratio: 13 Traditional Investing Rental Income: $996 Cap Rate / Cash on Cash Return: 2.6% Best Neighborhoods in San Antonio: Airbnb Rental Strategy What about Airbnb San Antonio? According to Mashvisor, the best San Antonio neighborhoods for Airbnb investing are River Road and Gardens at Brookhollow. River Road Pricing Median Property Price: $335,000 Price per Square Foot: $202 Price-to-Rent Ratio: 18 Airbnb Investing Rental Income: $6,819 Cap Rate / Cash on Cash Return: 13.7% Occupancy Rate: 52% Gardens at Brookhollow Pricing Median Property Price: $253,750 Price per Square Foot: $148 Price-to-Rent Ratio: 13 Airbnb Investing Rental Income: $4,553 Cap Rate / Cash on Cash Return: 9.7% Occupancy Rate: 61.5% All in all, the San Antonio real estate market will be a top-tier market in 2020. To start searching for San Antonio houses for sale, CLICK HERE to start your 14-day FREE trial with Mashvisor! Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsNeighborhoodSan Antonio TXTraditional 0 FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-Samad Hamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. Previous Post 5 Ways to Find Investment Property for Sale Near Me Next Post Commercial Construction and Real Estate Development: 6 Essential Considerations Related Posts 4 Short Term Rental Market Trends for 2020 Are 3D Printed Homes the Future of Real Estate Investing? When will the US housing market prices go back to normal? Why Is Investing in the US Real Estate Market Better Than in International Real Estate? The Effects of Immigration on the US Real Estate Market Summer Real Estate Market 2020: Trends and Data 6 Trends of a Winter Real Estate Market Baltimore Real Estate Market Trends 2020 11 Cheapest Places to Live in the US in 2021 Easter – The Best Time of Year to Buy a House for Real Estate Investing Is a US Housing Bubble Coming in 2020? 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