San Antonio Real Estate Market Analysis

San Antonio is a major city in south-central Texas. With a population of over 1.5 million people, it is the 7th most populous city in the United States and the 2nd most populous city in both Texas and the Southern United States. The city is expected to experience a population growth rate that is over two times the national rate, which is highly beneficial to current and future San Antonio real estate investors. According to NeighborhoodScout, more than 45% of residents in the city live in rental properties as opposed to owning their own homes, meaning the tenant pool for rental properties is large. Investing in a San Antonio rental property is, therefore, a great option.

Alamo City enjoys a healthy and diversified economy, with a highly-skilled workforce and strong employment growth. The defense industry is the largest employer in the region, employing over 89,000 workers. With three Air Force bases and one Army post, San Antonio is home to one of the largest concentrations of military bases in the US. The life science and healthcare sector accounts for the largest part of the city's economy, contributing approximately $40 billion to the area in 2017. Home to the South Texas Medical Center, San Antonio features a diverse mix of healthcare systems, hospitals, life science companies, research facilities, and higher education institutions.

San Antonio is the headquarters of many Fortune 500 companies, including Valero Energy Corp., Andeavor, USAA, and iHeartMedia.  It is also the headquarters of many other companies, spanning across various industries including financial services, cybersecurity and technology, new energy, aerospace, and advanced manufacturing. San Antonio’s central location within the US and business-friendly climate make it a prime destination for business relocation and expansion, and also a hub for new startups. 

San Antonio is one of America’s most popular tourist destinations, drawing more than 34 million visitors a year. The Alamo Mission in Downtown San Antonio is the top tourist attraction in Texas. Another famous landmark in the city is the River Walk, a 15-miles long walkway along the San Antonio River lined with shops, restaurants, boat tours, and hotels. Other attractions in the city include SeaWorld San Antonio, Six Flags Fiesta Texas, San Antonio Missions National Historical Park, and San Antonio Zoo. 

The San Antonio real estate market was ranked among the Top 20 US Markets to Watch by PWC in its annual Emerging Trends in Real Estate: United States and Canada 2019 report. According to the report, the strong local job market and the high concentration of young people were the main reasons behind property investors’ increasing confidence in the performance of the San Antonio housing market.  In fact, San Antonio has been attracting millennials and younger generations in recent years, and this increasing young population has been supporting economic growth in the city. Nevertheless, the rising housing costs were cited as an area of concern.