The San Antonio housing market forecast for 2020 provides solid reasons to put resources into this sizzling market. The home prices in the San Antonio housing market is slated to increase all throughout the remainder of 2020. San Antonio home prices are expected to rise by 3.3% in 2021. Additionally, San Antonio is already home to roughly 1.9 Million people and its suburbs are home to another million people! Military City, USA is now the 6th largest city in the United States.
These advantages make the San Antonio housing (and business) market far too big to ignore. There exist a number of other factors that make San Antonio a much more attractive real estate market than perceived “hotter” markets such as Dallas, Austin and Houston. Below are eight great real reasons to be in San Antonio NOW !
1. Rapid Growth
San Antonio is the seventh largest city in the United States and Wikipedia states that it was the fastest growing city among those ranked in the top ten. The San Antonio real estate market is witnessing property valuations spike due to challenges of meeting the increasing demand of everyone moving here for work from primarily California and the New England states. The blazing San Antonio housing market is doing its best to cope with roughly 2% growth year over year.
2. Dynamic Demographic Momentum
The median age of a San Antonio resident is 33 while the average U.S. resident is nearly 38 years old and the average household in San Antonio has 2.8 people while the U.S. household has only 2.6. These stats clearly reflect a city that is younger and has more children than average city. With San Antonio’s rapidly growing economy, many of the children born here will likely stay here, which will continue to fuel the San Antonio real estate market for future generations.
3. Clear Growth Channels
San Antonio is situated at the intersection of US Interstate 35 and US Interstate 10. This location not only makes San Antonio a major transportation corridor, but it also provides clear lines of growth along both US Interstates. Currently, businesses and, later, residential development are expanding along these lines rapidly. As industrial warehouse and service businesses expand along these major interstates, single family home and condo developments will follow.
4. The Military Rental Markets
Those who who can afford to invest in rental real estate in the San Antonio will benefit from the tremendous military presence in our city. Fort Sam Houston is inside the city limits. Lackland Air Force Base, Randolph Air Force Base, Camp Bullis and Camp Stanley are also located in close proximity to Central Business District. The transient nature of military personnel translates into an extremely robust residential real estate market because many don’t know exactly where they’ll be sent to for future assignments.
5. The Lure of Employment
The primary catalyst for San Antonio developing so quickly is the rapidly growing job market. Anytime a military base closes, it can be a serious disruption to the local economy for most cities. However, when San Antonio closed Kelly Air Force Base and later turned it into Port San Antonio, the aerospace and industrial park now provides as many high paying jobs as the closed military base did. To illustrate the attractiveness of San Antonio to corporate Amercia – Six Fortune 5000 companies are located here.
Toyota built a manufacturing plant in San Antonio. Companies that supply the auto industry like Indo-MIM are moving in to supply companies like Toyota. This adds to the employment base, while simultaneously diversifying the local workforce beyond our core industries- tourism and defense. In sum, the San Antonio real estate market is fueled by many moving in who hope to find work even if they don’t currently have a job.
6. Healthy Profit Margins for Landlords
San Antonio has ample affordable housing because demand greatly outstrips the supply and new projects seem to always be underway. This has created a large number of renters who need to pay a premium of rent for apartments or single family homes. Essentially, there continually exists a lack of housing relative to demand. A supply-demand market is “balanced” when there is a 6 month home inventory. Since San Antonio typically only a two month inventory, we know that demand is dramatically outstripping supply in Military City, USA. This is a very good thing for investor/landlords in all commercial real estate asset classes here in San Antonio, Texas.
7. Redevelopment Trend Occurring on the San Antonio’s South Side
For the past 10 years, San Antonio’s new construction has been focused on the north side of the city. Areas like Stone Oak and Shavano Park have grown dramatically, while the south side has been largely overlooked. However, current low prices for land and property located in such a short distance of downtown is leading to major redevelopment in the are south side of San Antonio. Infrastructure (EG. sewers and new roads) continue to be built on the south side of San Antonio – especially long neglected areas barely inside Loop 410. The southern riverfront is also attracting a great deal of interest as resorts and hotels develop along the portion of the San Antonio known as Mission Reach.
8. Texas is a “Landlord Friendly” State
The state of Texas has an effective and simplified holdover tenant eviction process. Additionally, leases are able to list repairs that the tenants must make at their own expense. Lastly, Texas doesn’t set limits on security deposits and the state doesn’t require owner-landlords to have a specific security device in place.