San Antonio remains one of the fastest-growing cities in Texas, attracting new residents with its affordable home prices, strong job market, and high quality of life. The city’s real estate market has seen steady growth, with a projected 1.3% increase in median home prices this year. In 2024, San Antonio recorded over 35,000 home sales—a 7% increase from the previous year—signaling a healthy demand despite shifts in the housing landscape. Inventory has also expanded, with active listings rising by 12.7% in early 2025, providing buyers with more options.

While affordability remains a key concern due to rising mortgage rates, San Antonio continues to be one of the more budget-friendly metropolitan areas in Texas. The city’s strong job market, bolstered by industries such as healthcare, military, and technology, plays a crucial role in maintaining steady real estate demand. Compared to other major Texas cities like Austin or Dallas, San Antonio offers a more attainable entry point for both first-time buyers and investors.

Home prices in San Antonio are expected to continue their upward trend, though at a more moderate pace than in previous years. The combination of increased housing inventory and higher mortgage rates has slowed rapid price acceleration, but demand remains strong. The median home price in San Antonio Central sits at approximately $228,036, reflecting a 1.3% annual increase. While the double-digit appreciation seen in 2021 and 2022 has tempered, homeowners can still expect steady gains in property value.

A major factor driving home prices is the city’s economic growth. With a low unemployment rate and job opportunities in emerging sectors, new residents continue to flock to San Antonio. The cost of living remains lower than the national average, making it an attractive option for those relocating from higher-priced markets. Neighborhoods like Alamo Heights, Stone Oak, and Southtown have seen particularly strong appreciation, making them top picks for buyers looking to invest in long-term value.

One of the biggest concerns for homebuyers in 2025 is affordability, largely influenced by mortgage rates. Interest rates are expected to remain in the range of 6.5% to 7.2%, which, while higher than the record lows of 2020 and 2021, are still manageable with the right financial strategies. Buyers are increasingly utilizing builder incentives such as interest rate buydowns and exploring adjustable-rate mortgage (ARM) options to offset higher borrowing costs. Additionally, various first-time homebuyer programs in Texas continue to provide down payment assistance and lower interest rates for qualified applicants.

For those searching for more affordable options, areas like Converse, Cibolo, and Schertz offer competitive home prices while still providing easy access to the city’s core. The growing supply of new construction homes in these suburban communities also gives buyers the opportunity to secure modern homes with energy-efficient features at competitive prices.

San Antonio’s real estate market is transitioning toward a more balanced environment. With housing inventory increasing by 12.7% year over year, buyers have more choices and negotiating power than in previous years. The average days on market for homes has extended to 50-60 days, a sign that sellers may need to price their homes more competitively to attract offers.

For sellers, this means that while homes are still selling, strategic pricing and staging are crucial. Well-maintained homes in desirable neighborhoods continue to move quickly, particularly in high-demand areas like The Dominion, Alamo Ranch, and Helotes. However, sellers should be prepared for more negotiations and longer marketing times compared to the frenzied bidding wars of 2021 and 2022.

On the buyer side, increased inventory presents an opportunity to shop around and avoid overpaying. While home prices are still rising, the slower pace of appreciation allows for more thoughtful decision-making. With mortgage rates expected to stabilize later in the year, buyers who act early may secure better financing terms before potential rate fluctuations.

New construction homes remain a popular choice for buyers looking for modern features, energy efficiency, and builder incentives. The San Antonio metro area has seen a surge in new developments, particularly in suburban and master-planned communities. Builders are responding to demand with a variety of housing options, ranging from entry-level homes to luxury estates.

Some of the most sought-after new home communities in 2025 include Davis Ranch on the Far West Side, which offers family-friendly amenities and excellent schools; Veramendi in New Braunfels, a master-planned community featuring resort-style living; and Meyer Ranch in Spring Branch, which appeals to those seeking Hill Country views and spacious lots. Many builders are offering closing cost assistance, rate buydowns, and flexible financing options to attract buyers in this evolving market.

The increasing availability of new construction also helps balance supply and demand, preventing home prices from skyrocketing. Buyers who prioritize brand-new homes with warranties and modern amenities may find great opportunities in San Antonio’s expanding suburban areas.

San Antonio offers a diverse range of neighborhoods catering to various lifestyles and budgets. In 2025, several areas stand out as prime choices for homebuyers and investors alike.

Best Neighborhoods for Homebuyers:

• Alamo Heights – Known for its historic charm, highly rated schools, and upscale homes, this area remains a top choice for families.
• Stone Oak – A suburban haven offering excellent amenities, top-tier schools, and modern housing options.
• Southtown – Perfect for those seeking an urban lifestyle with walkability, vibrant culture, and a mix of historic and modern homes.

Top Investment Areas:

• Downtown San Antonio – With strong rental demand and ongoing development projects, this area offers promising long-term appreciation.
• West San Antonio (Potranco area) – Rapidly growing with new home communities and commercial expansion.
• New Braunfels – One of the fastest-growing cities in Texas, offering a mix of affordability, quality of life, and real estate appreciation potential.

For those considering investment properties, San Antonio’s rental market remains strong, particularly in areas near military bases, universities, and major employment hubs.

For buyers, 2025 offers favorable conditions with increased inventory, slowing price growth, and potential mortgage rate stabilization. Those looking to purchase should take advantage of the growing housing supply before demand pushes prices higher again.

For sellers, strategic pricing and proper home preparation are more important than ever. While San Antonio’s market is still growing, sellers may need to be flexible with negotiations to attract serious buyers. Homes in prime locations with modern upgrades and desirable amenities continue to sell quickly.

Overall, San Antonio’s real estate market remains strong, presenting opportunities for both buyers and sellers.