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San Antonio among hottest markets for millennial homeownership

San Antonio is projected to be one of the hottest housing markets in the nation.

Photo courtesy of Austin Board of Realtors

Americans are increasingly nervous about homeownership, according to a new trend report from Trulia, but don’t expect that to slow growth in the Lone Star State. The real estate listings hub projects that the markets in four Texas cities — including San Antonio — will continue to boom in 2018.

To compile a list of 10 U.S. home markets expected to grow in the coming year, Trulia looked at five key factors: job growth; starter-home affordability; inbound listing searches as a gauge of a market’s popularity; vacancy rates; and the share of adult population under age 35. (The latter was looked at as part of a nationwide trend of greater homeownership among millennials.)

San Antonio grabbed the fifth spot on the report with a low share of income needed to buy a home (28.3 percent); good job growth (2.2 percent); and a large under 35 population (19.7 percent). Although Austin was relatively less affordable (47.5 percent of one’s income is needed to buy a home), steady job growth (2.3 percent) and young inhabitants (26.3 percent) secured the No. 7 ranking.

Other Texas cities with favorable outlooks include Fort Worth, coming in the sixth place slot with 2.6 percent job growth; a 30 percent share of income needed for home ownership; and 21.3 percent of the population under 35. El Paso fared the best in the state at No. 4 with the highest rate of job growth among the listed cities (2.7 percent); a low portion of income needed to buy a home (32.6 percent); and a booming populace of young adults (21.7 percent).

The rest of the list was concentrated in the South and Midwest. Grand Rapids, Michigan was listed as the top city for projected growth.

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bang for your buck

San Antonio ZIP code is 4th most affordable place for renters in U.S.

Photo by Florian Schmid on Unsplash

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Trying to afford buying a home in San Antonio is difficult enough with current mortgage rates, and doubly so if you're already paying high rent on an apartment or a house. But there are six San Antonio ZIP codes where renters can get the most bang for their buck, according to a new study by financial services company CashNetUSA.

To find the most affordable ZIP codes for renters in the U.S., analysts compared median household incomes by ZIP code to the average annual rent costs in those areas using the Zillow Observed Rent Index. ZIP codes where the average annual rental constituted the lowest percentage of median household income were considered the "most affordable."

San Antonio's 78248 ZIP code specifically stood out as the No. 4 most affordable in the country, and the No. 1 most affordable in Texas. This area encompasses the north San Antonio neighborhoods of Inwood, Forests at Inwood, Oakwood, The Park at Deerfield, Canyon Creek Bluffs, Canyon Creek Village, Blanco Village, Deerfield, Cadillac Drive, and Churchill Estates.

According to the study's findings, the average monthly cost of a rental in 78248 comes out to $1,259.17, and the median annual income of a household in the area is $122,986. Analysts then calculated that the annual rent of a home in this ZIP code only takes up 12.29 percent of a household's median income, which is the fourth-lowest in the nation.

CashNetUSA found the No. 1 most affordable ZIP code for renters nationwide is 66224 in Leawood, Kansas, where annual rent only takes a 10.57 percent cut out of a household's median annual income.

Elsewhere in Texas, two Houston-area ZIP codes – 77401 and 77094 – ranked No. 9 and No. 12 nationally, while Allen's 75013 ZIP code fell two spots behind to claim the No. 14 spot.

The most affordable San Antonio-area ZIP codes for renters
CashNetUSA further unveiled the five most affordable ZIP codes across major U.S. cities, including in San Antonio, Austin, and Houston.

Following 78248 (which took the No. 1 spot citywide) is 78261 (No. 2), which spans east of Highway 281, across Smithson Valley Road. Rent costs in this ZIP code averaged out to $1,698 per month, the report found.

Landing in the No. 3 spot is 78258, which includes Rogers Ranch, The Vineyard, Stone Oak, Summit, Hidden Canyon, and Big Springs neighborhoods. The report said average rent in the area comes out to $1,507 per month, which takes up 17.54 percent of a household's median annual income.

The remaining top two most affordable ZIP codes for San Antonio renters are located in 78259 (Encino Park, Encino Ranch, Cavalo Creek Estates, Northwood Hills, Summit at Bulverde Creek, Roseheart, Redland Woods) and 78260 in Timberwood Park, which is about 25 miles north of downtown San Antonio.

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