Real Estate Rumblings

Millennials are now majority of homebuyers in San Antonio, says new report

Millennials make up the majority of homebuyers in Houston, according to a new report.

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Millennials now make up the largest group of homebuyers in San Antonio and across the nation, and are choosing to lay down roots in big cities and up-and-coming metropolises versus suburbs and small towns.

In a January 6 report, online marketplace LendingTree ranked the 50 most popular metro areas for millennials. Though San Antonio lands in the bottom half at No. 36, it's still a mecca for 20- and 30-somethings searching for a new home.

To determine the rankings, LendingTree analyzed mortgage purchase requests made on their own platform across the nation, beginning January 1 through December 15, 2020.

Though less wealthier than their Baby Boomer and Gen X counterparts, LendingTree points to the current record-low mortgage rates spurred by the pandemic as a reason for the new swath of millennials looking to buy a home.

"What LendingTree [also] found was that millennials (defined as anyone born between 1981 and 1996) make up a majority of potential homebuyers in most of the country’s largest metros," the report says. "Location is typically a primary factor to consider when buying a home, but the pandemic has affected many aspects of the U.S. economy including various industries and local job markets."

San Antonio is the last Texas city in LendingTree's report. At No. 34, millennials make up 51.46 percent of homebuyers in the Alamo City, and have an average age of 31 years, 7 months. As for financing, buyers typically bring $25,867 and finance an average of $203,710.

That's well behind Austin, which takes eighth place on the list. Despite a crippled hospitality industry, the Central Texas job market is still considered strong, and the city drew even more attention in 2020 as a cavalry of California-based celebrities decamped to Austin.

Millennials make up 57.34 percent of homebuyers in the Capital City with an average age for a potential buyer of 31 years, 4 months and an average credit score of 687. When it comes to purchase power, Austin homebuyers bring an average of $47,940 as downpayment, and borrow an average of $288,461.

At No. 26, millennials make up 53.77 percent of people looking to purchase a home in Houston, and boast an average age of 31 years, 7 months and a credit score of 660. When it comes to financing, young homebuyers bring an average downpayment of $34,361 and borrow $231,300.

Right behind Houston is Dallas at No. 28. Millennials account for 53.7 percent of homebuyers in Big D, and have an average age of 31 years, 6 months. Millennial buyers bring an average downpayment of $34,815 and borrow $245,355 to finance their investment, says LendingTree.

Rounding out to the top 10 largest metros ranked by millennial popularity: San Jose, California (No. 1); Boston (No. 2); Denver (No. 3); Minneapolis (No. 4); Buffalo, New York (No. 5); San Francisco (No. 6); Salt Lake City (No. 7); Pittsburgh, Pennsylvania (No. 9); and New York City (No. 10).

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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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