On the Market

Starter homes in San Antonio have all but disappeared, warns new report

San Antonio is one of the most difficult cities to buy a home due to a lack of inventory.

Photo courtesy of Phyllis Browning Co.

It’s becoming increasingly difficult to own property in San Antonio. Not only is there a lack of housing availability but there’s also a lack of affordable options — and it’s only getting worse. A recent report from Trulia helps to outline exactly how bad the shortage is for the Alamo City.

The real estate site looked at the 100 largest U.S. metros to dig deeper into inventory and home buying trends over the past four years. It seems that there is a strong correlation between affordability and availability, two factors going against San Antonio.

This is being played out most visibly with starter homes (typically the first house an individual or family can afford to purchase) and their scarcity. While 95 cities out of the 100 have shown a decrease in availability, San Antonio has witnessed one of the largest decreases in the nation.

From January 2012 to March 2016, the amount of starter homes available in San Antonio decreased by 86.2 percent, the second worst decrease in the entire country. To give some perspective, in 2012 San Antonio had 3,097 starter homes on the market, but as of March 2016, there were only 426 starter homes available.

Our Texas neighbors in Austin and Houston are also among the worst cities for prospective homebuyers. Austin had the third highest decrease in starter homes, at 82.9 percent. Houston, at No. 8, experienced a 74 percent decrease. The city that saw the largest decrease in starter homes was Salt Lake City, with an 87.9 percent decrease and an inventory of only 151 starter homes in 2016.

According to Trulia, the supply of starter homes is being affected by the increase of investor-owned property in San Antonio. This not only drives up prices of starter homes but also trade-up and premium homes, making those properties scarce as well.

It doesn't appear that inventory will get better any time soon. With almost 140 people moving to San Antonio each day, there’s added pressure for real estate opportunities in the city. So if you’re in the market to buy a home, you’ll want to hire a great agent — and prepare to act quickly — as 426 available starter homes makes for some steep competition.

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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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