MARKET WATCH

Zillow data shows big dip in San Antonio home values in March

A new Zillow report says that San Antonio home values have dropped.

Photo courtesy of Opendoor

In what's usually one of the most competitive home-buying seasons, San Antonio's housing market took an ominous turn in March. According to the latest report from real estate marketplace Zillow, Alamo City saw a slowdown in price growth and a significant increase in available inventory at the beginning of spring.

The report outlines a disconnect between San Antonio homeowners who are eager to list their properties and buyers who are hesitant to dive into the market. In March, a significant number of homes were listed in the San Antonio metro area, contributing to a 6.8 percent jump in new listings and a 14.5 percent increase in inventory compared to the previous year.

San Antonio was also one of only five major metros nationwide where home values declined in March and the only metro outside Florida. Zillow's home value index fell 2.7 percent for Alamo City residential properties year over year.

This shift occurred even as mortgage rates reached a multi-year low of 6.65 percent during the same month. Nationally, home price growth stalled. The typical home value nationwide only saw a modest 0.2% month-over-month increase in March.

"More sellers came out to test their luck as rates ticked down in March, but home sales didn't keep up," said Zillow chief economist Skylar Olsen via a news release. "Buyers — especially first-timers without equity to pour into their down payment — continue to struggle with affordability and now are facing even higher levels of uncertainty."

Affordability remains a key concern for prospective San Antonio homeowners. A 2024 report from Zillow stated that Alamo City residents needed 60 percent more income since 2020 to afford home ownership.

San Antonio sellers may mirror the national trend to appeal to more buyers. Zillow says over 23 percent of listings nationwide saw a price cut in March, the highest share for any March since at least 2018. Though the overall numbers suggest an economic chill, local buyers may find more options and potentially more negotiating room as the spring buying season progresses.

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housing cost analysis

How much money San Antonians save by renting instead of owning a home

Photo by Vitalii Onyshchuk on Unsplash

Living in San Antonio doesn't come cheap.

The affordability of homeownership seems to be a hot topic this year, and a new housing cost analysis has revealed San Antonio residents are saving $500 per month by renting rather than owning their homes.

The 2025 SmartAsset report, called "Renting vs. Buying: How Housing Costs Compare Across America," examined the median monthly homeownership and rent costs in 342 of the largest U.S. cities.

The study's findings revealed San Antonio homeowners spend a median $1,784 on their monthly housing costs, whereas renters spend about $1,284 in comparison.

San Antonio ranked No. 119 in the report's list of cities where homeownership is more expensive than renting.

Newark, New Jersey ranked No. 1 with homeowners spending $2,641 per month on their homes while renters only pay $1,341 a month, reflecting a whopping $1,300 difference.

As any San Antonio-area resident knows, the real cost of living in the city doesn't just stop at the monthly mortgage or rent price. SmartAsset also factored in the cost of utilities, insurance, maintenance, and taxes to show the most accurate representation of the ongoing costs of renting versus owning a home.

"On the rental side, the cost of utilities can add a consistent, considerable amount to your costs," the report said. "For homeowners, mortgage costs are padded not only by utilities but homeowners’ insurance, property taxes and maintenance costs."

Renters in New Braunfels (No. 255) save slightly less money per month than their homeowning counterparts do, though both monthly costs are still lower than San Antonio's. The report found homeowners in the suburb spend $2,072 per month to own and maintain their homes, while renters spend only $1,809 a month. That means New Braunfels homeowners are paying $339 more per month to own their homes.

Residents in any major city who are considering buying their first house must consider all monthly financial costs before deciding to leave the rental life behind. Potentially large bills, such as property taxes, can sneak up on some homeowners if they don't educate themselves properly prior to buying a home.

"These hidden costs can add up and change the dynamics of tradeoffs between the flexibility of renting versus the security of owning your own home," the report added.

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