Shutterstock / Sean Pavone
A report published last year projected that San Antonio home values would depreciate more than 30%. However, some industry experts say that's unlikely.
Amir Korangy, publisher of online real estate media publication Real Deal and adjunct professor of real estate media and information at Columbia University, told the Current San Antonio's economic fundamentals mean it's unlikely to see as dramatic a housing downturn as Austin.
"I would expect San Antonio to be more steady and less prone to fluctuations than Austin — probably remaining a generally more affordable option and featuring less speculation," Korangy told the Current in an email. "I would opt for San Antonio as a relative safe harbor over the balance of this year."
Over the past few months, the Alamo City has been named one of the top 10 real estate markets to watch in 2023, with two local zip codes previously ranked among the hottest for homebuyers last year. Most recently, it was named among the best cities to retire.
Even so, San Antonio's real estate market — like most across the nation — has cooled as interest rates increased. In January, there were 30% fewer sale closings on single-family homes than a year ago, according to the latest market report by the San Antonio Board of Realtors.
Korangy cited San Antonio's host of stable industries, including healthcare, military and the city leadership's push into cybersecurity, as reasons why its housing market is likely to remain relatively stable despite the slip.
His predictions are vastly different from a report published last year forecasting that homes in San Antonio could decline in value by more than 30%. Instead, Korangy said the Alamo City will likely see a bigger drop in rental prices than in home values.
"It should be well-suited to work through a slowdown," Korangy said. "However, especially on multi-family, which has a robust pipeline and is poised to begin slow increases in rental rates, perhaps providing pause that will bring some equilibrium."
Korangy added that the city's slew of development and the desirability of areas such as the Pearl District and Tobin Hill are likely to withstand economic headwinds.
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