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Kim_Gatley
Kim Gatley
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enior Vice President & Director of Research at REOC San Antonio

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San Antonio wealth still at home in the suburbs

redhouseoutlineWith companies such as Valero Energy Corp., Rackspace Hosting Inc.Harland Clarke, Tesoro Corp., USAA, Security Service Federal Credit Union and NuStar Energy LLP headquartered in the northern rim of the city, it’s no surprise that that’s where you’ll find the most affluent neighborhoods and the most expensive submarkets across San Antonio.

Nine of the 10 most affluent ZIP codes in the San Antonio area are outside Loop 1604 to the north, northwest and northeast of San Antonio International Airport. The other ZIP code, 78248, borders Loop 1604 on its northern edge.

Much of the city’s new development is in the northwestern submarket around I-10 and Loop 1604, where the average home price has soared in recent years to $617,013 — well above the average San Antonio home price of $231,116.

At the same time, however, there are signs that some of that affluence may be moving south.

San Antonio Board of Realtors Chairman Mary Ann Jeffers said the city’s growth in recent years has resulted in neighborhoods across the city expanding rapidly. Meanwhile, an increase in new home construction and a rising condominium market have triggered shifts among affluent homebuyers.

“Some buyers prefer the location of downtown and opt for a smaller home or condo to be close to the city, while others prefer a larger lot in the suburbs,” Jeffers said. “San Antonio has seen many new homes and condos being developed around the city as well as in the downtown area, and people are flocking to each of these areas.”

Within the next couple of years, several condominium developments will be hitting the market at prices that had previously only been attached to sprawling estates. Varga Endeavors’ Southtown for-sale developments — the three of which combined will deliver more than 65 units — are set to command an average of $400,000 for 1,500 square feet.

Steve Nivin, chief economist for the San Antonio Hispanic Chamber of Commerce and director of Saber Research Institute at St. Mary’s University, has conducted a multitude of economic impact studies, and he is just now beginning to see accelerating demand for — and values in — San Antonio’s urban core.

That is not to say that the suburbs have lost their luster. With most of the highest-paying jobs in San Antonio concentrated in the city’s northwestern quadrant, it follows that this submarket continues to boast a high-income population that is living in high-priced homes.

Click to read entire article: San Antonio wealth still at home in the suburbs (San Antonio Business Journal, 11-20-15)

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