News Summary
A recent report highlights that residents in San Antonio can save around $500 a month by renting instead of owning a home. Homeowners face median monthly costs of $1,784, while renters average $1,284, ranking the city 119th nationwide in cost-effectiveness for renting. The report also emphasizes the hidden costs of homeownership, as many homeowners are unaware of their rights regarding property tax evaluations. Despite rising mortgage rates, new trends indicate a growing interest in homeownership among younger generations, particularly in 2024.
San Antonio – A recent analysis of housing costs shows that residents of San Antonio can expect to save approximately $500 each month by renting rather than owning a home. This finding comes from a report by SmartAsset, titled “Renting vs. Buying: How Housing Costs Compare Across America,” which examined median monthly housing costs across 342 large cities in the United States.
The statistics reveal that homeowners in San Antonio typically face median monthly housing costs of $1,784, while renters only pay around $1,284 per month. The difference in expenses places San Antonio at rank 119 on the list of cities where renting is more cost-effective than owning.
Expanding beyond local figures, Newark, New Jersey, tops the list where homeowners experience the steepest costs, spending $2,641 monthly compared to renters at $1,341, creating a staggering difference of $1,300. This comprehensive analysis factors in vital costs such as utilities, insurance, maintenance, and property taxes, providing a clearer understanding of the ongoing costs associated with both renting and homeownership.
In nearby New Braunfels, homeowners face slightly lower costs than those in San Antonio, with median monthly payments around $2,072 for homeowners and $1,809 for renters, leading to a monthly difference of $339.
Impact of Hidden Homeownership Costs
The potential hidden costs associated with homeownership can significantly affect residents transitioning from renting to owning without adequate knowledge. A study conducted by Ownwell highlights that 53% of homeowners in Texas lack awareness of their right to protest property tax evaluations, a crucial factor for maintaining reasonable housing costs.
Homeowners are taxed based on their assessed market value, and over-appraised homes can lead to inflated taxes. In Bexar County, deadlines allow homeowners to file a protest with the Bexar Appraisal Review Board by May 15 each year. Alarmingly, more than half of Texas homeowners expressed surprise at their last property tax bill.
Furthermore, homeowners who utilize tax protest services encounter no penalties if their protest does not succeed, yet they stand to save significantly. Agencies specializing in tax protests report a high success rate, with Ownwell indicating an 86% success rate in reducing homeowners’ taxes. Utilizing home pyramids may ease the burden of these protests, while both DIY approaches and professional services can lead to meaningful financial savings.
Market Trends for Homebuyers
First-time homebuyers, in particular, can benefit from education concerning market values, as they may negotiate property assessments based on their purchase prices. Despite high mortgage rates and increased insurance expenses, the San Antonio area has seen a noticeable rise in home sales. In 2024, home sales increased by 7% compared to the previous year, even though the overall number of sales remains lower than during the peak pandemic years from 2020 to 2022.
The median sales price for homes in San Antonio reached $308,101 in 2024, marking a significant elevation of 32.4% since 2019. In January of the same year, sales increased by 6.6% from January of the previous year. New home builders are responding to the shifting market by offering financial incentives aimed at attracting buyers.
Notably, Gen Z is making its presence felt in the housing market, contributing to over 14% of mortgage applications in San Antonio in 2024, demonstrating an interest in homeownership among younger demographics despite existing challenges. This trend marks an important shift as new generations seek to enter the housing landscape amidst economic fluctuations.
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Additional Resources
- CultureMap San Antonio
- Wikipedia: San Antonio
- San Antonio Express-News
- Google Search: San Antonio housing market
- KSAT San Antonio
- Google Scholar: San Antonio real estate
- Fox San Antonio
- Encyclopedia Britannica: San Antonio
- Planetizen
- Google News: San Antonio real estate news
