San Antonio Texas Absorption Rate?

Question

Hi! I was looking through houses in San Antonio on Zillow, and I noticed a high number of properties that are in auction, and a high number of listings showing up each day.

Would anybody know the absorption rate in San Antonio Texas right now? And what the reason might be for these properties going through auction?

Thank you!

Tamara Deering · Answer

Texas has high property taxes and the median price is rising quickly, double digit growth in most of Central Texas.  San Antonio has more options under $200k than Austin but whether they will cash flow or not is another question.  When you do your due diligence make sure that you are using the actual tax rate and that you are comparing rental rates in the same neighborhood not the same zip code or MLS area.  I will give you an example, there are two houses for sale on W. Elsmere Pl. one is listed for $98,000 and another is $1.25 million, the difference?  The road runs under major freeways, dead ends and picks back up in a different place.  To work San Antonio you have to know what's going on at a block by block level or someone is going to sell you a rental that has a convenience store across the street, a restaurant next door and train tracks two houses down.  This house is on the market for $70K and needs to be totally gutted and half the square footage removed because they are bad additions.  It will never cash flow.  So to answer your question, yes San Antonio is a great place to invest and yes there are probably easier markets to invest in Texas.

Neil Narayan · Answer

@Robert Shaw San Antonio is a huge area and the AR would be too generic to make a meaningful decision. It would be more beneficial if you could narrow down your search to a specific area i.e. zip code or neighborhood and look at the AR at that level. Otherwise your data would be too skewed.

Tamara Deering · Answer

San Antonio is a huge market that is incredibly diverse.  On average there are between 4 and 5 months of inventory available.  We have an increasing number of properties going directly to auction or using ibuyer services so that may account for some of it.

Michelle M Barre · Answer

San Antonio absorption rate depends on the area of course but it is averaging city wide approx 2.5-3.0 right now, may be even lower now...but of course in some areas high in desirability and affordability-multiple offers with 7 days on market....GONE! 0-1 absorption! GO FIND THE DEAL YOURSELF!!!! if the answer to that

Robert Shaw · Answer

@Tamara Deering Thank you! This is probably a silly question and I'm still learning :) But does this mean San Antonio is a good place to invest in? Or do you see more potential in other areas in Texas? If say I were looking for cashflow positive SFRs under $200k or multi-family units?

San Antonio Texas Absorption Rate?

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