San Antonio ranks 21st among hottest real estate markets for 2022


San Antonio has slipped to 21st in a new annual ranking of US real estate markets with the best overall outlook for the coming year and has landed eighth in the country for home construction prospects in 2022.

The rankings are part of the Emerging Trends in Real Estate report published by the Urban Land Institute and PricewaterhouseCoopers. A year ago, that placed San Antonio in 12th place and sixth in residential construction.

The companies interviewed real estate officials about housing construction prospects, investor demand, development opportunities, and recommendations for buying, holding or selling different types of properties to establish the ranking.

The report also includes information on population, business costs, housing measures and employment.

Heading into next year, San Antonio placed behind Austin No.4 and Dallas / Fort Worth No.7, but ahead of Houston, which placed 24th overall. In the top three places were Nashville at No.1, Raleigh / Durham at No.2 and Phoenix at No.3.

Phoenix, Seattle, Denver, San Diego, and Miami were among the cities that overtook San Antonio between the companies’ 2021 and 2022 reports.

On Home sales in San Antonio stagnate, but prices rise by double digits from a year ago

San Antonio is one of a group of “loving” Sun Belt cities that are attracting new residents and businesses and are generally growing faster than the US average in terms of population and jobs.

“Their demographics are skewed toward prospects for faster economic growth with higher proportions of Millennials and Gen Xers and relatively fewer seniors and retirees,” the report says. “These metropolitan areas are also the preferred markets for investors and builders. “

San Antonio and other “Super Sun Belt” cities are “large and diverse but still affordable,” attracting a range of businesses and rebounding more quickly from the economic ravages of the coronavirus pandemic, the report adds.

On buy / hold / sell rankings for various types of real estate, San Antonio ranked # 1 for hotel properties with 54% of respondents recommending it as a buy, 38% as a hold and 8% as a sale. . It ranked third for commercial real estate, with 43% buy recommendations, 50% hold and 7% sell. It is eighth on the collective real estate scale and 12th on industrial real estate.

The national economy and real estate markets have recovered from the coronavirus pandemic faster than leaders initially expected.

On The Austin group has signed a contract to buy the building from San Antonio Express-News

But the pandemic has brought about changes in the way people work, shop and live, with businesses shifting to remote or hybrid models for office workers and more shoppers ordering groceries in line. This affects the demand for office and retail space.

“Companies will need to provide enough space for remote workers to collaborate in person, at least occasionally,” the report says. “But in almost every conceivable scenario, businesses will rent less space in the future than before.”

As house prices and rents rise and residents of expensive cities move to smaller markets, housing affordability is another pressing concern.

Rising costs make home ownership even more inaccessible to many potential buyers, and new property construction is not keeping pace with household formation.

“Housing affordability deteriorated during the pandemic as the rise in house prices and rents barely stopped during the brief recession and then quickly accelerated as the economy reopened.” wrote the authors of the report. “Prices and rents continue to rise at some of the highest rates on record, well ahead of relatively modest wage gains.”

[email protected]


About Author

Comments are closed.