Spreading the wealth from San Antonio suburbs to downtownSpreading the wealth from San Antonio suburbs to downtownhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=112502015-12-01T06:00:00Z2015-12-01T18:00:00Z

​​​SAN ANTONIO - With 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 is no surprise that is where you will find the most affluent neighborhoods and the most expensive submarkets across San Antonio.

Nine of the ten 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. 

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 sf.

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.

“Real estate prices in the downtown area and even Southtown area have escalated in the past year with all of the residential activity,” Nivin said, adding that the King William neighborhood has benefited from the most dramatic increases in home values. “From my observation, it’s to the point where you can’t be unaffluent and live in these areas.”

As more projects fill in San Antonio’s city center, a majority of industry professionals are guessing that’s where the values will climb fastest.
San Antonio Business Journal
San Antonio-New Braunfels

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