Spreading the wealth from San Antonio suburbs to downtown

​​​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.