Starter homes are getting pricier across Texas, squeezing San Antonio buyers

Buying a first home in San Antonio is increasingly about deciding what a buyer can afford to give up, whether that’s space, location, move-in-ready condition or all three.

An analysis from Texas A&M University found the statewide price benchmark for starter homes rose from about $155,000 in 2015 to $275,000 in 2026 — a 77% increase. Prices in the trade-up segment rose 63% during that period.

The analysis defines a starter home price as the threshold separating the lowest third of home sales from the rest of the market. It is not a measure of the median price paid by first-time buyers.

In San Antonio, Erin Cestero, president of J.B. Goodwin Realtors, said the local median home price is about $300,000. She said the firm typically sees first-time buyers looking in the $175,000 to $250,000 range, depending on the part of town and the type of home.

“That can vary. Sometimes that’s condominiums for some of our folks looking for amenities like that. Other times those are two- to three-bedroom homes,” Cestero said. “That price point varies drastically depending on area of town.”

The price differences can be significant across the city. Data from Realtor.com lists a median asking price of $380,000 on the North Side and $215,000 on the Southeast Side.

In ZIP codes 78245, 78253, 78254 and 78252, median listing prices range from about $249,924 to $346,375.

Taylor Collins, an associate professor of economics at the University of the Incarnate Word, said the demand for smaller homes is rising at the same time as the new construction market has moved toward larger homes.

“All three of those demographics typically want smaller homes,” Collins said. “At the same time, on the supply side, we’ve been building bigger and bigger.”

Collins said older adults looking to downsize, single-person households and households without children, are among the groups competing for smaller homes.

“What that means is the competition for the smaller homes, first-time homebuyers are going head to head against retirees who are trying to downsize and it’s really hard for them to win that battle,” Collins said.

For buyers who do find a home within reach, the listing price is only part of the calculation. Monthly costs can also include property taxes, homeowners insurance, private mortgage insurance for certain loans, homeowners association fees and potential repairs.

Cestero said buyers may find opportunities through concessions from sellers or builders, including help with closing costs or interest-rate buydowns.

“We’re seeing that both resale sellers and new construction communities are offering to pay for all their closing costs,” Cestero said. “So there’s less money they have to bring to the closing table.”

She said the focus should be on the total monthly payment and a buyer’s individual budget, rather than the purchase price alone.

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