If you’ve been thinking about buying a home in San Antonio but aren’t sure if it makes financial sense, consider this: A new report from Trulia shows that it’s significantly less expensive to buy in the city than rent, “at a 50 percent cost difference benefiting homeownership,” said culturemap San Antonio. “The median San Antonio home costs $155,273, compared to a median rent of $1,350 per month. In order for buying to become less advantageous than renting in San Antonio, home prices would have to jump to a median $336,942, while interest rates would have to rise to 13.3 percent.”
Nationally, buying a home is currently 37.7 percent cheaper than renting, but affordability is greater in San Antonio, despite the growing popularity of the city. San Antonio's multifamily rents—namely, new Southside apartments like those being built at Brooks City Base—continue to cost more, giving San Antonio homebuyers more buying power. The San Antonio Business Journal noted that mortgage payments on a home are on par with rents in the city. “While San Antonio's home prices are nowhere near those of New York City or Seattle, it's unique in that mortgage payments on a home are often the same, or even lower, than monthly rental rates,” they said.
And, although “The single-family rental market picked up steam at the height of the recession when many single-family households lost their homes due to foreclosure, a rebounding economy has created homebuying opportunities for everyone from first-time buyers to repeat buyers to ’boomerang buyers’ “who can now qualify for a mortgage again.”
Rising home values and mortgage rates that are near historic lows also continue to breed confidence in buyers. “Over the past year, the national average interest rate dropped from 3.9 to 3.7 percent. The Federal Open Market Committee (FOMC), commonly known as the Fed, would have to at least double rates for the scale to tip in favor of renting,” said culturemap. “On every front, buying makes the most sense — especially in the South.
San Antonio free homebuilder programs at Southside masterplanned communities like Mission del Lago also continue to grow in popularity for those whose credit may need a little work to get in a better position to buy a home in San Antonio.
That all spells good news for San Antonio buyers craving the many advantages of homeownership that aren’t available to renters: growing equity, tax savings, pride of ownership, and the ability to be part of a close-knit community with likeminded neighbors that often turn into friends.
For more information about buying a new home in San Antonio, visit Mission del Lago. This 800-acre San Antonio golf course community offers single-family homes from the $160s by D.R Horton and Lennar, community amenities including playgrounds and an onsite golf course, and a location that puts Southside employers like the San Antonio Toyota Plant, Brooks City Base, the fast-growing new Texas A&M University, and downtown within easy reach. Mission del Lago is the fastest-selling community in all of San Antonio in its price category and one of the fastest growing across all price points.
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