finance
Bexar County Home Values Drop, Challenging San Antonio Market
Softening prices and rising inventory present ongoing challenges for local owners amid shifting tax revenue projections.
How we reported this
Bexar County home values decreased by approximately 0.11% to 0.4% over the past year in 2026, with San Antonio seeing median sale prices down roughly 2.1% to 2.6% year-over-year to around $260,000. This softening residential market, driven by lower prices for homes under $250,000, introduces clear headwinds for owners and the broader sector this year.
Market Softening and Inventory Pressures
The decline gives San Antonio buyers more leverage as inventory rises 15% to 18%. Sellers are conceding more on credits and closing costs, which slows the pace of price growth that previously saw double-digit gains. About 45% of Bexar County homes remain estimated to be overvalued, pointing to continued correction toward more accurate pricing.
Tax Revenue Shortfalls and Budget Strain
City of San Antonio forecasts a 2.13% decrease in taxable value after protests and exemptions. This pushes local officials to consider spending cuts or tax rate adjustments due to shrinking property tax projections. San Antonio’s early draft of the 2026-2027 budget proposes raising property taxes to the maximum 3.5% annual growth cap allowed by state law without voter approval, potentially adding $81 per year to an average homestead’s bill to address a $158 million deficit. This would mark the city’s first property tax rate increase in 33 years.
Implications for Owners and Sector Outlook
Owners face a combination of reduced equity gains and possible higher annual costs if the tax proposal advances. The proposal would not apply to roughly 46% of homesteads for residents over 65 or disabled with frozen rates, but could generate an additional $58.2 million in property tax revenue over two years. Utility costs could also rise as the San Antonio Water System requests approval for gradual rate increases. The softening trend suggests owners may need to adjust expectations on resale timelines and net proceeds while monitoring city decisions on revenue measures.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.