San Antonio’s condominium market is experiencing a slowdown as other major Texas cities see increased activity in their condo sectors. According to a recent Redfin report, the number of active condo listings in San Antonio has risen significantly, with 585 units on the market and only about 120 buyers currently searching. This creates an approximate four-to-one ratio of sellers to buyers, as reported by the San Antonio Business Journal.
The months’ supply of condos has reached six, which is at the upper limit of what the San Antonio Board of Realtors considers a balanced market. As a result, many condos are remaining unsold for longer periods while sellers adjust their strategies.
Historically, Texas cities have been slower than others nationwide to adopt high-rise living. In San Antonio, this trend is even more pronounced due to factors such as a large military population that tends to prefer single-family homes or short-term rentals that can be sold quickly.
New construction has further increased supply by about 20 percent, adding more affordable single-family home options for buyers. “Buyers are overwhelmed by local options,” said Jesse Landin, a local Redfin agent.
This situation reflects broader national trends. Redfin found that in August there were 72 percent more condo sellers than buyers across the United States—the fifth consecutive month with an oversupply of condos. Rising costs are cited as a primary reason for this imbalance. Homeowners association (HOA) fees now account for up to one-quarter of a typical buyer’s monthly budget, while insurance premiums and special assessments for maintenance have also risen sharply since 2020.
Landin described how these expenses can deter potential buyers: “Landin cited a $250,000 condo that lost three contracts because its $1,000 monthly HOA fee drove total monthly costs near $3,000 for a 1,000-square-foot unit.” The cancellation rate for home purchases in San Antonio has recently exceeded the national average.
Redfin also found that approximately 10 percent of single-family and condo listings in San Antonio risk selling at a loss—higher than the national average. Some investors have responded by converting units into short-term rentals to maintain profitability.
Currently, buyers have greater negotiating power. Sellers are increasingly offering incentives such as covering HOA fees or closing costs to attract interest, especially around the Medical Center area. “Sellers are starting to cover HOA fees or closing costs to sweeten deals,” Landin said.
In contrast to San Antonio’s sluggish market, other Texas metros like Houston are seeing strong demand for luxury condominiums. Developer Satya recently expanded its St. Regis condo tower project after nearly 40 percent of its 90 units were reserved before construction began at 102 Asbury Street between Memorial Drive and Buffalo Bayou. The first standalone Ritz-Carlton condo tower in Texas is under construction in the Woodlands area, while Randall Davis Company’s London House project in River Oaks pre-sold all but two out of its 23 units at 2323 San Felipe Drive before completion.
