How COVID-19 changed San Antonio's housing market
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The effects of the pandemic are still reverberating throughout America's housing market, delivering wins for homeowners and roadblocks for those still dreaming.
Why it matters: Sky-high home prices, elevated mortgage rates and a shortage of houses for sale are pushing homeownership out of reach for many.
In the past five years, here are five ways the market transformed.
1. Home prices skyrocketed
Cheap borrowing costs and remote work unleashed a homebuying frenzy early in the pandemic — and sent prices soaring.
By the numbers: The median San Antonio home price in February was $289,995, up about 22% from $238,000 five years ago, according to the San Antonio Board of Realtors.
2. Inventory dried up
Those who scored ultra-low mortgage rates during the pandemic are hesitant to sell, locking up supply.
Yes, but: That's starting to change as homebuyers adjust to higher rates.
- Roughly 83% of U.S. homeowners with mortgages have a rate below 6%, down from around 88% a year ago, according to a recent Redfin analysis.
- And in 15 of the 50 largest metro areas, including San Antonio, Dallas and Denver, inventory in February topped pre-pandemic norms, per Realtor.com.
3. Rates surged, buyers stalled
Mortgage rates surged after falling to the lowest levels on record in 2021.
- Higher monthly payments are sidelining many home shoppers, especially first-timers.
Between the lines: Rates are now hovering near 7% and are unlikely to drop much soon, experts say.
4. Builders ramped up, then pulled back
Buyers flocked to newly built homes, searching for options and deals, too.
- Construction boomed in parts of the South and Sunbelt, helping to cool competition and runaway prices.
Reality check: Homebuilding has slowed since then, partly due to elevated interest rates and steep construction costs.
What we're watching: Builders have warned that President Trump's pledged tariffs (some that have since been paused) on imports could make construction more expensive and drive up home prices.
Meanwhile, mayors across the country are sounding the alarm about the housing crunch.
- Several have pushed to loosen construction restrictions, despite some proposals sparking local backlash.
What we're hearing: "The big concern in the housing market today is cooling new construction," Zillow senior economist Orphe Divounguy tells Axios.
5. Cash-rich people jumped in
Cash buyers, many of them investors, snapped up homes at record speeds during the pandemic.
The latest: They've taken a step back, though the share of purchases made in cash remains historically high.
- It fell to just under one-third in 2024, the lowest since 2021, Redfin research shows.
The bottom line: Wealthier people are those most likely to buy homes in this expensive housing market.