Austin gets all the headlines, but San Antonio may be the better investment market in 2026. Here's what the data shows.
Price Comparison
- SA median home price: $275,000
- Austin median home price: $450,000
- Advantage: SA entry prices are 39% lower
Population Growth
- SA: 25,000+ new residents/year (steady)
- Austin: 30,000+ new residents/year (but slowing from tech layoffs)
- Advantage: SA growth is more diversified (military, healthcare, tourism)
Rental Yields
- SA: 7-9% cap rates achievable in target neighborhoods
- Austin: 4-6% cap rates (higher prices compress yields)
- Advantage: SA cash flow is significantly stronger
Deal Flow
- SA: 132K code violations, 4K+ pre-foreclosures, strong permit activity
- Austin: 54K code violations, 4.7K pre-foreclosures, permit activity slowing
- Advantage: SA has more distressed inventory per capita
The Verdict
Austin for appreciation plays. San Antonio for cash flow and value-add. Many savvy Texas investors are shifting capital from Austin to SA in 2026.
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