According to an article posted on RIS Media, there are 3 reasons housing may have a breakout year in 2015. Listed are the following:

  • a stronger job market
  • stabilizing home prices
  • high rents.

Home prices in San Antonio are on the rise, but it is the higher rents that need to concern San Antonio residents the most.

Rents in our city are already higher than the average across the nation. Of course, cities like Los Angeles and New York set the bar pretty high, but people are unfavorably surprised by the rental properties available for under $1,000 in San Antonio. In my opinion (and one shared by many of my colleagues), the reasons for this are due to the following:

  • large number of people moving into San Antonio
  • a lag in building in the apartment sector
  • the fact that many employers are more willing to pay for leased property than to help their transferees to buy and sell homes
  • rising home prices in San Antonio will mean rents will rise at an increasing rate

Rents are already increasing in San Antonio at a good clip. One site I looked at indicated an 11.8% increase in average rents for December 2014 over December 2013. The high and increasing San Antonio rents plus the amazingly low interest rates, makes renting very expensive compared to buying a home. Below are some statistics to help you see what I mean. These approximations are based on an FHA loan for 30 years with a 25% tax bracket.

  • Current Rent: $1,300 (a nice 2-bedroom apartment)
  • Home Price: $160,000 (a 3-bed/2-bath home in a frequently-preferred ISD)
  • Monthly Mortgage: Approx $1,323
  • After Tax equivalent monthly mortgage: Approx $1,302

For just a little bit more per month, you could own your own home! The above figures do not include any consideration for appreciation in home value, nor are the many non-monetary perks included.

The biggest factor is this: Your rent money never appreciates; your mortgage dollars can and usually do appreciate. Wouldn’t you like your home to be truly yours!