San Antonio’s condominium market is experiencing a slowdown, with inventory levels rising and buyer interest declining, according to a recent Redfin report. The San Antonio Business Journal noted that there are currently 585 active condo listings in the city but only about 120 buyers actively searching, resulting in a roughly four-to-one ratio of sellers to buyers.
The months’ supply of condos has reached approximately six, which the San Antonio Board of Realtors considers the upper limit for a balanced market. This surplus has led many units to remain unsold as sellers adjust their strategies.
Texas cities have generally been slower than other regions in adopting high-rise living, and this trend is even more pronounced in San Antonio. The city’s large military population tends to prefer single-family homes or short-term rentals that can be sold quickly, making condos less attractive.
Local Redfin agent Jesse Landin explained that new construction has increased housing supply by about 20 percent, adding more affordable single-family homes and giving buyers additional choices. “Those costs can kill deals,” Landin said regarding homeowners association fees and other expenses. He cited an example: “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.”
Nationally, Redfin found that in August there were 72 percent more condo sellers than buyers across the United States—the fifth consecutive month of oversupply. Rising costs such as homeowners association fees and insurance premiums have contributed to this trend since 2020.
In San Antonio specifically, about 10 percent of single-family and condo listings risk selling at a loss—higher than the national average. Investors have responded by pulling back or converting units into short-term rentals to avoid losses.
Sellers are now offering incentives like covering HOA fees or closing costs to attract buyers, especially around the Medical Center area. “Sellers are starting to cover HOA fees or closing costs to sweeten deals,” Landin said.
While San Antonio faces these challenges, other Texas metropolitan areas are seeing increased demand for luxury condominiums. In Houston, developer Satya expanded its St. Regis condo tower after nearly 40 percent of its 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 also under development in the Woodlands. Additionally, 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.
This contrast highlights diverging trends within Texas’ real estate markets as some cities see growth while others contend with excess supply and shifting buyer preferences.
