Ed Neuhaus 
Austin’s median sold price hit $412,250 in early 2026. San Antonio’s median sits at $296,425. That’s a $116,000 gap between two cities that are only 80 miles apart (and honestly, the gap tells you less than you’d think about which one is the better buy right now).
I work both markets. Neuhaus Realty Group specializes in West Austin and the Hill Country, but my investment portfolio stretches into the San Antonio corridor too. I own STR properties across Central Texas, and when people ask me “Austin or San Antonio?” my answer is always the same: it depends on what you’re optimizing for. Lets break down the real numbers.
The Price Gap Is Real, But Context Matters
According to the Texas Real Estate Research Center at Texas A&M, Austin’s median sold price dropped 3.6% year over year while San Antonio dipped just 1.8%. Both markets are correcting, but Austin fell harder because it climbed higher during COVID. San Antonio never had that same speculative run-up, so there’s less to give back.
Here’s what that looks like in actual dollars:
Austin (Travis County metro):
- Median sold price: $412,250
- Down 25% from May 2022 peak (~$550K)
- 4.77 months of inventory
- Average 89 days on market
San Antonio (Bexar County metro):
- Median sold price: $296,425
- Modest 2.3% year-over-year increase
- More balanced inventory levels
- Condos averaging $186,250, single-family around $299K
So Austin is in a correction. San Antonio is doing that slow and steady thing. If you read my piece on why a property a year makes you a millionaire, you know I’m a tortoise investor. And right now, both cities offer something for the tortoise.
Job Markets: Tech Money vs. Government Stability
This is where the two cities really diverge, and it matters more than most comparison articles will tell you.
Austin’s tech sector represents 16.3% of all jobs in the metro, according to CBRE’s 2024 Scoring Tech Talent report. The city ranks #5 in North America for tech talent, with workforce growth of 29.1% between 2018 and 2023. Nvidia just announced 650 new jobs. ARM added 200. Apple, Meta, Oracle, and Tesla all have massive campuses here.
But tech is cyclical. We saw that in 2023 when layoffs hit Austin hard and housing softened overnight. When Elon tweets something weird at 2am, Austin feels it by breakfast.
San Antonio’s economy runs on three pillars that basically never go away: military (Joint Base San Antonio is the largest military installation complex in the Department of Defense), healthcare (the South Texas Medical Center is one of the largest in the country), and tourism (the Riverwalk alone draws 11+ million visitors annually). These aren’t sexy industries. They don’t make TechCrunch headlines. But they don’t evaporate during a funding winter either.
Benjamin Graham wrote about this in The Intelligent Investor. The difference between an investor and a speculator is that the investor looks for adequate return with safety of principal. San Antonio’s job market is the “safety of principal” play. Austin’s is the growth play. Neither is wrong, but you should know which one you’re buying into.
What Does Your Dollar Actually Buy?
The cost of living gap between these two cities is significant and it goes way beyond home prices.
According to NerdWallet’s cost of living calculator, Austin runs about 18.4% more expensive than San Antonio overall. But the housing piece is where it really gets dramatic. Rents in Austin are 44.9% higher than San Antonio. That’s not a rounding error.
In practical terms: a family earning $120,000 in San Antonio would need roughly $142,000 in Austin to maintain the same standard of living. I wrote about the income you actually need to buy in Austin and the number surprises a lot of people. About $160,000 household income for a median-priced home.
In San Antonio, that same math works out to roughly $105,000 to $110,000 household income for the median home. That’s a meaningful difference for a young family or someone relocating from out of state.
But here’s what people miss. Austin’s higher cost of living comes with higher salaries. Tech workers in Austin earn 15-25% more than comparable roles in San Antonio. So the gap shrinks (or disappears entirely) if you’re in the right industry. If you’re a nurse, teacher, or government employee, San Antonio’s affordability advantage is real and significant. If you’re a software engineer, Austin probably washes out.
The Investment Case for Each City
Ok this is the section where I get to nerd out a little because I genuinely love running these numbers.
Austin as an investment:
- Entry point for rental properties: $350K-$500K for something that cash flows
- Average rents: $1,725/mo (1BR), $2,140/mo (2BR)
- Gross rental yields: 5-6.5% depending on neighborhood
- Appreciation play: buying 25% below peak with tech tailwinds
- Risk: further correction possible (TRERC forecasts “further but lessening losses”)
San Antonio as an investment:
- Entry point: $200K-$350K for a solid rental property
- Average rents: $1,600-$1,692/mo
- Rental growth: projected 4-6% through 2026
- Cash flow play: lower entry + decent rents = better day-one cash flow
- Risk: slower appreciation (but also slower crashes)
Lets do some quick math. Say you have $100,000 to invest.
In San Antonio, that’s 20% down on a $500,000 property (which would be solidly above median, a nice rental) or you could buy two properties at $250,000 with 20% down each. Two rental doors generating $1,600-$1,700/mo each.
In Austin, $100,000 gets you 20% down on a single $500,000 property. One door. Higher rent per unit, but only one tenant, one property, one set of problems.
I’ve talked about this before. My personal philosophy (and I go through this in the Hill Country investment properties guide) leans toward the tortoise approach. More doors, lower risk per unit, patience. San Antonio fits that model really well right now.
But. And this is a big but. Austin’s correction is creating a window that doesn’t come around often. Buying 25% below peak in a market with Apple, Tesla, Oracle, and Nvidia? That’s the kind of entry point you tell your kids about. The appreciation upside in Austin over a 10-year hold is probably significantly higher than San Antonio. You’re just paying more to get in the door.
Lifestyle: These Are Very Different Cities
I’m going to be a little biased here because I live in Bee Cave (which is West Austin, Hill Country, the good stuff). But I’ll try to be fair.
Austin is weird. Or at least it used to be. It’s becoming more “corporate weird” (Tesla trucks instead of food trailers) but the cultural DNA is still there. Live music on every corner. Barton Springs on a Saturday. The food scene is genuinely world-class. And the outdoor life, kayaking Lady Bird Lake, hiking the Greenbelt, swimming holes in Dripping Springs, is hard to beat anywhere in Texas.
San Antonio is… underrated. I’ll say that honestly. The Riverwalk gets all the tourist attention, but the real San Antonio is the Pearl District (incredible food and shopping), the King William historic neighborhood, and honestly some of the best Tex-Mex you’ll eat anywhere on earth. The Missions are a UNESCO World Heritage Site (one of only 24 in the entire country). And Fiesta is one of those events that you can’t really explain to someone who hasn’t been.
For families, both cities have strong school districts in the suburbs. Austin’s Eanes ISD and Lake Travis ISD consistently rank among the best in Texas (I wrote a whole comparison of Hill Country school districts if that matters to you). San Antonio has excellent options in Alamo Heights ISD and North East ISD.
The vibe difference is real though. Austin attracts people who want to be in “the scene.” San Antonio attracts people who want a great quality of life without paying Austin prices for it. No judgment either way, but you should know which one you are before you write a check.
Property Taxes: Same State, Different Pain
Texas has no state income tax (which is awesome right). But property taxes make up for it, and they hit differently in these two metros.
Travis County (Austin) effective property tax rates run about 1.8-2.2% depending on the jurisdiction. On a $412,000 home, that’s roughly $7,400 to $9,000 per year.
Bexar County (San Antonio) rates are slightly higher percentage-wise at around 2.0-2.4%, but because home values are lower, the actual dollar amount is less. On a $296,000 home, you’re looking at roughly $5,900 to $7,100.
So you save $1,500 to $2,000 per year in property taxes by buying in San Antonio, even though the rates are technically higher. It’s one of those things that confuses people. The rate matters less than the assessed value it’s applied to.
Both cities allow you to protest your property tax appraisal (and you absolutely should, every single year). That’s free money sitting on the table.
Who Should Buy in Austin
Austin makes sense if you check most of these boxes:
You work in tech (or a field where Austin salaries offset the higher cost of living). You’re buying for long-term appreciation and can stomach some near-term softness. You value culture, nightlife, food, and outdoor recreation as a core part of your lifestyle. You want access to the Hill Country without being “in the country.” Or you’re an investor with the capital to buy during a correction, knowing you might wait 3-5 years for full recovery.
If you’re thinking about Austin, the current buyer’s market conditions are actually working in your favor. Sellers are negotiating. You can get concessions. That wasn’t true 3 years ago.
Who Should Buy in San Antonio
San Antonio is your play if you’re optimizing for affordability and cash flow. Military families or veterans (JBSA is a career anchor). Healthcare workers who want to live where their salary stretches furthest. First-time buyers who need a lower entry point. And investors who want more doors for less capital.
San Antonio is also the better choice if you’re planning to work remotely and your employer doesn’t adjust pay for cost of living. Your California or New York salary goes a LOT further in San Antonio than Austin.
One thing I’ll add from personal experience: the I-35 corridor between Austin and San Antonio is filling in fast. New Braunfels, San Marcos, Kyle. These in-between cities are becoming their own thing. In 10 years, “Austin vs San Antonio” might be a less relevant question because the two metros will essentially merge along that corridor. Something to think about if you’re buying for the long term.
The Bottom Line
Austin gives you appreciation potential, tech economy upside, and lifestyle. San Antonio gives you affordability, stability, and cash flow. Both give you no state income tax, strong population growth, and a landlord-friendly regulatory environment.
If I’m being completely honest (and I try to be), the smartest play I’ve seen investors make is buying in BOTH markets. An appreciation play in Austin during this correction window, plus a cash flow play in San Antonio at a lower entry point. Diversification across 80 miles of I-35. Not a bad portfolio.
Ryan Holiday would call this “the obstacle is the way.” Austin’s correction feels scary, but it’s creating the opportunity. San Antonio’s stability feels boring, but boring is how you build wealth without losing sleep.
Frequently Asked Questions
Ready to Make a Move?
Whether you’re leaning Austin, San Antonio, or both, the first step is the same. Get the real numbers for YOUR situation, not the median stats from a blog post (even this one).
I’ve helped dozens of buyers and investors navigate both of these markets. If you want to talk through the math on a specific property or neighborhood, lets connect. No pitch, just real numbers and honest opinions. That’s kind of my whole thing.
And if you’re already eyeing Austin, check out what’s on the market right now. Browse Austin homes for sale or explore the Hill Country communities that I know best. Be safe, be good, and be nice to people.
