Real estate leaders on challenges and opportunities in San Antonio

Writer: Mirella Franzese

September 2025 — Real estate activity is strong in San Antonio as development continues to attract sizable investment across sectors. However, recent shifts in national policy, combined with increasingly complex financial and labor markets, have introduced new challenges for investors. 

Major firms such as JBGoodwin Realtors, San Antonio Board of Realtors, Realty San Antonio, and Escalera Capital are actively reassessing demand and adjusting expectations. While development activity and growth continues, confidence levels are fluctuating in line with broader economic uncertainty.

High-growth sectors such as semiconductors, healthcare, financial services, and cybersecurity are drawing capital to San Antonio, but industry experts warn that ongoing uncertainty could threaten future inflows, especially as tariffs, inflation, and interest rate decisions cause project delays and cost overruns on key projects.

In interviews with Invest:, leaders shaping San Antonio’s real estate landscape, including Erin Cestero, president of JBGoodwin Realtors’s San Antonio Division, Gilbert Gonzalez, president and CEO of the San Antonio Board of Realtors, Marisa Jackson, agent success manager of Realty San Antonio, and Bobby Magee, managing partner of the Escalera Capital, discussed ongoing challenges, and opportunities to attract investors, affordable housing initiatives and more.

Erin Cestero, President – San Antonio Division, JBGoodwin Realtors

There’s a unique opportunity here. San Antonio caught the nation’s attention from 2020 to 2022, with builders and investors moving here. We have a lot of inventory — more than we have seen since the housing crisis. It’s a more balanced market, but sellers must adjust to slower sales. Buyers have more choices and better negotiation power. With experienced agents, buyers can find incredible opportunities, such as builders covering closing costs and offering 2020-level interest rates. This competition creates unique affordability unseen in most of the nation. (Although) affordability remains better here than elsewhere, it’s slightly more challenging today than it was just a few years ago. As a result, many are choosing to rent, creating excellent investment potential, especially with our strong military presence driving rental demand. Interestingly, we see more millionaire military members than in many other professions because they invest in San Antonio real estate, often accidentally building portfolios that create long-term wealth. San Antonio’s consistent, predictable growth has reliably built generational wealth for families over time.

Gilbert Gonzalez, President & CEO, San Antonio Board of Realtors

San Antonio loves its single-family homes, and that’s paramount to our community. The interesting part is figuring out what other types of housing are appropriate for San Antonio. Would San Antonio embrace condos, more multifamily housing, row housing, duplexes, or similar options? That’s something we’re exploring. It’s a compelling market because of the quality of life that the community has built. San Antonio has attractive educational opportunities, employment opportunities, and entertainment opportunities. We invest a lot in making sure that it’s one of the best places for people to want to move to and live. The city itself is (also) working to develop downtown and make it more attractive. Some people want that quality of life; being able to walk to dinner, walk to the grocery store, and live in a more walkable city. But even in the suburbs, development is happening all over town: north, south, east, and west. Depending on where people work, they generally try to live nearby. 

Marisa Jackson, Agent Success Manager, Realty San Antonio

I would say that interest rates, the election, and the economic uncertainty have been the biggest factors impacting our business. First, it was the interest rates, then came the election. People were waiting to see if rates would go down, and they didn’t. In the past, there were seasonal trends we could track. Now things are more unpredictable. Those are the main factors. We’re in a buyer’s market with significant inventory available. Locally, our housing remains relatively affordable compared to other major metros, though affordability concerns persist due to interest rates. Many hesitate to make the leap. However, new construction presents strong opportunities — builders are offering incentives and lower interest rates, attracting first-time homebuyers. Buyers now have more options and can be selective. We advise sellers to make necessary updates for move-in-ready homes, as these still sell quickly. Market conditions vary by neighborhood, emphasizing the need to work with locally knowledgeable partners (Additionally,) the city has initiated new affordable housing programs. We’ll need more such efforts to address homelessness, which affects all major cities. Developing low-income housing for unhoused residents remains crucial. The city is actively working on this, even studying approaches from other municipalities. Maintaining this focus will be vital as San Antonio grows over the next decade. 

Bobby Magee, Managing Partner, Escalera Capital

We face some broader challenges that are unique and dynamic, especially as they relate to the ongoing tariff situation. We are monitoring material costs closely as well. As we acquire a hotel and begin to perform renovations, a lot of the materials are sourced through overseas vendors. With those costs increasing, it makes it even more challenging to get new hospitality developed or just acquisitions to underwrite. Combined with this factor, there are cost pressures on every line item of the operating statement. Insurance costs are increasing materially. Also, continually advancing systems and software, while they get more robust and beneficial, are getting increasingly expensive. There is cost pressure all the way around. In forecasting this out over the next year or two, for example, it gets hard to predict what will happen given how dynamic our economy is currently.We are seeing the community rallying toward investing in the Downtown area. Escalera Capital has several projects happening in Downtown San Antonio. This is a main area of focus, and there is a ton of support for Downtown. It is more than just new development and skyscrapers. What I love about the nascent opportunities in the Downtown area is the renovation of historic buildings. It is pouring love and investments into the same structures that made San Antonio, while also combining this with new growth through large partnerships like Hemisphere Park, the minor league baseball stadium, and other incredibly large projects happening Downtown.

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