When “Affordable” Isn’t Affordable Anymore: The Real Cost of Living in New Braunfels–San Antonio

What’s really happening to housing affordability in New Braunfels and San Antonio?

Even in two of Texas’s most “affordable” metros, the gap between what people earn and what homes cost has become nearly impossible to ignore. Rising prices, stretched wages, and growing costs beyond housing are reshaping what it actually means to call these places home.

Let’s take a closer look at how we got here—and what it means for the people who live and work in the heart of Central Texas.

The Affordability Illusion

For years, the New Braunfels–San Antonio area was seen as a haven for affordability. Compared to Austin or Dallas, it still is—on paper. But under the surface, the numbers tell a different story.

New Braunfels has exploded in growth, doubling its population since 2010 to roughly 117,000 residents today. That growth alone sounds like success. But when home prices climb faster than incomes, it creates a pressure cooker for affordability.

The median home price in New Braunfels now ranges from $330,000 to $375,000, while the median household income sits around $88,000. That puts the price-to-income ratio at about 4.0—meaning homes now cost roughly four times what the typical household earns in a year.

In San Antonio, prices have held slightly lower—between $248,000 and $310,000—but the city’s median household income is only $62,917. By national standards, that’s still considered “affordable,” yet a closer look reveals that most residents are stretching every paycheck just to make ends meet.

The Math Just Doesn’t Add Up

To live comfortably in San Antonio, a single adult needs to make about $86,694 per year. The actual median income? Nearly $24,000 less.

That gap gets even wider for renters and hourly workers. In New Braunfels, anyone earning $10–$18 an hour faces serious challenges affording rent between $1,500 and $1,900 a month. Those rent levels require an annual income between $55,000 and $75,000—well above what many local workers bring home.

It’s not just a few households feeling the pinch. More than half of all renters in the metro—52.7%—are cost-burdened, meaning they spend over 30% of their income on housing. Among lower-income renters earning under $30,000, that number skyrockets to nearly 90%.

In New Braunfels alone, 7 out of 10 households making under $50,000 live in housing that isn’t considered affordable to them. That means the people who power the local workforce—teachers, trade professionals, hospitality staff, and small business employees—are being priced out of the communities they serve.

It’s Not Just About Home Prices

Housing costs are just one piece of the puzzle. The broader cost of living has risen sharply across the region.

• Property taxes: With a median rate of 1.49%, the average New Braunfels homeowner pays around $6,000 per year—and that’s before factoring in appraisal increases.

• Insurance: Homeowners insurance now averages about $1,600 annually, with many residents reporting premium hikes as high as fourfold in recent years.

• Utilities: Longtime residents say utility bills have doubled in the last few years.

• Mortgages and rent: The average mortgage payment climbed from $1,599 in 2015 to over $2,000 today, while average rent rose from $1,125 to $1,500 in the same period.

When you add it all up, the “affordable” label starts to look a lot like a myth.

The Workforce Housing Crisis

Nowhere is this shift felt more deeply than in New Braunfels. Once known for its small-town charm and accessible home prices, it’s becoming a destination for wealthier newcomers—while local workers struggle to stay.

The affordability for workforce housing is now at a 40-year low. Teachers, nurses, first responders, and skilled tradespeople—the foundation of every community—are finding it harder to live where they work.

Even more alarming, the number of people seeking homelessness assistance in New Braunfels nearly tripled between 2023 and 2024. That’s not a statistic you’d expect from a community that once prided itself on being attainable for everyone.

Supply, Demand, and the Price of Progress

Developers continue to build at a rapid pace, but most of the new homes and apartments are targeting higher-income buyers. Only about 20% of multifamily units in New Braunfels qualify as affordable or “naturally occurring affordable housing.”

Statewide, Texas faces a shortage of roughly 320,000 housing units, and while new construction is up, much of it isn’t meeting the needs of the middle-income or hourly workforce.

The San Antonio–New Braunfels area currently sits at about 5.8 months of housing inventory, up slightly from last year’s 5.1 months. That signals a market slowly shifting toward balance—but not necessarily toward affordability.

San Antonio Still Has an Edge

Despite the challenges, San Antonio remains one of the most affordable major metros in the U.S. Housing costs account for about 23.6% of income, and middle-income residents can still afford nearly 87% of homes listed for sale—a stark contrast to markets like Las Vegas or California, where affordability has nearly vanished.

Even so, the market is softening. Home prices in San Antonio fell 3.7% year-over-year, and days on market continue to increase. For buyers, that’s welcome news. For sellers, it means adjusting expectations.

The region’s housing inventory is now 53% above historic averages, signaling a gradual move toward a buyer’s market—a correction that could help recalibrate prices over time.

Bridging the Gap

Both cities are actively seeking solutions.

San Antonio has expanded its Homeownership Incentive Programs (HIP 80 and HIP 120), offering forgivable loans of up to $30,000 for first-time buyers. The First Responder Housing Assistance Program provides another $20,000–$40,000 in support. The city’s Affordable Housing Bond has already committed over $127 million toward creating or rehabilitating more than 5,000 homes.

Meanwhile, New Braunfels is exploring new funding mechanisms—like Tax Increment Reinvestment Zones (TIRZ) and empowerment zones—to support workforce housing initiatives, particularly in its West End neighborhoods.

These efforts represent steps in the right direction, but experts agree: without significant increases in housing supply across all price points, affordability will remain out of reach for too many.

A Market in Transition

The National Association of Realtors recently listed the San Antonio–New Braunfels metro among the top 10 housing hot spots for 2025. That’s not just because of growth—it’s because the region’s fundamentals are strong: steady job creation, diversified industries, and a housing market correcting itself after years of rapid appreciation.

Mortgage rates hovering between 6.3% and 7% still constrain buying power, but as rates stabilize and inventory grows, more opportunities should open up for buyers ready to make their move.

The Bottom Line

Housing affordability in New Braunfels and San Antonio isn’t a simple story—it’s a complex balancing act between growth, wages, and community. While both cities remain more attainable than many other U.S. metros, the rising cost of living tells a story that hits close to home for thousands of residents.

The future will depend on how local leaders, builders, and residents respond—whether through creative housing policy, strategic development, or simply by staying informed and engaged.

Because in a region built on opportunity, the goal isn’t just to grow—it’s to make sure everyone has a fair chance to stay.

Follow me on social for more insights into the New Braunfels–San Antonio housing market and real estate trends.
— Cody Posey, REALTOR® with Phyllis Browning Company, serving the New Braunfels–San Antonio area