San Antonio Property Taxes Are Dropping — And That's Just the Beginning of Good News for Buyers

San Antonio homeowners and prospective buyers are watching a significant story develop in real time: property tax assessed values in Bexar County are falling — and the implications for affordability are real and immediate. Stack that on top of moderating home prices and aggressive builder rate incentives, and the case for buying a home in San Antonio right now is one of the strongest it's been in years.

Factor 1: Your Property Tax Bill Is Going Down

The Bexar Central Appraisal District's 2026 valuations tell a clear story: existing home assessed values are down 3.5%, and overall taxable value including new construction is down 2.1%. Bexar County's own budget analysts are calling it the county's worst year for property tax revenue since the 2008 financial crisis — existing properties were valued at $4.8 billion less than the prior year.

For homeowners and buyers, that translates directly to a lower monthly escrow payment. Using Bexar County's median effective tax rate of 1.55%:

•       Existing home (median $310,000): 3.5% assessed value drop = ~$10,850 reduction → ~$168/year saved → ~$14/month less

•       New construction (median $350,000): 2.1% drop = ~$7,350 reduction → ~$114/year saved → ~$9/month less

Those monthly figures are modest on their own — but they compound. And critically, lower assessed values mean lower property taxes for as long as those valuations hold, benefiting both current owners and incoming buyers from day one.

A lower assessed value also means lower closing costs in some scenarios, a more favorable debt-to-income calculation for mortgage qualification and reduced carrying costs for investors. The tax drop works in buyers' favor across the board.

Factor 2: Home Prices Have Moderated From Peak Levels

San Antonio's median home price has pulled back from its 2022 pandemic peak and is now settling in the $284,000–$310,000 range. Inventory has grown significantly — over 8,500 active listings with roughly 6 months of supply — giving buyers more choices and more negotiating leverage than at any point in the past three years.

Sellers are increasingly motivated. Over 36% of relisted homes are coming back at lower prices than their original ask. Homes are averaging 60–75 days on market, up dramatically from the sub-30-day pace of 2021–2022. For buyers who sat out the frenzy, the market has fundamentally shifted in their favor.

Factor 3: Builder Rate Buydowns at 4.99% or Lower

Several major San Antonio homebuilders are currently offering mortgage rates as low as 4.99% — nearly two full percentage points below the prevailing market rate of ~6.7% for pre-owned homes. On a $320,000 loan, that gap alone translates to roughly $335 less per month, or over $4,000 per year.

These promotional rates are real — builders are buying them down on buyers' behalf to move inventory. But they won't last indefinitely. When market rates fall on their own, the incentive to offer buydowns disappears.

The Combined Savings Picture

* Based on $320,000 loan at 4.99% vs. 6.7% for rate savings; $310,000 median home value at 1.55% Bexar County effective tax rate for property tax savings. Individual results will vary.

Buying at today's conditions versus peak 2022 — higher prices, higher rates, higher tax assessments — represents a difference of $350 or more per month for the same home. That's not a rounding error. That's a material shift in what San Antonio families can comfortably afford.

How Long Will This Window Stay Open?

All three factors are in play simultaneously right now — but none is permanent. Assessed values can reverse as the market recovers. Builder rate buydowns disappear when demand picks up. And moderating prices tend to correct upward in a city still attracting jobs, residents, and investment the way San Antonio is. The window is open now. The question is whether buyers recognize it.

Ready to Run the Numbers on Your Situation?

Bruce X. Forey helps San Antonio buyers understand the full cost picture — taxes, rates, incentives, and long-term appreciation potential. Reach out for a complimentary buyer consultation: [email protected]