Cost of Living in San Antonio: A Real Homeowner Budget
The short answer: Owning a home in San Antonio often costs less than in other large Texas cities. To see the full picture, add property taxes, homeowners insurance, utilities and upkeep to your mortgage payment. Texas relies heavily on property taxes because there's no state income tax, so those numbers matter here. When you add them up before you start shopping, you'll find a price range that fits your life as well as your approval.
What "affordable" usually means
Most people moving here have heard that San Antonio is an affordable place to own a home. Compared with many large metros, it can be. Redfin put the city's median sale price at about $257,000 in September 2026, a little lower than a year earlier.
A lower price is a great place to start. The next step is looking at the yearly cost of owning that home. In Texas, taxes and insurance make up a bigger share of that cost than many newcomers expect.
Earlier this year, I spoke with a homeowner who had bought her home a few years ago. Her mortgage payment had gone up every year, and she couldn't figure out why. Her loan hadn't changed. The increases came from her property taxes and homeowners insurance, which are collected through escrow along with the mortgage. We talked about how to keep that part of her payment as low as possible. If the county's appraised value seems too high, she can protest it with the Bexar Appraisal District. She should also make sure her homestead exemption is on file, since it lowers the taxable value of her home. On the insurance side, I suggested she shop her policy every year before it renews. Rates can vary quite a bit from one company to the next, and loyalty doesn't always earn the best price.
Why property taxes carry so much weight here
Texas doesn't have a state income tax, so schools, counties and cities are paid for largely through property taxes. Your bill comes in layers. Bexar County, the City of San Antonio if you live inside city limits, your school district, University Health, the Alamo Colleges and the San Antonio River Authority each set their own rate. For a home inside city limits, the 2026 rates add up to roughly 2.3% to 2.5% of the home's taxable value, depending on the school district. Homes outside city limits often come in lower.
Rates do change. In September 2026, City Council raised the city's rate for the first time since 1992, from about 54.2 to 56.3 cents per $100 of value. For the average homestead, that works out to about $49 more a year.
The homestead exemption works in your favor. Texas raised the school district exemption to $140,000 starting with the 2025 tax year, and owners who are 65 or older or disabled get an extra $60,000. School taxes are usually the biggest piece of the bill, and for a home in Northside ISD, the $140,000 exemption alone takes about $1,450 a year off. You can file with the Bexar Appraisal District right after you close.
One thing I watch for with every purchase: your first year's escrow is often set using the seller's tax bill. If the seller had exemptions you won't have, like the over-65 freeze, your real bill can come in higher and create an escrow shortage the following year. I'd rather you know that going in than find out from a letter. My next post covers property taxes in more detail.
Homeowners insurance has changed the most
Insurance is the cost I've seen move the most in recent years. The Texas Department of Insurance reports an average homeowners premium of about $3,506 in 2025, nearly double what it was in 2015. Hail, roof age and whether the home sits in a flood zone all play a part.
Your lender will require coverage, and the premium is usually collected through your escrow account along with taxes. My advice is to get an insurance quote as early as you can, ideally during your option period. An older roof can raise your premium or limit which companies will write a policy. If the home needs a new roof, a renovation loan can sometimes fold that cost into your mortgage. I explain how that works in How to Buy a Home That Needs Work.
Utilities don't show up in your approval
CPS Energy, which is owned by the city, provides electricity and natural gas for most of San Antonio. As of this summer, it had not proposed a rate increase. Even without one, summer is the expensive season here. A long, warm summer and an older AC unit can make July's bill look very different from March's. Ask the seller for a year of electric bills, and find out how old the AC system is.
Water and sewer come from SAWS. The average residential bill is about $56.58 a month right now. City Council approved a series of increases in October 2026, starting with about $3.91 a month in January 2027 and adding up to roughly $16.50 a month by 2030.
None of this is part of your mortgage payment, so a lender won't count it when deciding what you qualify for. That's exactly why I want you to plan for it yourself.
Upkeep and HOA dues
A common rule of thumb is to set aside about 1% of your home's value each year for maintenance and repairs. Many homes in established San Antonio neighborhoods are older, and those can call for more. A newer home may need less upkeep, and it often comes with HOA dues, especially on the north side. HOA dues do count when a lender calculates what you qualify for.
What the lender counts and what you should count
Here's where the official rule and my own rule of thumb part ways. When a lender decides how much you can borrow, it looks at principal and interest, property taxes, homeowners insurance, mortgage insurance if you have it, and HOA dues. It doesn't look at your electric bill, your water bill, repairs, your commute or childcare.
My rule of thumb is that your approval is a ceiling, not a target. You have a couple of paths. Plan A is to buy near the top of your approval and keep a healthy savings cushion for repairs and summer bills. Plan B is to aim below your approval so there's room in your monthly budget from day one. I usually lean toward Plan B for first-time owners, because the first year in a home tends to bring a few surprises. Either can work, and the choice is yours.
An easy-numbers budget
To keep the math simple, here's a rough yearly estimate for a $300,000 home inside city limits, not counting the mortgage itself:
Property taxes: about $7,000 at a 2.35% combined rate, before your homestead exemption
Homeowners insurance: about $3,500, based on the 2025 Texas average
Upkeep: about $3,000 using the 1% rule, more for an older home
Water and sewer: about $680, based on the current SAWS average
Electricity and gas: varies widely, so use the seller's bills
That's roughly $14,000 a year before your principal, interest and electric bill. Your homestead exemption can bring the tax line down by well over a thousand dollars. Your own numbers will depend on the home, the address and your insurance quote. For the loan side, try the calculators on my website.
Common questions
How much are property taxes in San Antonio? For a home inside San Antonio city limits, 2026 combined rates run roughly 2.3% to 2.5% of taxable value, depending on the school district. Homes outside city limits often come in lower. Your homestead exemption lowers the taxable value for school taxes.
Does my mortgage payment include taxes and insurance? Usually, yes. Most loans collect property taxes and homeowners insurance through an escrow account as part of your monthly payment. Utilities and repairs are not included.
When do I file my homestead exemption? You can file with the Bexar Appraisal District right after you close on the home you live in. The deadline is one year from your purchase date. The exemption can count for part of the year you bought, unless the seller already had a homestead exemption on the home for that year, which is common with resale homes. Either way, filing soon after closing means it's in place for the next full tax year.
If you'd like help building these costs into a budget before you start shopping, I'm happy to walk through your numbers with you. A short call is usually all it takes, and you can pick a time on my calendar.
Candy Williams, Licensed Loan Officer, NMLS #187126. NEXA Lending, NMLS #1660690. Figures are estimates for illustration only, based on public sources as of October 2026, and will vary by property. Rates, exemptions and fees change, so check current amounts before making decisions. I'm not a financial or tax advisor. Equal Housing Opportunity.
