Renter percentages in zip code 78023 have remained relatively low, fluctuating between 10% and 14% from 2013 to 2022. Despite this small renter population, average rent prices have shown an upward trend. In 2013, the average rent was $1,512, which increased to $1,667 by 2022, a 10.3% rise. This increase in rent prices, coupled with the area's growing population (from 20,856 in 2010 to 31,777 in 2022), suggests a competitive rental market despite the predominance of owner-occupied homes.

Looking at more recent data, the average home price in 2023 was $459,427, showing a slight increase from 2022. However, in 2024, there was a minor decrease to $451,737. This recent stabilization in home prices coincides with a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to a cooling effect on home price growth.

Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 78023 will continue to grow, but at a more moderate pace than seen in the previous decade. This moderation is likely due to the current higher interest rate environment. Average rent prices are expected to continue their upward trajectory, driven by the area's growing population and limited rental inventory. However, the rate of increase may slow if more rental properties become available or if economic conditions change significantly.

In summary, zip code 78023 in San Antonio has demonstrated a robust real estate market characterized by high homeownership rates, steadily increasing property values, and a growing population. The area has shown resilience to market fluctuations, with recent data indicating a potential stabilization in home prices. The interplay between federal interest rates, population growth, and the limited rental market has shaped these trends, creating a unique and dynamic real estate environment in this San Antonio zip code.