San Antonio Economic Indicators

Employment increased in the three months ending in August, but growth was mixed. The unemployment rate edged down and wages rose in August. Home prices dipped, and inventory declined. Apartment rental rates were slightly below last year’s levels.

Labor market

Employment growth slows in August

Employment in San Antonio rose an annualized 1.4 percent in August after growing 3.5 percent in July. Texas employment increased 1.6 percent in August while employment nationally grew 1.2 percent. Job growth in San Antonio has outpaced expansion in the U.S. but not Texas since the pandemic, with employment in San Antonio up 8.6 percent compared to 11.4 percent in Texas and 4.5 percent nationally (Chart 1).

Employment expansion mixed

San Antonio payrolls edged up an annualized 0.7 percent from May to August but were down 0.4 percent year to date (Chart 2). The sectors with the fastest job growth from May to August were mining and construction (9.6 percent), professional and business services (8.9 percent), and leisure and hospitality (4.0 percent). The sectors with the largest payroll declines included information (6.6 percent), education and health services (6.1 percent), and government (2.7 percent).

Unemployment rate declines

The San Antonio unemployment rate fell to 4.2 percent in August (Chart 3). The jobless rate was higher in Texas (4.4 percent) but lower for the U.S. (4.1 percent). San Antonio's labor force grew an annualized 1.0 percent in August.

Wages increase

The three-month moving average of nominal hourly wages in San Antonio edged up to $32.75 in August. Year over year, San Antonio wages climbed 3.7 percent in August, while wages were up 4.5 percent in Texas and 3.2 percent nationally (Chart 4). Wages in San Antonio are lower than the state ($36.01) and the nation ($37.66).

Housing market

Home prices and inventories fall

San Antonio's median home price declined 1.3 percent in August (Chart 5). Year over year, median home prices fell 1.4 percent in the metro area in line with the state (1.4 percent). San Antonio home inventories dropped to 5.7 months in August, below six months, which is generally considered a balanced housing market. A year ago, home inventory levels in San Antonio were 5.5 months.

Declines in apartment rent growth are moderating

Year-over-year apartment rents fell 2.5 percent in San Antonio in August, while rents decreased 0.4 percent in Texas and increased 2.2 percent nationally (Chart 6). The market rate rent in San Antonio was $1,250 in August, lower than the state ($1,300) and the nation ($1,770).