Raleigh vs San Antonio

**Home-Price Appreciation** — The two markets are moving in opposite directions at the index level as of Q2 2026. Raleigh posted a +1.1% year-over-year gain but edged down -0.1% quarter-over-quarter in Q2 2026, signaling that its post-pandemic price run has largely plateaued. San Antonio recorded a -0.5% year-over-year decline alongside a modest +0.5% quarter-over-quarter bounce in Q2 2026, suggesting the market may be stabilizing after a mild correction. Looking at the longer HPI history, both metros surged sharply through 2021–2022, then cooled; San Antonio's index has been essentially flat-to-slightly-negative since late 2022, while Raleigh's has held its gains with less volatility — consistent with its reputation as one of the steadier Sun Belt markets.

**Construction & Labor Markets** — Supply pipelines tell divergent stories. Raleigh issued 1,538 permits in July 2026, a sharp -17% decline versus July a year earlier (Census BPS), suggesting builders are pulling back as demand softens. San Antonio issued 1,113 permits in July 2026 — fewer in absolute terms but up +9.7% versus the same month a year earlier, indicating builders there are actually gaining confidence. On employment, Raleigh's labor market is tighter: the unemployment rate was 3.2% in July 2026 (not seasonally adjusted, BLS LAUS), improved from 3.4% in July 2025. San Antonio's rate moved in the opposite direction, rising to 4.3% in July 2026 (seasonally adjusted, BLS LAUS) from 4.0% in July 2025. Raleigh's Research Triangle Park anchor — IBM, Cisco, SAS Institute, and major university systems — supports higher-wage professional employment, reflected in a 2024 ACS median household income of $102,144. San Antonio's more diverse but lower-wage base (military, healthcare, tourism, manufacturing) yields a 2024 ACS median household income of $78,112, a gap of roughly $24,000.

**Rental Costs & Cost of Living** — Raleigh's HUD FY2026 two-bedroom Fair Market Rent is $1,750/month versus San Antonio's $1,426/month — a $324/month difference that matters both for renters and investors underwriting yields. On overall cost of living, San Antonio's BEA 2024 price level of 94.7 (US = 100) is about 4% cheaper than Raleigh's 98.2, meaning everyday goods and services run modestly lower in San Antonio. That said, the gap between the two markets is not dramatic — both sit below the national average, unlike coastal metros.

**Taxes & Ownership Costs** — The state income-tax picture sharply favors San Antonio: Texas has no state income tax on wages (Texas Comptroller, 2026), while North Carolina levies a flat 3.99% (North Carolina Department of Revenue, 2026). For a household earning Raleigh's median of $102,144, that difference is meaningful. However, property taxes flip the advantage: Raleigh's effective rate is 0.66% versus San Antonio's 1.41% (both Census ACS 2024, already reflecting homestead exemptions). On a $400,000 home, San Antonio owners pay roughly $3,000 more per year in property tax than Raleigh owners. Population growth favors Raleigh on a percentage basis (+2.36% YoY per 2025 Census estimate vs. +1.38% for San Antonio), which has historically supported demand. San Antonio's absolute MSA population (2.76M in 2024) is considerably larger, and its 294 annual sunny days and lower average commute of 24.5 minutes versus Raleigh's 213–218 days and 27-minute average commute offer lifestyle trade-offs worth weighing alongside the financial calculus.