San Antonio LIHTC Expansion: Affordable Housing Update 2025

San Antonio City Council’s District 1 has taken a significant step toward expanding affordable housing opportunities. On November 6, councilmembers approved an increase in Low-Income Housing Tax Credit (LIHTC) thresholds, designed to help developers create homes that reflect local income levels more accurately.

As housing prices continue to rise across Bexar County, the updated LIHTC structure gives builders more flexibility to secure financing and deliver quality homes at attainable price points. This move represents another key milestone for San Antonio’s proactive approach to urban growth and affordability.

Why This Matters for San Antonio

Housing costs have increased throughout San Antonio, putting pressure on families and young professionals trying to find affordable homes near central neighborhoods. The expansion of LIHTC thresholds is intended to ease that burden by enabling more developers to qualify for credits and incentives.

District 1, which covers many of San Antonio’s most historic and densely populated areas, remains central to the city’s long-term housing strategy. This updated policy makes it more feasible to build affordable housing in areas like Tobin Hill, Beacon Hill, and parts of downtown San Antonio.

This change complements the Strategic Housing Implementation Plan (SHIP), which aims to create 28,000 new affordable units by 2031 and develop mixed-income neighborhoods to keep these communities vibrant and accessible.

Community Overview: District 1 & Downtown San Antonio

Source: San Antonio Board of REALTORS® (SABOR), 2025 Market Data

District 1 includes vibrant neighborhoods like Tobin Hill, Beacon Hill, and King William—all benefiting from new affordable housing efforts. These centrally located communities offer proximity to employment centers, cultural attractions, and public transportation, making them ideal locations for affordable housing development.

Real Estate Impact

For Homebuyers and Renters

The new thresholds mean more housing choices close to transit, employment hubs, and cultural amenities. Expanded affordable housing inventory helps moderate rent growth and provides options for families earning between 30% and 80% of area median income (AMI).

For Sellers and Investors

The policy enhances neighborhood stability and supports balanced supply and demand. Contrary to common misconceptions, affordable housing development typically strengthens property values by attracting diverse residents, spurring infrastructure investment, and creating more economically resilient communities.

Expert Perspective

“Affordable housing helps our entire market stay healthy,” says Tami Price, Broker Associate with Real Broker, LLC. “When San Antonio families can find homes within their budgets, it strengthens every part of our city.”

As a USAF Veteran specializing in military relocations and VA loan assumptions, Tami particularly understands how housing policy affects military families stationed at Joint Base San Antonio. “Whether you’re an active-duty service member, a veteran, or a military spouse, having access to quality, affordable housing near both the base and downtown employment centers makes San Antonio a more attractive place to call home.”

The policy update may also encourage redevelopment of underutilized lots, boosting both community growth and property values across central corridors like Fredericksburg Road and Broadway. Recent city investments, including a $12 million affordable housing initiative funding 368 rental homes, demonstrate San Antonio’s commitment to this strategy.

Three Key Takeaways

1. District 1 raised LIHTC thresholds to stimulate affordable home construction in high-cost, centrally-located neighborhoods.
2. The change supports San Antonio’s Strategic Housing Implementation Plan (SHIP), working toward the goal of 28,000 new affordable units by 2031.
3. Increased development and investment may stabilize prices and expand housing options in central areas, benefiting buyers, renters, and the broader community.

The Bottom Line

San Antonio continues leading Texas cities working to expand affordable housing. Increasing LIHTC thresholds not only spurs new construction but also encourages balanced growth benefiting residents citywide.

For buyers, sellers, and investors, staying informed on local housing policy changes makes your real estate decisions stronger and more strategic. Understanding how initiatives like the SHIP plan and LIHTC expansions affect neighborhoods can help you identify opportunities and make confident decisions.

Ready to Navigate San Antonio’s Evolving Housing Market?

Whether you’re a first-time homebuyer, a military family seeking housing near Joint Base San Antonio, a seller looking to understand how neighborhood changes affect your property value, or an investor exploring opportunities in central San Antonio, having an experienced local expert makes all the difference.

Contact Tami Price, REALTOR® at 210-620-6681 to learn how these developments may affect your real estate goals.

Frequently Asked Questions

What is the Low-Income Housing Tax Credit (LIHTC)?

The LIHTC is a federal tax credit program created by the Tax Reform Act of 1986 that encourages developers to produce affordable rental housing for families with low to moderate incomes. It’s the most successful affordable housing production program in U.S. history, having created approximately 4 million affordable apartments nationwide. San Antonio adjusts local income thresholds to guide how these credits are distributed within the city.

How will the LIHTC threshold expansion benefit San Antonio residents?

By raising thresholds, more development projects in higher-cost neighborhoods become eligible for tax credits. This means affordable units can be built in areas with better access to jobs, schools, healthcare, and public transportation—locations that were previously financially unfeasible for affordable housing development. Residents benefit from expanded housing choices in desirable, well-connected neighborhoods.

Which neighborhoods will likely see new affordable homes?

Tobin Hill, Beacon Hill, Five Points, King William, and downtown neighborhoods are primary focus areas for affordable housing development. These District 1 neighborhoods offer proximity to employment centers, cultural amenities, and public transportation, making them ideal for mixed-income development. The San Antonio Housing Trust currently has multiple LIHTC projects in development across these areas.

Does the LIHTC expansion affect both renters and homeowners?

Primarily, the LIHTC supports rental housing development. However, increased affordable housing often contributes to long-term neighborhood stability, benefiting homeowners through infrastructure improvements, enhanced services, and increased economic activity. A healthy rental market also provides options for homeowners who may need to temporarily relocate or transition between properties.

How does this update align with San Antonio’s broader housing strategy?

It supports the Strategic Housing Implementation Plan (SHIP), adopted by San Antonio to address the city’s affordable housing needs through 2031. SHIP takes a comprehensive approach, combining zoning reforms, financial incentives, public land dedication, and partnerships with developers to create 28,000 affordable units across the city. The LIHTC threshold increase is a key implementation tool for achieving these goals.

Is now a good time to invest in central San Antonio real estate?

Yes. The rise in affordable and mixed-income developments is expected to spur growth and revitalization in downtown and nearby areas. Market conditions suggest significant opportunity for strategic investment, with population growth of 22,000 new residents annually, infrastructure development, and supportive housing policies creating a strong foundation for appreciation. Properties in District 1 neighborhoods near planned affordable housing developments may particularly benefit from increased foot traffic, improved amenities, and neighborhood revitalization.

However, every investment decision should be based on individual financial circumstances and goals. Contact Tami Price for personalized market analysis and investment guidance.

About Tami Price, Realtor®

Tami Price is a Broker Associate with Real Broker, LLC, serving San Antonio, Schertz, Helotes, Cibolo, Converse, Boerne, and surrounding communities. As a USAF Veteran, she specializes in military relocations, VA loan assumptions, first-time homebuyers, and new construction homes.

Contact Tami:

Phone: 210-620-6681
Website: www.tamiprice.com
Email: tami@tamiprice.com

Disclaimer

All information provided is for educational purposes and should not be considered financial or legal advice. Consult with qualified professionals for guidance specific to your situation. Statistics are current as of November 2025 and subject to change.