San Marcos, Texas Housing Market

What stands out in San Marcos?

• Asking price per square foot has moved -2.2% a year over five years: among the weakest five-year price growth of 765 tracked cities. Appreciation has been weak, so buy for cash flow.
• Homes for sale are 106% above 2017–2019: among the biggest inventory build-ups since 2017–2019 of 765 tracked cities. Buyers have far more choice than before the pandemic.
• 62% of occupied homes are rented: among the highest renter shares of 765 tracked cities. The tenant pool is deep.

How far have San Marcos prices fallen?

Asking price per square foot in San Marcos is 24.8% below its May 2022 high and down 7.9% over the last year. Prices were above the year before in 63% of months since the data starts, so drops here have not always reversed quickly. 30% of sellers have cut their price. Underwrite with no price growth for now and let the seller carry the next cut.

How much more is for sale in San Marcos than before the pandemic?

There are 436 homes for sale in San Marcos, 106% more than in 2017–2019 at this time of year. More choice means you can walk away from any home priced for the market of three years ago.

How much can you negotiate in San Marcos?

For every 100 homes still for sale, 25 are under contract. In 2017–2019 at this time of year it was 41. The rest are still waiting for a buyer. About 1 in 3 sellers has already dropped their price. Each one has learned their first price was too high. Start your offer below their new price.

The typical San Marcos listing has been on the market 88 days. That is 8% shorter than a year ago. There are 436 homes for sale in San Marcos. That is 7.1 times the tightest month on record, but below the peak of 461. Supply is steady against last year.

What to do about it

• Search San Marcos homes listed 90+ days ago that have already cut their price.
• Offer below the reduced price.
• Keep your inspection and financing contingencies.
• Ask the seller to pay closing costs.
• You can lose a few offers here and still win.

Is now a good time to buy in San Marcos?

The median asking price is 32.8% below its Nov 2021 peak. Per square foot the gap is smaller: 24.8% below the May 2022 high. Part of the drop is smaller homes coming to market. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower. San Marcos prices rose in only 70 of the last 111 months. This market goes up and down. Timing matters here. Growth will not rescue a bad price.

There is no rush. Prices are still coming down. Watch the homes you like. Come back after they cut. Let the seller move first.

Who will rent from you in San Marcos?

Most San Marcos households rent. 62 out of every 100 households are renters. The renter share is growing. Five years ago it was 61 in 100. San Marcos added about 3,300 renter households in five years. Renter households average 2.3 people. Two and three bedrooms fit the typical renter.

Households grew 17% in five years. The housing stock grew 16%. Demand is outrunning supply. 7.2% of homes sit empty. That is normal for a healthy market.

The median San Marcos household earns $54,737 a year. Incomes here have grown 4.4% a year since 2019. Incomes are rising faster than home prices. Affordability is improving. A typical home costs 6.5 times the median income. Most locals cannot buy. That keeps rental demand deep. It also caps the rent they can pay. At 30% of income, a tenant on the median income can pay about $1,368 a month.

To see what one San Marcos address would rent for and cash flow, run it through the app.

When do San Marcos prices dip?

Across 9 full years, San Marcos asking prices ran lowest in February, about 1.7% below the year's average. They peaked in December. The most homes for sale show up in September, about 17% above the yearly average. Shop in September for choice, and expect the softest asking prices in February.

What numbers should you underwrite a San Marcos deal with?

• Price growth to assume — -2.2%/yr. San Marcos grew 3.6% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, San Marcos loses about 2.2% a year. That is the number to type in. Prices fell 7.9% over the last year. Use it for timing. The five-year rate is the better guide.
• Months of carrying cost — 3. Budget at least 88 days of holding costs, the current median listing age, when you exit or refinance.
• Odds you cut your price to sell — 1 in 3. 30% of San Marcos listings have cut their asking price. Underwrite your exit below asking.
• Comp on price per square foot — $197/sqft. The typical San Marcos listing shrank from 2,334 to 1,826 sqft since Jul 2016. So median price hides real growth: 42% per sqft versus 14% on the median. Comp on median price and you will overpay for small homes.

Read how price cuts signal a market turning and how we read these numbers, then run the numbers on a deal.

What is the median home price in San Marcos?

The median asking price in San Marcos is about $354,000 as of Sep 2026, down 4.4% from a year ago. This is the asking price on homes listed for sale. Sites that report sold prices or estimated home values will show a different number. Our San Marcos figures cover the 2 ZIP codes with a San Marcos mailing address, which can reach past city limits.

Is San Marcos a buyer's or seller's market in 2026?

Buyers have more room in San Marcos than usual. We compare San Marcos with 2017–2019 at this time of year: there are 106% more homes for sale; there are 25 pending sales per 100 listings, against 41 then; 30% of sellers have cut their price, against 22% then.

Are San Marcos home prices going up or down?

The median asking price is 32.8% below its Nov 2021 peak. Per square foot the gap is smaller: 24.8% below the May 2022 high. Part of the drop is smaller homes coming to market. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower.

What price growth should I assume for San Marcos?

Assume -2.2% a year. San Marcos grew 3.6% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, San Marcos loses about 2.2% a year. That is the number to type in. Prices fell 7.9% over the last year. Use it for timing. The five-year rate is the better guide.

What is the fair market rent in San Marcos?

HUD's fiscal year 2026 fair market rent for Hays County is $1,852 a month for 2 bedrooms and $2,347 for 3 bedrooms. The figures include tenant-paid utilities and cover the whole county.