I-35 NEX Is 82% Done — Here's What That Means for San Antonio Home Buyers, Sellers and Investors Right Now

If you drive I-35 through San Antonio regularly, you already know the construction is real, constant and seemingly everywhere. What you may not fully appreciate yet is how much the I-35 Northeast Expansion — known as I-35 NEX — is reshaping property values, rental demand and neighborhood trajectories all along the corridor. As of this weekend, the numbers tell an encouraging story for anyone with a stake in San Antonio real estate.

The Central segment of I-35 NEX, a roughly $1.62 billion project, is now 82% complete as of September 19, 2026, with an estimated finish in late 2027. South Phase 1, priced at around $654 million, is 64% complete and expected to wrap up in late 2028. And South Phase 2 — running from Walters Street to Loop 410 South at approximately $342 million — broke ground in January 2026 and is targeted for early 2030. That is a lot of money, a lot of concrete and a lot of years still ahead. But the Central segment being this far along means the finish line is genuinely within sight for at least one major piece of the puzzle.

For home buyers, the practical takeaway is timing. The neighborhoods closest to the Central segment — think the corridor running through the near north side, including areas around the UTSA vicinity and communities feeding into the North East Independent School District — have been living with construction noise and traffic disruption for years. Some buyers have avoided those pockets precisely because of the congestion. That hesitation may be worth reconsidering now. An 82% complete project due in late 2027 is close enough that a buyer purchasing today could be settling into a finished, improved corridor within roughly a year of closing. Buyers who wait until after completion will likely pay more.

Sellers in neighborhoods along the I-35 NEX path face an interesting calculation. Construction fatigue has probably kept some demand suppressed, which means values in those areas may not yet fully reflect what improved access and reduced commute times will eventually deliver. If you have been thinking about listing a home along this corridor and your timeline is flexible, there is a reasonable argument that waiting another 12 to 18 months — as the Central segment delivers — could support a stronger price. If your timeline is not flexible, pricing competitively now and being transparent about what buyers are getting once construction ends is the right approach.

For investors, the picture across all three segments is worth studying carefully. South Phase 1 covering the southern stretch toward the edges of the South Side and communities near the Harlandale Independent School District area is 64% along and due in late 2028. South Phase 2, from Walters Street down to Loop 410 South, is the youngest piece of this project and will not be finished until early 2030. That four-year runway on Phase 2 means land and properties in those zones are still in the pre-appreciation window. Investors with a longer hold horizon who can manage through the remaining construction period are looking at areas that have not yet priced in the full benefit of the completed highway.

Rental property owners and landlords along the corridor should be thinking about tenant retention and unit quality. Construction zones tend to push some renters away temporarily, but completed infrastructure almost always pulls demand back — and then some. If you own rental property in ZIP codes like 78207, 78210 or 78211 near the southern segments, now is a reasonable time to invest in upgrades so your units are competitive when the improved access draws more residents to those areas over the next few years.

One thing worth saying plainly: highway projects of this scale rarely run perfectly on schedule, and the estimated completion dates should be treated as targets, not guarantees. Anyone making a real estate decision based heavily on a specific completion date should build in flexibility. What is not speculative, however, is that this is a multi-billion-dollar public infrastructure commitment to the I-35 corridor, and infrastructure investment of that magnitude has a documented track record of lifting nearby property markets over time.

The Central segment being 82% done is genuinely significant news for San Antonio real estate. It means that for the first stretch of I-35 NEX, the disruption phase is winding down and the benefit phase is approaching. Communities along the corridor — from the near north side through the south — will experience the effects at different times as each phase completes, which creates a staggered set of opportunities depending on your goals and timeline.

Whether you are buying a primary home, evaluating a rental investment or deciding when to list, understanding where this project stands right now gives you an edge that many people in this market simply do not have.