SAN ANTONIO – San Antonio’s apartment market continues to see high occupancy rates and rent increases, according to a new report from ApartmentData.com. A strong job market, increased wages and higher demand for new apartments are all factors that are driving price increases across the country, and especially in the Sun Belt.
At $1,209 per month, San Antonio’s average rental price is 12% more expensive than it was at the end of Q2 last year, according to the report. With high rates of migration into the Alamo City, housing prices have increased dramatically, forcing would-be homeowners to rent until prices stabilize.
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“There’s negative absorption in C-Class properties, but prices are continuing to go up, which is odd,” said Cindi Reed, regional vice president for ApartmentData. “It shows that we may not see a huge decrease in prices, but they may start to flatten out.” Reed explained negative absorption, or more move-outs than move-ins, and increased prices are not sustainable together. “Rental rates can’t go up forever,” she said.
The hottest submarkets in the San Antonio-New Braunfels metro over the past three months include Port San Antonio, which is investing heavily in a campus-style development servicing the defense and technology industries. In addition, New Braunfels is seeing a big surge in new multifamily, office and retail developments.
There are currently 30 residential communities under construction in San Antonio that will bring an additional 7,868 units to the market, according to the report. Sixty-five other communities have been proposed, encompassing another 18,665 units. Occupancy is at 92.6%, down from 93.1% in May. In Texas, only Dallas boasts a greater occupancy rate, at 93.2%. The rate was 91.9% in Austin and 91.4% in Houston.
Editor’s note: This story was published through a partnership between KSAT and the San Antonio Business Journal.
Click here to read the story in the San Antonio Business Journal.