Rents, Transactions Shoot Up
San Antonio proved resilient following the onset of the pandemic and the city’s multifamily market benefited from an influx of work-from-home employees. Its population expanded by 1.6% in 2020, boosting rents further. The average rate rose 1.5% on a trailing three-month basis through August, to $1,149. Occupancy in stabilized properties rose 1.0% in the 12 months ending in July, to 93.9%.
The unemployment rate in San Antonio stood at 5.4% in July, on par with the national rate and outpacing the 6.2% Texas average. Employment marked the second-consecutive month of positive year-over-year expansion, rising 2.8% through June for 63,500 jobs across sectors, which placed San Antonio as one of the nation’s best among major metros. Professional and business services led gains, also sustained by work-from-home policies, and added 26,000 jobs during the period. Leisure and hospitality (17,300 jobs) came in second, boosted by the reopening of SeaWorld San Antonio, Six Flags Fiesta Texas and other leisure destinations.
Strong demand encouraged more development, with 3,767 units delivered in 2021 through August and another 11,463 apartments underway. Transaction activity amounted to $1.4 billion through August, already above last year’s total. Increased investor interest in the metro has helped push the price per unit up by 20.0% year-over-year, to almost $130,000.
Read the full Matrix Multifamily San Antonio Report-Fall 2021