Rents, Occupancy Follow Market Slowdown
San Antonio multifamily market fundamentals began softening, especially in transaction and new construction volume. The metro’s rent movement was negative for four consecutive months, down 0.3% on a trailing three-month basis through March to an overall average of $1,274. The rate trailed the U.S. figure, which remained flat, at $1,706. The occupancy rate in stabilized properties also fell 170 basis points in the 12 months ending in February, to 93.0%.
The jobless rate clocked in at 4.3% in February, faring better than the state (4.0%) and Houston (4.8%), but lagging the U.S. (3.6%), Austin (3.7%) and Dallas (4.1%) according to preliminary data from the Bureau of Labor Statistics. The employment market expanded by 4.6%, or 46,600 jobs, in 2022, leading the 3.7% U.S. figure. Two sectors lost a combined 4,100 jobs—professional and business services and mining, logging and construction—but San Antonio’s economy is strong and diverse enough to withstand upcoming distress.
Deliveries through March were scarce, with just 78 units in one fully affordable community coming online, but the construction pipeline had 16,000 units underway, 8,455 of which Yardi Matrix forecasts will be completed by year-end. Meanwhile, investors traded just $176 million in multifamily assets, coming in at just over $100,000 for an average price per unit.
Read the full Matrix Multifamily San Antonio Report-May 2023