San Antonio Q4 Multifamily Market Insights: Investment Activity Sparked by Strengthening Operations


  • A healthy rebound in hiring, particularly during the fourth quarter, supported the San Antonio multifamily market. Renter demand outpaced new supply, driving the area vacancy rate lower and fueling rapid rent growth. Additional economic expansion is likely in 2022.
  • Apartment vacancy in San Antonio dropped in all four quarters of 2021. During the final three months of the year, vacancy dipped 10 basis points to 5.2 percent. For the full year, vacancy tightened 150 basis points, reaching the lowest figure in over four years.
  • Asking rents increased at a rapid pace during 2021, advancing 11.4 percent to end the year at $1,102 per month. Rents advanced 3.6 percent during the fourth quarter, building on gains that had been achieved in the middle part of the year.
  • Investment activity surged in the fourth quarter, doubling sales from the previous period. The increased investor demand pushed prices higher while applying downward pressure on cap rates. In transactions where pricing was available, the median sales price closed out the year at $140,300 per unit, up 56 percent from the 2020 figure.

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