Research 12/ 18/ 2020

San Antonio Q3 Multifamily Market Report: Apartment Developers Active, but Rents Remain Stable

Highlights:

San Antonio Q3 2020 market snapshot
  • The San Antonio multifamily market posted mostly steady performance during the third quarter. Developers brought a wave of new units to the market, but the additional supply should be absorbed over a period of a few quarters.
  • Vacancy ticked higher in the third quarter, rising 20 basis points to 6.4 percent. Year over year, the local vacancy rate has increased by 50 basis points.
  • Asking rents were essentially flat, finishing the third quarter at $989 per month. Local asking rents are 1.2 percent higher than they were 12 months ago.
  • The investment market picked up where it left off prior to the coronavirus shutdown. The median price reached approximately $88,200 per unit, nearly identical to the 2019 median. Cap rates have averaged 5.1 percent this year, down 10 basis points from the average cap rate in 2019.

Read the report