San Antonio Multifamily Report – Summer 2019
- Jul 17, 2019
The nation’s seventh-largest city is facing a sizable economic shift, which is spilling over into the multifamily market. Despite continued robust supply, year-over-year rent growth in San Antonio was on par with the U.S. average, at 2.5 percent through May, more than double the figure recorded at the same time last year. The surge in completions met healthy demand and the occupancy rate in stabilized assets actually inched up 20 basis points over 12 months, to 92.9 percent as of April.
Alamo City is heading toward an urban revival that has picked up pace over the past year. While the leading sector in employment growth was leisure and hospitality (up 8,100 jobs), boosted by the metro’s 300th anniversary, professional and business services added 5,000 positions. This trend is likely to continue, given a sustained interest from office-using companies such as OKIN Business Process Services, which is set to bring more than 1,400 jobs to the city. Ernst & Young also announced the expansion of its financial services and public sector business lines, with plans to hire more than 900 employees combined by 2023.
Transaction activity totaled $457 million in the first five months of the year, following last year’s cycle peak, when more than $1.4 billion in assets traded. With 9,000 units underway, we expect rents to rise 2.6 percent in 2019.