San Antonio Multifamily Report – Fall 2020
While rent growth outperformed major metros in 2020, completions did not decelerate, surpassing the 2019 total.
San Antonio rent evolution, click to enlarge
San Antonio’s multifamily market showed resilience during the second and third quarters, with the metro’s fundamentals outperforming major markets and the nation. Rents rose 0.1 percent on a trailing three-month basis through October to $1,049.
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San Antonio was among the metros with the fewest job losses in the wake of the health crisis. The unemployment figure dropped to 6.6 percent in August, but preliminary data for September signaled a relapse, with the rate rising again to 7.8 percent. The sectors that lost most jobs were leisure and hospitality—which shrunk by 11.2 percent in the 12 months ending in September—and professional and business services, down by 5.8 percent. The largest sector in San Antonio—trade, transportation and utilities—restabilized and gained 800 jobs during the period. Still, the Alamo’s more pressing issue is not related to unemployment, but rather underemployment, as an increasing number of people resort to a mix of part-time jobs.
San Antonio sales volume and number of properties sold, click to enlarge
Developers brought online 4,613 units in 2020 through October—surpassing last year’s total—and had another 9,468 underway, heavily favoring the Lifestyle segment. Meanwhile, investors traded multifamily assets worth $778 million in the first 10 months of the year, down 37 percent compared to the same period in 2019. The average price per unit clocked in at $102,723, marking a 3.2 percent uptick.
