Fundamentals Oscillating In San Antonio
San Antonio’s multifamily market was a mixed bag at the start of the second quarter, according to the latest Yardi Matrix San Antonio multifamily market report. Rent growth marked the eighth consecutive month in negative territory, down 0.1% on a trailing three-month basis through March, to $1,259, while the national rate rose 0.2%, to $1,721. On a year-over-year basis, the metro’s rent decline was at -1.9%, while the U.S. rate rose 0.9%, notes the most recent national multifamily report. Meanwhile, occupancy decreased, down 140 basis points year-over-year, to 91.4%.
San Antonio unemployment stood at 4.1% in February, lagging the state and U.S. rates, which both held at 3.9%, according to preliminary data from the Bureau of Labor Statistics. In 2023, the job market expanded 2.7%, or 36,700 jobs, outperforming the 2.0% national rate. Two sectors lost jobs—information and manufacturing—but the losses were limited, at just 400 jobs combined. Moreover, the latter is poised for expansion, as JCB announced plans for a manufacturing facility that will create 1,500 jobs over the next five years. Education and health services and government led employment gains, accounting for half of the positions added in 2023.
San Antonio’s supply expanded by 1,035 units during the first quarter of 2024. The pipeline had 21,103 units under construction, but activity is softening, with fewer construction starts recorded during the period compared to last year’s corresponding time frame. Meanwhile, investment volume totaled just $124 million, for a price per unit of $105,384 in March, well behind the $196,096 U.S. figure.
Read the full Yardi Matrix San Antonio Multifamily Market Report: May 2024
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