INDUSTRY PERFORMANCE A MIXED BAG AT THE MIDWAY
POINT OF 2024
JORDAN BROOKS
New Supply
By Jordan Brooks , Senior Market Analyst ALN Apartment Data
Amazingly , the first half of 2024 has come and gone . For the multifamily industry nationally , the year has largely played out according to expectations . Apartment demand continued the moderate but steady improvement that began last year . Even so , net absorption has been unable to keep pace with new supply . The imbalance has put further downward pressure on average occupancy and has made rent growth somewhat challenging to capture .
The story has been much the same for Greater San Antonio . The first six months of the year provided both some positives and some reminders that challenges remain .
All numbers will refer to conventional properties of at least 50 units .
A U G U S T E D I T I O N
More than 7,100 new units were delivered in the first half of the year across Geater San Antonio . This level of new supply was more than double the total from the same portion of last year , and last year ’ s total was already higher than any recent prior year . In fact , this year ’ s new supply through June was higher than the combined new supply from the first half of 2021 , 2022 and 2023 .
The Greater New Braunfels area led the way with just under 1,000 new units delivered so far this year . Other active submarkets included Thousand Oaks – North of Starcrest and Northwest – Helotes with approximately 800 and 700 new units , respectively . In all , fourteen of twenty-five ALN submarkets for Greater San Antonio had at least one new property delivered .
Net absorption of just more than 1,900 units easily outpaced last year ’ s 130-unit result and was markedly better than the net loss of nearly 1,600 leased units in the first half of 2022 .
Net Absorption & Average Occupancy
Apartment demand showed notable improvement relative to the last couple of years , but that improvement was not enough to offset the surge in new supply . Net absorption of just more than 1,900 units easily outpaced last year ’ s 130-unit result and was markedly better than the net loss of nearly 1,600 leased units in the first half of 2022 . Even with the steady improvement , ground remains to be made up compared to roughly 3,700 net absorbed units in the same portion of 2019 - the last pre-pandemic year .
19 AUGUST 2024 | WWW . SAAAONLINE . ORG