NEW CONSTRUCTION SET TO SLOW IN 2025
J A N U A R Y E D I T I O N
By Jordan Brooks , Senior Market Analyst ALN Apartment Data
Without a doubt , the metric that stood out most for 2024 multifamily performance in Greater San Antonio was new supply . It is true that net absorption this year has roughly tripled last year ’ s figure . It is also true that market average occupancy remains well below the long-term average and that rent growth notably underperformed . Even so , new supply through November of this year equaled the number of new units delivered in the same portion of the last three years combined . In 2025 , new units should decline some , but not dramatically so . With the year quickly drawing to a close , now is a perfect time to take one final look at new supply in 2024 .
All numbers will refer to conventional properties of at least fifty units .
JORDAN BROOKS
Recently Delivered Units
More than 12,500 new units were delivered across Greater San Antonio through the first eleven months of 2024 . This level of new supply more than doubled last year ’ s total through November and represented the high-water mark for the last two decades . The two submarkets with the most new supply so far in 2024 were both smaller areas of the market . Greater New Braunfels saw around 2,400 new units delivered and the Northwest – Helotes region added just more than 1,300 new units . The Downtown – Riverwalk submarket added nearly 1,000 new units . One area that did not see a huge number of new units in the aggregate but stood out on a size-adjusted basis was Seguin . Approximately 450 new units totaled about one-quarter of the existing conventional multifamily stock .
In all , about two-third of Greater San Antonio submarkets saw some level of new supply through November .
Units Under Construction
Of the more than 55,000 units in some phase of the new construction pipeline , close to 12,000 units were under construction at the end of November . Deliveries in 2025 are expected to be in the neighborhood of 7,000 units . This would represent a considerable reduction from the 2024 peak but would still make 2025 the second-most active year for new supply in the last decade .
This level of new supply more than doubled last year ’ s total through November and represented the highwater mark for the last two decades .
18 JANUARY 2025 | WWW . SAAAONLINE . ORG