APARTMENT DEMAND IMPROVED IN THIRD QUARTER
O C T O B E R E D I T I O N
By Jordan Brooks , Senior Market Analyst , ALN Apartment Data
The Greater San Antonio market has experienced a year similar to many others across the state and the country . Lukewarm demand and a very active new construction pipeline have conspired to pressure both average occupancy and average effective rent growth . However , the third quarter did provide something of a bright spot in the midst of a challenging year : a marked improvement in demand . All numbers will refer to conventional properties of at least 50 units .
JORDAN BROOKS
New Supply and Net Absorption
Approximately 1,800 new units were delivered across the Greater San Antonio market in the third quarter . This level of new supply was slightly lower than during the same period last year but was nonetheless near the top of the range established over the last handful of years . In total , more than 5,000 new units have now been delivered through September – significantly more than in any recent year through three quarters .
Class C experienced a decline in average effective rent of around 1.5 %, and Class D suffered a loss of nearly 2 %. In the top two price tiers , Class B saw a loss of 0.1 % in the period and the Class A group led the way with a 0.1 % gain .
Interestingly , only three of the 25 ALN submarkets in the area saw any new deliveries in the third quarter . Both the Boerne – Comfort and Stone Oak – Sonterra had one new property delivered in the period while the Greater New Braunfels submarket added nearly 1,000 new units across three properties .
24 OCTOBER 2023 | WWW . SAAAONLINE . ORG