Average Lease Concession Value
The average lease concession value is calculated from amongst only those properties offering a discount so as not to artificially deflate the average . The average discount value in Greater San Antonio at the end of August was 6.9 % off an annual lease , or 3.6 weeks . The average is about 9 % higher than at the start of the year and that increase through August was the highest since 2022 when net absorption was negative . To put the current average value into context , the last time Greater San Antonio had an average discount value as high was in April of 2010 . This is not just the case of an outlier month . Over the last twelve months , the average for lease concession value has been 6.4 %. No twelve-month period has had an average that high since January through December of 2010 .
Also of note is the lack of seasonal help for this metric . As with concession availability , before 2020 the average lease concession value would usually decline during the summer period . 2024 is now a third consecutive year in which that has not occurred . Rather , the average has been on the rise all year . That the two lease concession metrics diverged in this way during the summer is an indication that the apartment demand bounce was enough to allow some properties to move away from discounts . But , for those for which that was not the case , operators leaned even more heavily on them .
Takeaways
Lease concessions are playing a more pronounced role in the Greater San Antonio multifamily market than has been the case in more than a decade . Discount availability is at its highest since 2014 , and the average discount value has now reached a level not seen since the later period of the Great Recession era .
Both metrics are waxing across the price classes and amongst both stabilized and lease-up properties . A slight reprieve in concession availability was achieved during the summer , but with the softer fall and winter portion of the calendar ahead for apartment demand , it is likely both concession metrics will climb further in the coming months . For concession availability , a significant amount of ground remains before approaching the Great Recession peak when nearly three-quarters of properties were offering a discount . For the average concession value , the Great Recession peak is well within sight . There is no guarantee , but that peak could be surpassed before spring arrives .
* Jordan Brooks is a Senior Market Analyst at ALN Apartment Data .
The average discount value in Greater San Antonio at the end of August was 6.9 % off an annual lease , or 3.6 weeks .
For properties that entered the year already stabilized , the picture is similar . An average discount value of 3.2 %, or 3.3 weeks off an annual lease , in August was the highest since September of 2010 . Over the last twelve months , the overall average has been the highest since July of 2010 through June of 2011 . This was a period that saw a steadily declining average concession value from the peak of the Great Recession . In the current moment , the average continues to steadily climb .
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