MARKET UPDATE
Greater San Antonio Q2 Multifamily Performance
by Jordan Brooks
Market Analyst | ALN Apartment Data, Inc.
The second quarter was expected to be a tough
one as people and businesses continued to
deal with the COVID-19 fallout. At least for the
Greater San Antonio area, the quarter was one of
lost growth more than actual retraction.
Using conventional properties of at least 50 units,
let’s take a closer look at some of the metrics.
Average Occupancy and Net Absorption
The volume of new supply ticked up a bit compared
to the same period last year, with four new
properties totaling around 1,100 units delivered.
Simultaneously, net absorption fell by 72% compared
to Q2 2019 to just 700 units.
Even so, demand offset the new supply enough
to keep average occupancy unchanged in the
quarter at 89%. Interestingly, the 89% mark is where
average occupancy stood at the beginning of the
quarter in 2019 as well. The difference was the 1%
gain during the period that was not present this
year.
The majority of the net absorption for the quarter
occurred in four submarkets, each of which had
a net change in rented units of at least 100 units.
The Balcones Heights – Jefferson area absorbed
about 160 net units and the Great New Braunfels,
La Cantina – Dominion – The Rim and Southwest –
Lackland ALN submarkets were the other three to
surpass 100 net units absorbed. Two regions shed
more than 100 rented units in the second quarter,
Greater Shavano Park – Elm Creek and Alamo
Heights – Terrell Hills lost 110 and 120 net rented
units, respectively.
Average Effective Rent and Concessions
As with average occupancy, average effective
rent change was practically non-existent in the
quarter. The average unit began and ended the
period leasing for $1,016 per month, compared to
$1,015 at the end of June 2019. For some context,
in the second quarter of last year effective rent
growth was 1.7%.
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