the construction pipeline in this space .
One submarket to account for the larger number of units in this phase of the pipeline was Greater New Braunfels . That area closed October with approximately 2,000 units under construction and led all submarkets for this phase . The Downtown – Riverwalk submarket , a mainstay near the top of the list , finished October with just more than 1,500 units under construction . The other two portions of the market with at least 1,000 units under construction were the East of Downtown – Inside Loop submarket with more than 1,100 units and the La Cantera – Dominion – The Rim submarket with right at 1,000 units under construction . Only five submarkets closed October with no new projects currently being built .
Pre-Construction
Projects in this group are those that are somewhere in the development process but haven ’ t broken ground . Because it ’ s possible to postpone or cancel these projects based on market conditions , they aren ’ t as relevant in the short-term from a supply perspective . However , they can provide some insight into the general expectations for a market . With more than 30,000 units , 60 % of the units in the construction pipeline fall into this category . The Downtown – Riverwalk area will continue to be a focus for new development with more than 7,000 units were in the pre-construction phase to end October . The Greater New Braunfels area is likewise expected to remain a focus for new development over the next few years with around 4,000 pre-construction units currently being tracked . Lastly , the South-Central submarket , with about 3,400 units in this phase , was the only other submarket to have at least 3,000 pre-construction units in the pipeline to end the period . All but two submarkets have at least one project in the pipeline that has yet to break ground
Antonio in 2022 , the slowdown has been overshadowed by negative net absorption that has pressured market-level average occupancy . The construction pipeline is expected to increase its output in 2023 compared to this year , with all of the approximately 15,000 units currently under construction likely to be leasing sometime within the next 24 months . With little reason to anticipate apartment demand materially improving before spring , the new supply flowing into Greater San Antonio is set to further pressure average occupancy for the time being .
Takeaways
While new supply has been on the lower end of the scale relative to recent years for Greater San
www . saaaonline . org | DECEMBER 2022 13