SAAA July 2020 Special Edition Residence Magazine | Page 20

MARKET UPDATE
Greater San Antonio Price Class Performance
by Jordan Brooks
Market Analyst | ALN Apartment Data, Inc.
The last few months have seen tumult and upheaval
unlike anything in recent decades. To
take a step back and evaluate what the impact
on Greater San Antonio multifamily has
been, let’s take a look at how the different price
classes* have performed in April and May. Only
conventional properties of at least 50 units will be
included.
Class A
The story at the top of the market was a more than
2% drop in average occupancy -- down to just below
80%. On a percentage basis, the properties
with the largest gains were the lease-up properties
that have yet to stabilize. When it came to losses, a
few individual properties lost at least 5% in average
occupancy. One factor was the introduction of
three new properties totaling more than 700 units.
Unlike the same period last year when more than
500 Class A units were absorbed, less than 150 formerly
vacant units were rented in April and May of
2020.
With a 1% increase, Class A properties were the
only subset to gain ground in average effective
rent in April and May. The average unit was renting
at $1,351 per unit to end May. One aspect that
contributed was a decreased reliance on rent
concessions – albeit a slight decrease. A little more
than 40% of conventional properties were offering
a rent discount at the start of April, and that figure
was down to 38% to conclude May.
Class B
As is the case with the remaining three price tiers,
Class B properties largely defended occupancies
at the expense of rent gains. Average occupancy
began and finished the period right around 88%
average occupancy while losing two net rented
units. Interestingly, there are a few lease-up properties
that fell into this second tier, and it was the percentage
gains within those properties that helped
average occupancy at least remain flat. Similar to
the Class A group, a handful of these properties
suffered retractions of 5% occupancy or more.
Average effective rent growth turned negative by
0.9% after posting a 0.8% gain in April and May of
2019. Rent discount availability did increase, but
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