only a reversal from positive territory in 2021 but was a considerably larger decline than in 2020 when just over 150 net rented units were shed . 2021 was the fourth year in the last five for Class D net absorption to be negative in January . However , it was the first in that period for the decline to exceed 200 net units .
Submarket Highlights
16 of the 25 ALN submarkets for Greater San Antonio experienced negative net absorption in January , but only two shed more than 100 net units . The Alamo Heights – Terrell Hills area lost just over 150 net rented units and the Balcones Heights – Jefferson submarket saw a net decline of nearly 350 leased units .
As would be expected across a market with a net loss in rented units for the period , the submarkets that did manage to close January in positive territory for net absorption did so by thin margins . The Northeast – Universal City – Like Oak region gained the most net rented units with about 30 . The only other two submarkets to eclipse 10 net absorbed units were Hollywood Park – Camino Real and Windcrest – Converse – Randolph , and each gained less than 20 net rented units .
in March and April of that year , so this comparison is not as foreboding as it may seem .
For the most part , the same dynamic was present across the price classes . An underperformance relative to 2021 to be sure , but not a dramatic decline from the 2018 to 2020 range . January is typically a relatively soft month for multifamily ; 2021 an exception to that rule to a notable degree .
It is also important to note that although demand softened , average occupancy remained unusually high and rent growth was well above the established norm for January . A decrease in year-over-year demand , along with two consecutive months of negative net absorption , may signal an early indication of a slowdown in momentum that will show itself in rent growth in the coming months .
Takeaways
January net absorption remained in negative territory for Greater San Antonio multifamily after crossing that threshold in December . Unlike the nation as a whole , the decline compared to apartment demand in the same portion of 2021 was not as starkly outside the typical range established in recent years . In fact , from a demand perspective January resembled the pre-COVID opening month of 2020 . The effects of the pandemic really began to play themselves out
www . saaaonline . org | MARCH 2022 25