MARKET UPDATE
New Construction Activity Continues Unabated
by Jordan Brooks
Market Analyst | ALN Apartment Data, Inc.
N
New Construction Pipeline (units)
early 24,000 new conventional units have
2300
been delivered in the San Antonio market
over the last five years. After a slight draw-
7069
3807
down in volume in 2019 compared to 2017 and 2018,
the construction pipeline is once again primed for an
increase in new supply. In taking a closer look at the
5728
new construction pipeline through 2020 and beyond,
all unit counts below will refer to conventional units in
Pre-construction
properties with more than 50 units.
Under Construction
Lease-up
nio area. The Far West region of the market is the area
with the most units currently being built, with about
Units Entering the Market
Monthly
Units ground.
vs Net Absorption
1,100 units
having New
broken
Other areas with a
ALN uses two separate designations for properties
2000 relatively high concentration of construction activity
1500
The only difference being that some properties are still include more than 700 units in the East of Downtown
coming online: Lease-up and Construction/Lease-up.
1000
completing construction as they begin leasing, while
others are completed and leasing. To be reassigned 500
as stabilized, a property must reach 85% occupancy
or have been completed for 12 months, whichever
comes first.
0
– Inside Loop submarket and 700 units in the Down-
town – Riverwalk – King William neighborhoods. Only
twelve of the twenty-five ALN San Antonio submarkets
currently have new units under construction.
-500
42736 42826 42917 43009 43101 43191 43282 43374 43466 43556 43647 43739 43831
Pre-Construction
New Units
Properties in this category account for about one-third
of the units in the overall construction pipeline. ALN
is tracking a bit more than 2,300 Lease-up units, and
about 3,800 units in a Construction/Lease-up phase.
With more than 700 new units, the largest quantity of
new product currently being delivered is in the Down-
town – Riverwalk – King William area of San Antonio.
Close behind is the La Cantera - Dominion - The Rim
submarket where almost 600 new units are entering
the market.
Under Construction
Approximately 5,700 units are still under construction
though not yet leasing. These units represent 30% of
the total construction pipeline units for the San Anto-
18
Construct ion/Lease-up
March/April 2020 | www.saaaonline.org
Absorption (units)
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 proj-
ects based on market conditions, they aren’t as rele-
vant in the short-term from a supply perspective. How-
ever, they can provide some insight into the general
expectations for a market. With more than 7,000 units,
37% of the units in the construction pipeline fall into this
category.
There are eight projects that have yet to break ground
in the Downtown – Riverwalk – King William submarket
that will include more than 2,000 new units. No other
submarket in San Antonio currently has more than two
projects planned for development. Despite the clear
focus of development on this area, future construc-