MARKET UPDATE
Checking in on Rent Growth
by Jordan Brooks
Market Analyst | ALN Apartment Data , Inc .
In many ways the multifamily industry has been right in the middle of the disruption brought on by the pandemic and the various response measures taken this year . All of this has affected industry performance , and whereas earlier in the year the most obvious impact was on apartment demand , it is now rent growth that stands out .
Using conventional properties of at least 50 units , let ’ s take a closer look at rent performance and which segments have managed some level of growth this year .
Greater San Antonio Market Overall
As previously stated , as recently as early third quarter of this year apartment demand nationally remained significantly below that of 2019 . The construction pipeline had not slowed and so the effect was dramatic on rent growth . Since then , demand has roared back almost to the point of catching 2019 on a year-todate basis . Not so for rent growth , however . The factors at play in this current dynamic are interesting , but for the sake of space here , the national look is included simply for context .
What about Greater San Antonio ? Well , apartment demand through November has been higher this year than in 2019 thanks to the last few months . In this regard , San Antonio outperformed the country overall . On the rent front , though , the national trend held . After a 3.2 % gain in the first eleven months of 2019 , average effective rent growth for this year stood at 1.1 % to end November . That certainly is preferable to average rent losses experienced in other markets but is well short of last year ’ s mark .
In many markets around the country , depressed rent growth has a lot to do with increased lease concessions this year . In San Antonio , it appears rent growth has been lessened more due to less aggressiveness on the part of operators . The availability of rent