by Jordan Brooks
Market Analyst | ALN Apartment Data , Inc .
MARKET UPDATE Stabilized Properties Bounce Back
It has been a bounce back year for San Antonio multifamily so far , though the uncertainty of the eviction moratorium expiration remains . Through May of 2021 the area has taken advantage of a slowdown in deliveries with an average occupancy gain of nearly 2 % and an average effective rent gain of just over 4 %. Both gains were higher not only than the COVID-impacted 2020 numbers , but 2019 as well .
A helpful indication of market conditions is the performance of stabilized properties relative to the market as a whole . For a closer look at just that , conventional properties of at least 50 units will be used , and only properties that entered the year already stabilized .
Average Occupancy and Net Absorption Average occupancy rose by 0.7 % to just over 93 % for stabilized properties through the first five months of the year thanks to strong demand . Net absorption totaled almost 1,200 units after shedding almost 500 net rented units through May of last year . This level of demand was also more than double that from the same portion of 2019 . For the market as a whole , rather than only stabilized properties , net absorption was nearly 2,800 units – a reflection that stabilized properties were not simply poaching residents from prospective lease-up residents .
The Alamo Heights – Terrell Hills submarket led the way with almost 400 net absorbed units through May . Encouragingly , the Riverwalk – Downtown region was also among the demand leaders at the submarket level with more than 170 net units absorbed . A handful of submarkets suffered a net loss of rented units . Balcones Heights – Jefferson area led the submarkets in the loss column but only lost 100 net rented units .