by Jordan Brooks
Market Analyst | ALN Apartment Data , Inc .
MARKET UPDATE Q1 2021 Review : Greater San Antonio Multifamily
The first quarter is in the books , and spring is officially here . After a challenging 2020 , the industry performed encouragingly in the first quarter of the new year at the national level . Apartment demand was significantly higher than in the opening quarter of last year , as was new supply , and net rent growth was better than in recent years .
Now with the national perspective in mind , a closer look at Greater San Antonio multifamily . As always , numbers will refer to conventional properties of at least 50 units .
Supply , Demand , and Occupancy
Whereas new construction deliveries ramped up considerably in the first quarter nationally , the San Antonio market experienced a drawdown in new supply to open the year . Fewer than 400 new units were introduced in the quarter compared to more than 2,000 new units delivered in the first three months of last year . Inversely , apartment demand easily outpaced that from Q1 2020 this year with more than 700 net units absorbed . The Stone Oak – Sonterra ALN submarket was the area with the most active with more than 360 net absorbed units . Interestingly , the Downtown - Riverwalk submarket absorbed second-most with more than 230 net absorbed units .
As a result of this changed supply-demand dynamic , the San Antonio market managed to add slightly to average occupancy at the market level and closed March at 90 %. This positive , though slight , movement in occupancy follows two consecutive first quarters in which San Antonio average occupancy declined .