MARKET UPDATE
Stabilized Properties Holding their Own
Kerrville area where average occupancy declined by more than 5 % for stabilized properties . In the Downtown – Riverwalk – King William submarket , average occupancy retracted by just over 3 % and the Alamo Heights – Terrell Hills region lost nearly 1.5 %.
Average Effective Rent and Concessions
Average effective rent for properties that began the year already stabilized rose by 0.3 % through August , bringing the average unit to $ 1,003 per month . For the market as a whole , the gain was 0.9 % bringing the average unit to $ 1,019 per month . 37 % of stabilized properties were offering a discount to end August , a proportion unchanged from the start of the year . Similarly , the average concession value , calculated from only those properties offering a discount , has been relatively unchanged since the start of the year as well . The average discount is 5.4 % off a 12-month lease , or stated another way , just under three weeks off a 12-month lease . Some familiar names show up on the list of submarkets to suffer the largest average effective rent lossby Jordan Brooks
Market Analyst | ALN Apartment Data , Inc .
I n what is a very welcome development , multifamily performance over the last three months for the Greater San Antonio area has approximated that of the same period in recent years . Though , from a year-to-date perspective , 2020 remains well short of what industry participants have grown accustomed . At a time when the most dramatic change has been to demand , and particularly demand at the top of the market for many areas , new supply can have an impact on market-level numbers that obscures the performance of existing properties . For this reason , let ’ s take a closer look at how properties that entered 2020 already stabilized have fared through the first eight months of the year . Only conventional properties of at least 50 units will be included .
Average Occupancy and Net Absorption
After a net increase of about 1,600 rented units since the start of the year , stabilized properties finished August just below 93 % average occupancy – an increase of about 0.9 % this year . Average occupancy change for the San Antonio market overall was an increase of 0.5 %. Total net absorption for the market was around 4,400 units , so while demand was more centered in the lease-up subset , there has at least been enough demand within stabilized properties to add to occupancies . This is something that was not a given back in April or May . A few specific areas were exceptions , led by the