MARKET UPDATE Class A Properties Lead the San Antonio Rent Surge
Class B demand , with net absorption totaling about 2,300 units , was 26 % higher than in the same portion of 2019 . That wave of residents brought average occupancy to more than 93 % after a 4 % increase from the start of the year .
Here too , both average market and average effective rent were up more than 10 % for the year at the end of July . Average market rent rose by 11 % while average effective rent gained 13 % to end at $ 1,246 per unit per month . The decrease in lease concession availably was even more pronounced than in the Class A subset . A 58 % decline in availability brought the share of Class B properties offering a discount to only 18 % - well below the 26 % mark from July 2019 . On the discount value side , the average concession decrease was more mutby Jordan Brooks
Market Analyst | ALN Apartment Data , Inc .
Class A Properties Lead the San Antonio Rent Surge Between once-in-a-decade net absorption , dramatically receding lease concessions , and historic rent growth the Greater San Antonio multifamily market has rebounded strongly through July of 2021 from the challenges of 2020 . Below just the market level numbers , some interesting developments have occurred that give a more nuanced picture of current market conditions . One such perspective is how the year has played out from the perspective of price class .
As always , numbers will refer to conventional properties of at least 50 units .
Class A
In a typical year , the 10 % average occupancy gain through July for Class A properties across Greater San Antonio would be the headline . Though , as no one needs to be reminded , 2021 is not a typical year . A draw down in new supply compared to recent years paired with a strong increase in Class A demand resulted in the double-digit gain to bring Class A average occupancy to 91 % to close July . Net absorption of close to 2,900 units not only significantly outpaced last year ’ s COVID-affected total through the same portion of the calendar but was 65 % higher than in 2019 as well .
As eye-catching as the 10 % occupancy gain no doubt was , average effective rent growth topped 10 % for Class A properties . A 17 % increase in the seven-month period resulted in the average Class A unit leasing for $ 1,500 per month . The appreciation was not solely due to receding lease concessions , although that was a driving force . Operators were also more aggressive with asking rents with average market rent gaining 13 % in the period . Discount availability decreased by just under 50 % from the start of the year , as did the average discount value . 28 % of Class A properties were offering a lease concession at the end of July with an average value of just over two weeks off an annual lease . Both metrics are substantially lower than in July of 2019 .
Class B