ed . A decrease of just below 20 % brought the average package value to around 2.5 weeks off a 12-month lease .
Classes C and D
On a percentage basis , the price Class C increase in demand from recent years more closely resembled Class A than Class B . Net absorption of approximately 1,500 units was 53 % higher than in the same period in 2019 and propelled average occupancy to above 94 % after a gain of almost 2 %. For Class D properties , the overperformance of demand was most pronounced in terms of percent change . Around 900 net units were absorbed through July , more than double the total from 2019 . As a result , Class D average occupancy rose by more than 2 % to close the month at 93 % overall .
Average effective rent growth for Class C properties stood at 6 % to close July with the average unit leasing for $ 1,021 per month . This gain easily outpaced the 4 % result from 2019 , but not by the same margin as the top two price classes . For Class D , 2021 rent growth has underperformed the pre-pandemic number from 2019 . Average effective rent rose by 3 % through the first seven months of that year , while this year the gain has been 2 % -- up to $ 866 per unit monthly .
It should also be noted that while lease concession activity for Class C properties roughly approximated the top two tiers in terms of changes in availability and average value , Class D properties saw a 3 % uptick in the average discount value . This increase came even as concession availability dropped by 11 % to about one-third of conventional Class D properties .
Takeaways
At the market level , the Greater San Antonio multifamily recovery has been firing on all cylinders . However , zooming in somewhat to the price class level does elucidate some differences in how the market has bounced back from last year . Class A properties have been the engine of this year ’ s developments , with strong demand and a slowdown in new deliveries allowing operators to ease up on lease concessions and realize historic rent gains . The story was much the same in the Class B space , but not to quite the same extent . The Class C subset has also posted results well beyond what is typical in terms of apartment demand and rent growth : just not by so much that analysts would feel the need to double and triple check the data when reviewing the numbers .
Despite very robust absorption , Class D continues to show signs of some challenges . Rent growth has been more muted than in pre-pandemic 2019 and concessions continue to play a more significant role .
Overall , the strength of apartment demand for the area is a fantastic development that points to strong underlying fundamentals as 2020 moves further into the rearview mirror . However , rent growth to the extent seen in the top price tiers will act as a headwind at some point and the Class C growth in particular will further impact affordability issues . As the debate between transitory and “ sticky ” inflation rages , it bears keeping in mind that gains in housing costs are one of the major drivers of longterm inflation .
www . saaaonline . org | SEPTEMBER 2021 15