Apartment Demands Continue to Rise
October 17, 2016
Oversaturation in the San Antonio multifamily market has been on everyone’s minds as construction and permits have continued to rise quarter after quarter, however economic developments in the city make it clear that the absorption for new construction will be there. According to the Marcus & Millichap report for Multifamily in the 3Q, San Antonio job growth has not just been steadily climbing, but growing in areas where employees prefer to rent. So although rental completions have risen 40% from 4,425 units in 2015 to 7,100 units in 2015, the success of developments in submarkets across the city, led by the likes of NRP Group, and Embrey Partners Ltd. for example, are almost entirely guaranteed. In addition, a select number of luxury units are slated for the central and northern city submarkets which will give San Antonio a healthy increase in citywide rent average. The current average rental rate is on course to increase 4.2%, a small decline from the 4.4% growth rate of last year. But with one-bedroom units renting at an average of $933, and a healthy rate of job growth and incoming renters, for now oversaturation in the San Antonio multifamily market is one less reason to stay up at night.
Soften those overbuilding fears — demand for apartments continues to rise