San Antonio’s multifamily market has historically been exempt from the fluctuations typical of other Texas cities.
Job growth is the most powerful force behind San Antonio’s multifamily growth. The U.S. military has long been one of the region’s largest employers, and San Antonio has been the beneficiary of the Base Realignment and Closure (BRAC) activity, which consolidated bases and brought jobs from other military installations to San Antonio.
San Antonio is also reaping the rewards of broader regional economic growth, namely the Eagle Ford Shale formation to the south. According to a study by UTSA Institute of Economic Development, drilling at Eagle Ford Shale created about 48,000 jobs in South Texas in 2011. The venture has been a $25 billion boon for Texas, with much of that benefitting nearby San Antonio. The average age of San Antonio’s population is about 33.7, providing a robust base of families and individuals seeking affordable housing.
With job growth looking promising in the coming years, and with the further entrenchment of the major drivers in the region, institutional investors have begun to view San Antonio as a more lucrative multifamily market.
The economic developments of the area – and the ROI on San Antonio multifamily properties continue to look promising.
Source: Texas Real Estate Business | Issue: October 2012 | “San Antonio Snapshot: MultiFamily”