San Antonio: apartment availability dwindles, rents escalateSan Antonio: apartment availability dwindles, rents escalatehttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=108092015-10-20T05:00:00Z2015-10-20T17:00:00Z

​​​SAN ANTONIO - Tenants searching for accessibly priced apartments will face a dwindling pool of options as demand for Class B and C multifamily properties push rents even higher.

As employment in San Antonio's medical, financial and technology fields continues to swell, the focus over the past few months has been on rising demand for Class A properties in and around those major workforce hubs.

However, according to Marcus & Millichap's Third Quarter2015 Multifamily Research Report​​​, all of the new development in the city — combined with a rise in seasonal festivals and conventions — will boost the workforce in the hospitality industries, prompting increased demand for more workforce multifamily housing.

The report found that leisure and hospitality employers added nearly 3,000 positions in second quarter 2015. Meanwhile, construction payrolls increased by more than 5,000 workers over the past 12 months. With these industries expected to grow even more, the need for more workforce housing will only intensify.

As demand for lower-priced apartment units continues to soar, rents for those will begin a climb of their own. Already, apartment buildings constructed in the 1980s — a majority of which are classified as B and C properties — saw strong rent growth as a result of significant drops in vacancy over the past few quarters.

Marcus & Millichap reported that on average, residents in these complexes pay roughly $735 a month, which equates to a 5.5 percent increase over the past year.

Citywide, and across all multifamily classifications, average rents increased 2.1 percent in the last quarter to $879 per month. Over the past 12 months, rents increased by an average of 5.3 percent.

Developers around the city are realizing the need for more workforce housing, but most of them are still figuring out how to make the projects economically feasible.
San Antonio Business Journal
San Antonio-New Braunfels
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