Vigorous hiring buoys San Antonio apartment demand

​​​​SAN ANTONIO – Job growth, particularly in the city’s trade, transportation and utilities industry, as well as in the leisure and hospitality and constru​​ction sectors, is increasing demand for apartments, says Marcus & Millichap in its fourth quarter 2015 apartment report.

Among key findings:

• Companies will add 3,500 jobs locally this year, expanding payrolls 3.4 percent since the end of 2014, when 31,100 positions were created. Professional and business services firms will continue to lead employment growth in the coming months.
• Approximately 5,500 units will be added to apartment inventory this year, an expansion of 3.2 percent from last year. In 2014, deliveries peaked as builders completed 6,200 apartments in the metro.
• Heightened demand for housing will result in the absorption of nearly 8,700 units, pushing down vacancy 200 basis points since the end of last year to 5.2 percent. Vacancy remained flat year over year in 2014.
• Tightening conditions will prompt strong rent growth in the metro. By year end, the average effective rent will top $900, rising 5.8 percent year over year. In 2014, the effective rent grew 4.5 percent.