San Antonio apartment market will soften, continue to climbSan Antonio apartment market will soften, continue to climbhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=12702015-04-15T13:13:00Z2015-04-15T08:00:00Z

SAN ANTONIO - San Antonio's apartment market will not be immune to the drop in oil prices, but continued increases in employment, construction and rents will bolster its long-term health.

According to Marcus & Millichap's First Quarter 2015 Apartment Research market report, the city's job growth and accelerating interest among investors will be the top drivers for the rental market throughout this year.

Particularly in the north and northwest areas of the city, apartment development will accelerate due to the thousands of professional jobs being created in those regions.

The report found that young professionals are moving into the metro as job openings and hiring's continue to climb, resulting in an increased demand for nearby rental housing.

While rent growth is expected to slow this month, the softening is expected to be temporary — as the pace of deliveries declines toward the end of the year. Once the development pipeline begins to empty, demand will have a chance to catch up with the influx of new supply.

Here are some other highlights from the report:

  • Construction will climb slightly, as builders bring 6,500 apartments to the market this year, following last year's 6,300.
  • Vacancy will rise to 7.9 percent as construction remains elevated this year.
  • Average rent growth will slow from last year's 4.6 percent increase, rising 3.8 percent to nearly $900 a month.
  • Builders completed 2,100 apartment units throughout the first quarter of 2015, and combined, developers have brought 6,400 units into stock over the past 12 months, equating to a 4 percent rise in inventory.

Read more at the San Antonio Business Journal.

Click here for access to the full report from Marcus & Millichap.

San Antonio Business Journal
San Antonio-New Braunfels
http://www.bizjournals.com/sanantonio/news/2015/04/13/san-antonio-apartment-market-will-soften-but.htmlRead more at {Source}

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