Projection: San Antonio apartment demand strengthens amid job growth

​​​SAN ANTONIO – Employment gains are keeping vacancy historically low despite an influx of deliveries this year in the multifamily market, according to Marcus and Millichap’s third quarter 2016 market report.

Among Marcus & Millichap’s other local projections for 2016 year-end:

• Rental completions will reach a historic high this year, as developers add 7,100 units to stock.
• ​Vacancy will sit at 6.2 percent by year-end, up 10 basis points from last year.

  Record-setting deliveries will minimally impact metro vacancy this year, a testament to strong rental demand.
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• ​Strong renter demand will facilitate rent growth this year. The average effective rent will increase 4.2 percent in 2016, ending the year at $933 per month. 

Outlook: Class B and C assets will remain in high demand, but the completion and lease-up of a number of Class A properties will attract institutional buyer attention, increasing the pool of active investors in the market.​​