Marcus & Millichap: Job growth supporting San Antonio multifamily

​​​SAN ANTONIO – Local job creation strengthened apartment demand and pushed vacancy to near-historical lows during the third quarter, Marcus & Millichap said in its fourth quarter market update.

The firm expects "robust absorption trends" through the remainder of the year to keep vacancy below 6 percent.

"An influx of Class A apartments softened conditions in the northern portion of the metro this year, but the construction pipeline is beginning to thin and shift to other areas of the market. As a result, the increase in vacancy in these units will be short term as assets stabilize amid healthy job creation in higher-wage industries nearby."

Meanwhile, hiring in service-oriented and consumer-driven sectors is supporting "vigorous demand" for Class B and C units, with vacancy falling below 5 percent for these complexes.

Housing affordability is also shifting demand back to apartments, the firm said.