San Antonio multifamily projection: vacancy down, investment up

​SAN ANTONIO – ​​​​​A recent market report from Marcus & Millichap says local apartment vacancy rates will likely tighten this year while buyer interest will intensify.

"Healthy demand for apartments and a dip in completions support a ten-basis-point decrease in the vacancy rate to 5.8 percent this year, a moderation from the 20-basis-point fall in 2016," the report said.

"The completion of thousands of Class A luxury units in the metro over the past few years will draw significant interest from REITs and institutional funds. As these assets are stabilized, transactions will rise.​"

Other 2017 projections:

• The creation of 19,000 jobs during 2017 will expand headcounts 1.9 percent. Last year, employers increased staffing 2.2 percent with the addition of 21,500 positions.
• Builders will add 4,200 apartments to stock during 2017, representing a decrease from​​ the nearly 7,300 units completed last year.
• The average effective rent will climb during 2017 to $975 per month, slightly exceeding last year’s gain.