San Antonio apartment market elevated

​​​SAN ANTONIO – ​In its fourth quarter 2017 multifamily market report, Marcus & Millichap says "builders are not shying away from the San Antonio metro but are shifting to different submarkets."

About 1,700 apartments have been delivered on the city’s southwest side since 2012. ​However, a number of new projects are underway in the sub​market, and more than 2,000 units are slated for completion through early 2019.

While vacancy in the area rose 300 basis points over the last 12 months, fewer than 1,000 apartments were vacant at the end of the third quarter. An increased pace of completions here over the next few quarters will likely keep vacancy elevated as these new units are leased, the report said.

Marcus & Millichap projects that 8,800 units will be completed locally by the end of this year, and vacancy will increase 7 percent.​ The firm expects effective rents to increase 4.5 percent.​