|Marcus & Millichap: San Antonio multifamily 3Q 2015||Marcus & Millichap: San Antonio multifamily 3Q 2015||https://www.recenter.tamu.edu/news/newstalk-texas/?Item=3||2015-08-25T05:00:00Z||2015-08-25T05:00:00Z|
SAN ANTONIO - Employment is up, construction is up, vacancy is down and rents are up — all of the arrows indicating the health of San Antonio's multifamily market are pointing in the right direction.
Bolstered by the diverse economy and job growth across a variety of fields, widespread demand for multifamily units in the city will continue to rise through the third quarter of this year, according to Marcus & Millichap's Apartment Research Market Report.
With most of the corporate interest focused in the far north central and northwest submarkets, it only makes sense that a majority of new apartment construction will come up in those areas as well.
The report states that investors are scouring the San Antonio market for apartment assets, and transaction velocity will be limited only by the number of available properties for sale this year.
More construction projects are beginning in the southern market, such as Southtown Flats, Big Tex, the next phase of residential development at the Blue Star Arts Complex, as well as a handful of smaller townhome developments.
By the numbers:
- Employment in the city increased 2.2 percent, with the creation of 20,700 jobs. Last year, that growth settled at 3.3 percent with the addition of 31,100 jobs.
- Construction in San Antonio continues to rise, with 6,500 new units added this year alone. That will result in a 3.8 percent expansion to the multifamily inventory. Last year, 6,300 units were delivered.
- Vacancy in 2015 has so far fallen to 6.5 percent, an 80-basis-point drop on net absorption of 5,000 units. Last year, vacancy rose to 10 percent.
- Average effective rents are expected to increase by 3 percent this year to $884 per month. In 2014, rents jumped 4.6 percent year over year.
Click to see the full M&M San Antonio 3Q 2015 Apartment Market Report (PDF).
|San Antonio Business Journal||San Antonio-New Braunfels||Multifamily|| http://www.bizjournals.com/sanantonio/news/2015/08/18/employment-and-economic-growth-will-continue-to.html|