San Antonio multifamily market sees gains

SAN ANTONIO – Apartment construction in the San Antonio area continues to gain steam, but occupancy rates remain steady. So far this year, nearly 4,200 apartments were added to the local market, according to data from Austin Investor Interests.

Currently, about 8,800 units under construction haven’t been added to the inventory and another 6,900 units are expected to start in the next year.

During third quarter 2013, 1,460 units were added — a 41 percent jump compared to the same period last year.

Overall, occupancy during the quarter was down from last year about half of 1 percent to 93 percent, and rental rates were up almost 3 percent to 97 cents per sf.

The city’s far West Side remains the hottest area for multifamily growth. In the area around Westover Hills, 1,032 units opened in the last 12 months, and another 1,200 are expected to be completed within the next year.

Another area seeing substantial construction is the along the Loop 1604 corridor, near I-10 and US 281. Nearly 1,300 units were added during the year and construction on another 1,700 units is expected to start in the next 12 months.

In the past year in Downtown, 359 units were added and in the next 12 months construction is set to start on another 800 apartments. Downtown boasted the highest occupancy rate in the city at 96 percent and the most expensive rents at $1.47 per sf.

During the quarter, 23 multifamily communities, totaling more than 5,800 units, changed hands. For the year, 61 properties were sold and another 65 apartment complexes are on the market.

Read more at the San Antonio Express-News.