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Apartment occupancy appears to have finally started catching up with new deliveries in San Antonio, as May’s occupancy rate reached nearly its highest mark in years, according to ApartmentData.com.

Last month’s apartment occupancy reached 91%, the highest rate seen in the market since at least 2016. For reference, the report only compiles data for apartments with 75 or more units. Though ApartmentData.com said it can’t identify the last month in which occupancy was this high in San Antonio, a report on yearly averages going back to 2007 found that 2016 had the highest average occupancy at 90.9%. This news comes a month after ApartmentData.com reported that April’s occupancy rate in San Antonio had hit its highest point in three years. May saw a 40 basis point rise in occupancy from April, which saw a 40 basis point rise from March. For context of how drastically things have changed for the local apartment market, occupancy has risen 1.2%, or 120 basis points, year over year.

“The real story here is that occupancy of stabilized properties is probably closer to 92%, but when you throw in the lease ups, it brings it down to 91%. San Antonio is experiencing the highest occupancy trend in a decade, and absorption is keeping up with supply. I would tie that to job growth,” wrote Cindi Reed, ApartmentData.com’s Southwest regional manager, in an email.

Publication: Houston Business Journal

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