San Antonio’s apartment occupancy in July made its biggest month-to-month jump of the year, rising 60 basis points to end the month near 92%.
Occupancy in July was 91.7%, up from 91.1% in June, according to the latest report by ApartmentData.com. Apartment occupancy has been near an all-time high for the last three months and continues to increase. The average monthly rent for an apartment increased by $8 in July, ending the month at $978 per month. The average rental rate now is now $1.15 per square foot.
Absorption continued at a healthy rate, totaling 835 units in July, up slightly from last month and on par with July 2018. The number is also nearly double that of July 2017, which saw only 425 units absorbed. July was also the sixth month in a row with more than 600 units absorbed. Last year saw six consecutive months — from March to September — with more than 600 units absorbed.
San Antonio’s hottest submarkets haven’t changed much, with New Braunfels, Seguin, downtown and Southtown seeing much of the absorption. The Medical Center and the area around Port San Antonio have also been hot over the last three months.
One new apartment complex came online in July, increasing San Antonio’s operating supply to 907 communities, or 192,711 units. Rent growth has risen to 3.8% over the last year, with 6,391 units absorbed over the same period. Sixteen new apartment complexes have opened since last July, totaling 4,121 units.
One new community broke ground in July, bringing the number of complexes under construction in San Antonio to 26 representing 6,909 units. Thirty-eight complexes remain proposed, totaling 10,424 units.
Apartment concessions continue to fall in the hot market, dropping by 2 percentage points from June, with about 4,000 apartment units offering some kind of concessions. Class A units continue to see the highest percentage of concessions given, at 42% of total stock, or 22,502 units, while 40% of Class B units, or 24,909 units, are being offered with concessions. Class C unit concessions fell by 3 percentage points month over month, while Class D concessions increased by a percentage point.
Publication: San Antonio Business Journal