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Apartment occupancy rose slightly in June as fewer than 350 total apartments were absorbed, 66% fewer than during June 2018.

June’s occupancy rate rose 10 basis points to 91.1%, according to the latest monthly report by ApartmentData.com, despite month-to-month and year-over-year declines in the number of apartments absorbed — 342 in June compared with 842 in May and 1,007 in June 2018. Last June’s high number may have been the exception, considering that June 2017 saw 182 units absorbed and a occupancy rate of 90%.

One new apartment complex and 382 units were added last month to San Antonio’s supply, which now sits at 906 communities and 192,325 units. Twenty communities totaling 4,877 units have opened in the last year. In the 12 months ending June 2018, the number of recently opened apartment complexes was 28, with 6,527 total units. As of today, there are 25 communities under construction, totaling 6,586 units, while 38 apartment complexes have been proposed, totaling 10,424 units.

Along with positive trends in occupancy, average rents also continue to rise. June’s average rent rose $5 from May to $970 per month, or $1.14 per square foot, while average unit size remained 851 square feet. In the last 12 months, rental rates have risen 3.3% while 6,006 units have been absorbed.

As in May, the hottest submarkets in San Antonio in June continued to be New Braunfels and Seguin as well as Balcones Heights. New to the list in June was the downtown, Southtown and Brackenridge submarket.

As occupancy continues to tighten, total apartment concessions given continue to fall. June saw just 39% of total units offer concessions, or some 75,297 units. Class A properties continue to have the highest portion of these concessions with 47%, while Class B and C apartments had 41% and 40% concessions, respectively.

Though Dallas-Fort Worth and San Antonio were the only major Texas metros to experience increases in apartment occupancy, rental rates in all four major markets continue to rise. Rent is still highest in Austin at $1,290 per month on average, or $1.48 per square foot. Austin was also the only major metro in June to see its apartment occupancy decline, falling 10 basis points to 91.8%.

Publication: San Antonio Business Journal

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