The month of March saw eight new apartment complexes completed in San Antonio, leading to a drop in occupancy rates and an increase in average price per unit.
Occupancy rates fell for a third month in a row in San Antonio, according to the latest ApartmentData.com market line report, as new apartments continue to open throughout the market. March ended with an overall occupancy rate of 89.1 percent, down from February’s 89.3 percent.
Meanwhile, prices increased in March, ending the month at an average price per unit of $920, up from February’s average of $913. The increase came as those eight new complexes were completed, setting the operating supply in San Antonio at 881 communities. The average size of each unit also increased slightly to 850 square feet, up from 849 square feet in February.
While San Antonio is still by far the cheapest major market in Texas, it now has the lowest occupancy rate among the state’s four largest markets, right below Houston, which had an occupancy rate of 89.7 percent in March. San Antonio was also the only large market in Texas to decline in occupancy, as Houston rose by 20 percentage points and Dallas-Fort Worth and Austin remained steady at 91.2 percent and 90 percent occupancy, respectively.
With the new deliveries in March, the number of apartment complexes under construction fell to 25, representing 6,459 units. No new communities were proposed. While prices rose in March, concessions declined by nearly 4,000 units throughout San Antonio, finishing the month at 82,206 units with concessions, or 44 percent of all units in San Antonio. While the decline was seen in Class B and C product, Class A and Class D apartments both saw increases in concessions. Currently, 54 percent of all Class A product is available with concessions.
San Antonio’s Far West and Northwest submarkets have been experiencing the most new apartment construction, as well as the most rent growth recently. Rents in the area around the Medical Center and USAA have increased by 7.2 percent over the last three months. The submarkets around Sea World, Brooks and the University of Texas at San Antonio have seen rents increase by 6.3, 5.1 and 4.5 percent, respectively, over the last three months.