October 2009

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Following several months of increasing occupancy in the San Antonio multi-family sector, October saw a reverse of course with just over a half percentage point decline. Average rental rates continued their steady climb during the month; however, Class A rents per unit came down by $0.50 during October and $1.41 over the previous two months. As with the other major Texas metropolitan markets, concessions continue to dominate the market as newly delivered properties strive to achieve lease-up, while existing properties try to stay competitive.

San Antonio apartment market occupancy decreased 0.28 points over the month and is down 1.47 points over the previous year to 88.98%. Rental rates per square foot increased $0.001 in October to $0.863 psf, and are up $0.008 over last year’s level. At $699.13, rent per unit reported a monthly increase of $0.69, and is up $7.29 over the year. Absorption in October was -90 units; annual absorption totals -564 units.

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