December 2009

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The San Antonio multifamily sector experienced negative absorption during December, leaving annual absorption totals essentially flat. Overall market occupancy has declined, on both a month-to-month and year-to-year basis, though San Antonio has fared much better than the other major metro areas in Texas. Rental rates per unit have experienced a healthy increase over the month, and especially over the last twelve months, a trend likely to continue into January. With almost 2,700 units still under construction, it’s likely that rental rates will continue to climb upward as absorption continues to be positive.

San Antonio apartment market occupancy decreased 0.50 points over the month and is down 1.01 points over the previous year to 88.57%.  Rental rates per square foot increased $0.001 in December to $0.862 psf and are up $0.006 over last year’s level.  At $700.08, rent per unit reported a monthly increase of $2.26 and is up $7.45 over the year.  Absorption in December was negative 334 units; annual absorption totals positive 62 units.

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