June 2010

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June proved to be a generally enjoyable month for the San Antonio area multifamily sector, with key metrics posting positive figures. Overall vacancy came in just under 10% for the first time since November 2008. Absorption continued its positive trend for the fifth successive month and increased by more than 475 units over last month. Average rental rates returned to positive postings overall this month, with Class A properties recording the highest increase ($1.53) in average rents per unit. Average rents per square foot showed a uniform increase of $0.001 for classes A and D and remained unchanged for the remaining classes. With over 54% of the construction pipeline currently pre-leasing and only 400 units expected to deliver during July, the market seems poised to return to stable metrics in the coming months.

San Antonio apartment market occupancy increased 0.23 points in June to 90.12%, and is up 1.48 points over the previous year. Rental rates per square foot increased $0.001 over the month to $0.861 per square foot. Over the year, per square foot averages are up $0.003. At $699.25, rental rates per unit posted a monthly increase of $0.66 and are up $4.15 over the previous year. Absorption in June was positive 522 units, while annual absorption totals positive 3,536 units.

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