September 2009

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Demand in the San Antonio multi-family sector improved further in September as the major metrics continue to improve.  The sector posted its fifth straight month of positive absorption with the under-construction pipeline diminishing steadily.  Occupancy also rose at a stable pace for the fifth consecutive month, particularly with Class A properties gaining a 0.66% percentage point increase, ending September at 91.36%.  However, while average rents per unit and per square foot increased for the overall market, Class A properties faced declines in their average rates for the first time in six months ending $932.42 and $1.022, respectively.

San Antonio apartment market occupancy increased 0.28 points over the month, but is down 1.82 points over the previous year to 89.26%.  Rental rates per square foot increased $0.001 in September to $0.862 psf, and are up $0.007 over last year’s level.  At $698.44, rent per unit reported a monthly increase of $0.17, and is up $7.29 over the year.  Absorption in September was 385 units; annual absorption totals -1,195 units.

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