After apartment occupancies have steadily fallen nearly every month since September, the warm weather has brought out renters.
For the first time in six months, apartment occupancy was on the rise in San Antonio, moving up 50 basis points to end April with 89.6 percent occupancy, according to the latest ApartmentData.com report. The average price of an apartment also increased for the third month in a row, ending April at $923 per month, up from March’s $920 per month.
Just one new apartment complex came on board in April and the average size of an apartment fell by one square foot to 849 square feet. While rental rate growth since last April has only increased by 0.7 percent, 4,893 units have been absorbed since April 2017.
April ended with 24 multifamily communities still under construction, representing 6,242 units, and 27 communities having been proposed, representing 7,875 units. That is unchanged since last month. In the last 12 months, 31 communities have opened, accounting for 7,747 total new units on the market.
While San Antonio’s apartment occupancy still sits below 90 percent, management companies may be feeling bullish for this season’s new crop of summer renters, as concessions across the board fell in April. Total concessions fell by 2 percent in San Antonio from 44 percent to 42 percent of all units offering concessions, while Class A concessions fell by 1 percent, Class B units fell by 2 percent, Class C product fell by nearly 200 units, leaving the percentage unchanged, and Class D units offering concessions fell a whopping 8 percent.
The other three major metros in Texas saw similar occupancy results for April, as every market witnessed an increase in occupancy and a rise in average price per month. While Houston leads all major Texas markets in rental rate growth over the past year, 5.3 percent of 14,699 units absorbed, Austin remains the only major market with a negative absorption rate, negative 1.1 percent, with 7,957 units absorbed.