San Antonio ranked the 11th leading apartment market in the United States during the first quarter of 2015, according to a new report by MPF Research.
The local multifamily market absorbed 7,368 apartment units during the quarter as more people relocate to not just San Antonio but all the major Texas markets.
The Dallas-Fort Worth metro area ranked first with 18,023 units absorbed, followed by Houston at 15,872; Washington, D.C., at 14,336; Los Angeles at 13,292; and Austin at 12,940 units to round out the top five apartment markets.
The four Texas metropolitan markets alone accounted for 20 percent of all apartment demand nationally during the past year.
“Accelerating job creation is allowing more young adults to form new households, and almost all of the new households are opting to rent,” said MPF Research vice president Greg Willett in a news release. “At the same time, relatively few of the more-established renters are leaving apartments to make home purchases for the first time.”
Outskirts of San Antonio to reap rewards of multifamily development
Renter spending throughout San Antonio contributed nearly $3.5 million to the city’s economy in 2013, according to a study released by the National Apartment Association and the National Multifamily Housing Council.
So it appears that if you build it, they will come. And then spend a lot of money, as apartment development takes place particularly in the Far West, Far Northwest and Far North San Antonio.
But with new apartment and office construction pushed to the outskirts of the city’s limits, is San Antonio flirting with the danger of pushing a majority of its renters out of town?
“Apartment construction is heaviest in Far West San Antonio, Far Northwest San Antonio and Far North Central San Antonio, where the majority of offices are located and, therefore, where demand for apartments is highest,” said Mike Rust, 2014 President of the San Antonio Apartment Association. “The rental boom – both locally and nationally – has been fueled by demographic changes like the growing Millennial population and a rediscovery of metropolitan urban cores.”
The main issue with San Antonio, however, is that it is still in the process of establishing an urban core. Most of the development in recent years has been cities within cities. Take La Cantera, for example. A person could live, work, shop, eat, and be entertained without even hopping on a freeway, which is exactly the idea behind the master-planned communities popping up at increasing frequency.
By: James Aldridge