The San Antonio Apartment Association released its state-of-the-industry report on the city’s booming apartment rental market last week, which shows tenants could see lower rent increases over the course of the year to come.
While the overall average rent for apartments climbed more than 18% last year, a more modest growth of 6% is expected in 2022, according to statistics from appartementdata.com which were presented virtually to members of the industry.
The average apartment rent in San Antonio was $1,140 in December 2021, compared to $988 in the same month of 2020, or $152 more.
What has driven rental rates up is high demand and low availability. The city’s apartment occupancy rate started the year around 93%.
San Antonio Apartment Association board member Tony Sousa said future real estate development can be difficult to predict from year to year.
About 8,000 new apartments could be built in complexes across the city in 2022 according to apartmentdata.com, of which 7,000 are likely already absorbed. Apartments in the city center and near the city center are among the most popular for rent, but Sousa said the hot streak is also difficult to predict.
“Is Urban going to continue to be so popular? Hard to know in the next five to ten years, but it’s definitely popular now and the Pearl and Silver Ventures have done a terrific job of growing the popularity of downtown. city or downtown area,” Sousa said.
He said local industry members regularly discuss local rental rates.
“There are certainly discussions among all groups, from on-site management and staff to owners and developers about what is reasonable,” Sousa said.
San Antonio’s monthly rental rate this month is $1,140, the lowest rental rate among the four major Texas metros. The price listed for each city is based on the price of 857 to 888 square feet.
Austin had the highest rent this month at $1,540, followed by Dallas-Fort Worth at $1,385 and Houston at $1,184. About 95% of apartments were full in the Metroplex and about 92% were occupied in Austin and Houston.