San Antonio Apartment Demand Outstrips Supply

San Antonio Apartment Demand Outstrips Supply

New apartment construction is wreaking havoc in many markets across the US, driving rents lower and vacancy higher. San Antonio is not immune to this phenomenon, but net-net, the outlook is very promising, especially for class B properties.

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"San Antonio multi-family market retains long-term investment appeal, bolstered by a positive economic outlook, significant job growth and major industrial development." - MMG Real Estate Advisors Q42023

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Currently there are 17K units under construction and in lease up in San Antonio, but only 6.8% of those are class B units, which is our target market. Most of the supply is high-end class A, which is problematic for those asset owners. Overall, San Antonio ranks favorably at 46th for new apartment construction versus existing supply. To re-emphasize, for class B, demand will far outstrip supply. MMG is forecasting in 2025/2026 that completions will not keep up with the growing demand as employment is growing 6% per year.

Also, unlike some areas of the country facing declining rents, San Antonio continues to see rising rents. In our Sedona asset, we are still seeing rents rise 4-5% on an annualized basis.

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Despite this promising outlook, San Antonio is seeing very few transactions in multi-family, with volume down 60% year-over-year. Of those deals that closed, the average price per unit was $152K, which is up 12% YOY. The only deals happening are distressed opportunities like The Regatta, which we are currently raising capital for and plan on closing by the end of the month. We believe we are acquiring a gem (in need of TLC) for a steep discount at $100k per door. There is still time to get in on this opportunity, but the raise is nearing 85% complete. If you would like to learn more about this deal, watch our webinar or set up a call.

Schedule a call - https://creecapital.com/contact/

Cash Flow Club - https://creecashflowclub.com/?sl=lnkdnews

CREE Capital - https://creecapital.com

CREE Capital Fund - https://creefund.cashflowportal.com

Rod’s Multifamily Bootcamp - https://www.multifamilybootcamp.com/july-virtual/?sl=lnkdo


Ty Freeney [D.R.E.A.M]

VP of Marketing | SaleS ~ Free Communications, Credit Gurus USA, Extension Group,LLC | [founder] gottatrainer???circa 2007??Multimedia Media Companies

7 个月

great article

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Patricia McSwain

Real Estate Investor/So, if I could show you how to make $27,800 or more on a 240 Unit property on top of the selling price or if you own it on top of all the fees you have, would you be interested?

7 个月

Hey, do you look at ways to make money off of your bills on your properties? I would love to show you?

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Patricia McSwain

Real Estate Investor/So, if I could show you how to make $27,800 or more on a 240 Unit property on top of the selling price or if you own it on top of all the fees you have, would you be interested?

7 个月

Wow that's crazy!

回复

I wanted to let you know a little bit about our services if you are ever in need of cleaning, pressure washing, interior and exterior paint, carpet cleaning, floor installs, resealing and restriping parking lots with concrete repairs, resurface of bathrooms and kitchens as well, we also do maintenace punches and much more? www.ayopaservices.com? thank you as we appreciate you in advance. Also with any services that we provide we give 50 percent off any amenities cleans of offices.?

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CHESTER SWANSON SR.

Next Trend Realty LLC./wwwHar.com/Chester-Swanson/agent_cbswan

7 个月

Thanks for Sharing.

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