San Antonio Multifamily Key Findings

• Rent growth and occupancy both increased quarter-over-quarter for the first time since 2022 in San Antonio’s multifamily market.
• Absorption numbers remain strong amidst job growth as San Antonio continues to lead the nation in domestic migration.
• Sales velocity remains lower than post-COVID-19 highs as forced sales and debt maturities motivate sellers.
• San Antonio’s largest wave of multifamily development continues, despite a slowdown in deliveries.

 

Demographics

San Antonio recorded consistent population growth in recent years, due to its vast employment opportunities in the healthcare, defense, and finance sectors. This led to the metro recording an unemployment rate below the national average. Healthcare workers may also find themselves attracted to the metro for the South Texas Medical Center, which is one of the largest healthcare hubs in the state.

 

Construction Activity

About 11,000 units were added to San Antonio throughout the past 12 months, with 5,600 remaining under construction. Areas that noted the most new activity include Midtown, Downtown, Far West San Antonio, and Comal County, with the majority of the metro’s Class A supply being added in these areas. However, nearby areas like New Braunfels and Alamo Ranch are making moves with new build-to-rent additions. These properties will continue to attract residents, given the metro’s affordability.

 

Sales Activity

The market saw three multifamily sales of 25 units or more in Q1 2025, a decline from the quarterly average of 10.5 in 2024, keeping the same parameters intact. The smaller multifamily space, 6-25 units, featured higher velocity with nine transactions. These figures account for market rate sales, exclude HFC/PFC conversions, foreclosures, and count portfolio sales as one.

 

While bid-ask spreads have generally narrowed between buyers and sellers, elevated interest rates have expanded market cap rates, particularly in the class C space.