San Antonio’s economic landscape remains robust, supported by strong population growth and unemployment rates below national averages. The city’s diverse industry profile—anchored by sectors like healthcare and manufacturing—helps it navigate economic challenges effectively. The local economy saw unemployment hold steady at 3.6% in Q2 2024. Consistent job growth continued, with approximately 26,000 new jobs added year over year, and employment levels are expected to rise.
San Antonio has a substantial supply pipeline, and although absorption rates are influenced by the influx of new units, Q2 2024 proved exceptionally strong, exceeding performance for all of 2023 and highlighting the city’s ongoing need for rental housing amid the construction boom. Investors are increasingly hopeful for relief from supply pressures due to the anticipated reduction in new deliveries following the completion of current projects. Even with rents slightly dropping to $1.41 per square foot in the first quarter, there’s a growing belief that San Antonio is steadily recovering post-pandemic.
San Antonio had 8 property transactions totaling 1,639 units in the second quarter, consisting of more Class A properties than during the last quarter, raising the average price per unit in comparison to Q1 2024.
A more stable capital markets environment, the anticipated reduction in interest rates, the ongoing rollout of new developments, and persistent pressure on negatively leveraged owners are expected to increase transaction volume by the end of 2024.
Read more about the San Antonio multifamily market in Cushman & Wakefield’s latest Marketbeat.
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