San Antonio Multifamily Market
2024 Investment Forecast
Strong Population Inflows Help Alamo City
Weather Supply Headwinds Long-Term
Class A properties sustain low vacancy. Demand for multifamily space has stayed strong in San Antonio. Positive net absorption was noted in 22 of the last 23 years, and total occupied stock will reach a record high in 2024. The increasing metro vacancy rate noted in 2024 will largely be due to an influx of new units, moving the metric up for the third straight year. Prolonged renter demand, however, suggests conditions will tighten again long-term, particularly as multifamily starts slow. Over the next five years, the metro’s resident count is expected to expand by nearly 100,000 people, aiding multifamily demand. The Class A segment, which faces the most competition from new deliveries, had the lowest metro vacancy rate among property tiers exiting 2023, demonstrating the level of renter demand that exists for top-tier units. Still, areas like Central and Far Northwest San Antonio that expect the highest levels of construction will likely note elevated vacancy through 2024, while supply and demand realign locally. Long-term corporate investments, like JCB’s planned expansion breaking ground in 2024 that will necessitate the addition of 1,500 new personnel, should help maintain a steady level of in-migration, growing the renter pool.