San Antonio Multifamily Market
Homeownership Barriers Funnel New
Residents to Rentals, Justifying Supply Gains
Vacancy climb begins to moderate from recent surge. Last year noted a significant readjustment in availability as negative net absorption reached a multi-decade high. In 2023, however, the metro’s occupied unit count will begin to increase, as a rapidly growing populace and barriers to homeownership backstop multifamily demand. This year alone, the metro will welcome over 20,700 new residents as in-migration accounts for nearly two-thirds of population growth, the second-highest count in Texas. Class A/B properties may see benefits from employment growth and spillover housing demand from a challenging single-family home market. By the end of February 2023, office-using roles accounted for nearly 25 percent of the local employment base. Expected hiring in this sector could boost the median household income as high-skill segments, such as the growing cybersecurity presence, are likely to weather a potential downturn. These long-term positive factors support a bright outlook in San Antonio.