Why Isn’t San Antonio’s Rent Growth Higher?
Digested from “San Antonio Lags: Apartment Metrics Belie Job Gains”
Axiometrics Blog (3/18/15) Gore, Sophie Zatterstrom
Over the past few years, multifamily construction and rent growth has been strong in Texas, with Houston, Dallas, Austin and, most recently, Fort Worth leading the way. However, the multifamily market in San Antonio has not been as robust.
Coming out of the recession, San Antonio didn’t experience the same rent growth as Houston, Dallas or Austin. From 2010-2014, San Antonio’s average effective rent growth was 2.9 percent, according to Axiometrics market research data. Over the same period, rents increased by 5.6 percent in Austin and by 4.6 percent in both Dallas and Houston.
One reason for this, according to Axiometrics blogger Sophie Zatterstrom Gore, is San Antonio’s market for single-family homes: Low home prices and high home-ownership rates — almost 70 percent in 2014 — have kept rent growth lower than the other major markets in Texas.