The metro area added 10,000 new positions last year, which translates to a 1.2 percent increase in employment. Most of the demand that originated from that growth is focused on multifamily properties, according to Hendricks & Partners. Rents have increased about 3.4 percent, while 2011 saw absorption of new units surge higher.
This year, some of the growth is expected to slow as the market achieves a more stable condition. The market may see a slight increase in vacancy rates from 4.3 to 4.6 percent in 2013 as some renters become homeowners and new construction outpaces demand. The effects will be limited, however, as some additional job growth, particularly in the energy sector, boosts the renter population.
The immediate future is relatively bright for the apartment sector in San Antonio, the firm projects. Rental managers and owners should find their businesses profitable even as growth slows, and further rent growth is a possibility.