San Antonio Multifamily Market Report

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, absorption will trend positive as the metro’s 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 64 percent of population growth — the second-highest count in Texas. Class A/B properties may also see benefits from employment growth. 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 metro household income. High-skill segments of the sector, such as San Antonio’s growing cybersecurity presence, are also likely to weather any potential downturn. These long-term positive factors will likely ease the erratic vacancy changes noted in the past year.