San Antonio Multifamily Market Report
Interstate 35 Corridor Growing Expeditiously, Boosting Apartment Performance in Suburbs
Northeast neighborhoods boast tightest vacancy. Remote work during the pandemic prompted many to relocate to the suburbs, a trend that continues even as some firms begin to bring workers back into the office. Household formation is particularly strong in the New Braunfels-Schertz-Universal City submarket, spanning the I-35 corridor between the rapidly expanding cities of Austin and San Antonio. Vacancy in the submarket fell 210 basis points year over year to 3.9 percent in June, the tightest availability in the metro. Rising home prices and limited for-sale inventory are bolstering demand for upper-tier apartments in the submarket. Class A vacancy dropped 290 basis points and Class B availability eased 200 basis points to 3.6 percent and 3.7 percent, respectively. Heightened competition is on the horizon, though. The 1,900-acre Mayfair project will create 6,000 housing units in New Braunfels over the next 15 years, with the first houses finalizing in 2023.