San Antonio Q2 2026 Market Report

Key Takeaways

• Trailing 12-month absorption of 3,497 units continues to lag 6,284 units delivered, though Q2’s 1,747 units absorbed—nearly triple Q1’s 673 units—signals strengthening demand momentum as the supply cycle matures.
• The construction pipeline is contracting rapidly, with trailing 12-month starts declining to 2,901 units and just 3,768 units under construction (1.6% of inventory), positioning the market for meaningfully lower deliveries through 2027.
• Effective rents declined 5.4% year-over-year to $1,157 per unit while stabilized occupancy of 86.0% reflects a 210 basis point annual decline, though sequential occupancy held flat for the first time in over a year.

Market Outlook

San Antonio is in the late stages of a protracted supply cycle that has driven occupancy to the lowest level among tracked peer markets and pushed rents down 5.4% year over year…