Over the last five years, the San Antonio-New Braunfels region has experienced dramatic shifts in rent growth, ranging from a 1.0% decline to a 16.1% upswing. As the second quarter drew to a close, rents for new leases rose by a modest 0.4%, trailing behind the market’s five-year average annual increase of 4.9%. Amid the influx of new apartment stock, rent growth for Class A units stagnated, recording a zero percent change year-over-year, as operators prioritize maintain occupancy in the current climate. In contrast, the more budget-friendly Class C sector demonstrated a 3.0% increase, marking the third quarter in a row this segment has outperformed its Class A and B counterparts.
Examining San Antonio’s submarkets, Northeast and West San Antonio led the pack in rent change over the past year, recording increases of 3.5% and 3.0%, respectively. In stark contrast, the Far Northwest submarket experienced a rent contraction of 2.9% in the second quarter.