SAN ANTONIO, May 27, 2008 — Healthy demographic and economic conditions in San Antonio will benefit the area’s apartment market this year, and employment gains will generate sufficient demand to largely offset the impact of elevated deliveries, according to a first-quarter Apartment Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm. The traditionally low-paying jobs in the leisure and hospitality sector in particular, which is poised for significant expansion this year, will bolster demand for apartment space, despite a relatively affordable housing market.
“Solid fundamentals and economic expansion, as well as cap rates that offer a yield premium over competing metros, will continue to attract buyers to San Antonio,” says Michael Watson, regional manager of the San Antonio office of Marcus & Millichap.
Following are some of the most significant aspects of the San Antonio Apartment Research Report:
For the second straight year, employers are set to add approximately 16,000 jobs to the metro, a 1.9 percent increase, one of the strongest growth rates in the nation.
Approximately 3,400 units are slated to come online this year.
Vacancy is forecast to end the year at 7.3 percent.
Asking rents will rise 2.9 percent to $704 this year.
Effective rents will gain 2.1 percent to $659 per month.
For a copy of the complete San Antonio Apartment Research Report, as well as reports on other markets nationwide, visit our website at www.MarcusMillichap.com.
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