San Antonio Multifamily Sector Shows Persistent Strength

The Alamo City has long been a stronghold of demand for residential construction, buoyed by favorable domestic migration trends and demographic tailwinds. Even as multifamily construction slowed over the past year and a half, absorption accelerated. About 3,000 more units were leased than vacated in the third quarter, and that already-high figure was even higher over the summer months. This positive absorption has driven vacancies to record lows, as millennials branch off and form their own households. Additionally, new arrivals from other parts of the country are bolstering this surge in demand across the city.