With thousands of new apartment units becoming available in San Antonio, occupancy rates at apartment complexes continue to drop.
As people move out of apartments, realty experts say companies are having to come up with cost-effective solutions to bring them back in.
“You just could not get into an apartment, so they went ahead and they tried to correct it by just putting up a ton of units and because of that influx, it kind of saturated the market,” said Spencer Skubik, Associate Broker with Becker Properties.
Skubik said after COVID-19, there was a huge need for more apartments.
Fast forward to the end of 2023, and according to the San Antonio Apartment Association, only 87% of apartment units were taken, the lowest use in over a decade.
That number is just expected to keep dropping. By the end of 2024, the San Antonio Apartment Association estimates only 84% of apartments will be in use.
“I mean I’m just looking into them. I’m 21, I kind of want to move out but then I see the prices and it’s kind of like, I don’t think I can afford it, you know?” said Bianca Pedroza who is considering moving.
Pedroza said apartment prices are just too high, right now. If those rates were lower, Pedroza said she could afford a nicer complex.
“You get what you pay for. The prices that are high are whatever they come with. I know some have like pools and courts, and they’re really nice apartments and then the low ones are like really bad,” said Pedroza.
The good news is the San Antonio Apartment Association estimates 17,000 new units will be put on the market in 2024 and that could mean lower prices.
The association sent us a statement that reads in part:
“While occupancy levels at properties are impacted by a variety of factors, including the area’s business environment, generally we see that when jurisdictions prioritize housing, renters have greater choice and affordability.”
Skubik said as more people move out of apartment complexes, companies will have to come up with creative ways to draw them back in.
“We have noticed that there have been some pretty good incentives, but that sticker shock is still scaring a lot of people out of it. So they’re going to have to find something to kind of entice these buyers back to the apartment,” said Skubik.
