San Antonio Apartment Surplus Spawns Generous Concessions

San Antonio Apartment Surplus Spawns Generous Concessions
News| April 18, 2025| Mike Boyd
Texas + Apartment Buildings

San Antonio apartment owners are brawling with a glut of units. When that happens, concessions are not far behind. According to MRI ApartmentData, San Antonio delivered 14,500 units in the past year, only absorbing 7,630. That means, besides lower rents, concessions are de rigueur.

MRI’s latest survey shows occupancy in San Antonio was 86.3%. The San Antonio Business Journal reports that while that rate is at its highest since March 2024, it’s still well below the 90% threshold needed to balance the market between renters and landlords.

In fact, the city hasn’t seen occupancy rates above 90% since September 2022. That has forced 72% of Class A apartments — typically newly built, highly amenitized properties in desirable neighborhoods — to offer an average 10.2% rental discount, equivalent to more than one month’s rent.

Occupancy woes have also led to a 3.1% decline in rental rates over the past year, which MRI’s data shows typically coincide with increases in occupancy.

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