Welcome, San Antonio Growth! Enough said!
Multifamily property remains the most favored property type, with 86% of investors surveyed intending to increase exposure in the next three to five years plan. San Antonio’s multifamily sales volume during 3Q21 totaled $288.8M, representing a 92.3% year-over-year increase (According to CoStar, San Antonio Business Journal).
Sunbelt markets continue to drive the highest demand and garner the most attention from multifamily investors and developers, and San Antonio is no exception. Year-to-date, approximately 3,800 new units have been added and over 10,250 units have been absorbed (According to CoStar, San Antonio Business Journal).
San Antonio is among the most desirable markets for both investors and renters due to its reliable economic growth trajectory. San Antonio is located in the heart of the state, giving easy access to other major metropolises. It is prominent for numerous reasons. It’s abode to the most enigmatic piece of Texas history, the Alamo, with its rich and diverse culture. San Antonio is so different that each neighborhood and exurb throughout the metroplex has its unique vibe.
San Antonio has long been home to several tech titans. Just last year, Oracle announced a move from Redwood City, California, to Austin, Texas. And now, Tesla is just out to follow in its footsteps. Tesla will move their headquarters to Austin, Sister City to San Antonio, Texas. There is formerly a Tesla Giga factory in Austin, and now the company’s headquarters will be too.
In a market like Austin, it is easier to get more physical space. That means companies like Tesla who set up shop there can bank up hiring and stretch their campuses to incite further innovation.
Moreover, effective rental rates continued to reach new spheres throughout San Antonio, increasing 4% during the third quarter. San Antonio’s 13% year-to-date rent growth is an outcome of strong economic fundamentals as the San Antonio market reached pre-pandemic levels before the end of 2020. In fact, the cost of living in San Antonio is 11% lower than in Austin’s. That lower cost of living comes with even as many amenities as you would possibly get in Austin. From the River Walk to the megacity’s reputation for succulent food, San Antonio features a distinctive air that’ll make you proud to call it home. On top of all of that, San Antonio’s job growth is on the rise and it is prognosticated to continually grow.
Since Tesla isn’t the first big company to move out its headquarters from California, and it probably won’t be the last, this news should serve as a wake-up call for real estate investors.
Meanwhile, the fact that San Antonio is turning up as new tech and invention mecca is pleasing news for our investors there. The additional companies that move, the more residential investors can benefit via an uptick in rental demand. Property values could also rise, though the likelihood of them reaching Bay Area levels is slim — and that’s a decent thing.
Also, while the San Antonio housing market is in excellent shape, it may still be a good time for fresh investors to hedge their way into the multifamily investment. As more companies branch out there, the demand for housing will continue to grow, so there’s a great deal of opportunity for those looking to break in now.
Exciting Opportunity as we are in contract in a Multifamily Investment Deal “Viva Max” located in San Antonio, Texas. This deal has all the right elements to make it a truly investor-friendly opportunity.
Click the button below 👇🏻 to find out the nitty-gritty finer details about the property.
San Antonio has so much to offer. No matter where you select to maneuver, you can’t go wrong when you’re investing in San Antonio!