Renters have a slight edge when it comes to price in San Antonio’s apartment market today, but it’s an advantage that might not last.
Rents have dipped in many cities across the country, including Texas. Austin’s rates are down 4.5% since last year, he added. But the tide could be turning. While construction is ongoing, groundbreakings have slowed. While last week’s decision by the Federal Reserve to lower interest rates could help spur new development, it takes at least two years from groundbreaking to complete a typical multifamily complex.
“San Antonio is one of the most luxury-oriented apartment markets in the state of Texas,” Khalil said. Lynd also leases apartments at reduced rates to fitness trainers and instructors in exchange for providing on-site sessions that bring residents into the gyms and workout studios. The West Loop 1604 complex follows another similar Lynd project, Culebra Commons, which Tiritilli called a “tremendous success,” with well over the targeted 90% of the units leased.
Since then, high construction costs have contributed to steadily rising rents, Tiritilli said. But there are other pressures. Both Lynd properties will offer about half of the units as affordable housing, for those making less than 60% to 80% of the area median income.After kicking off new projects across the country every quarter for the last few years, Lynd hasn’t started any new developments this year due to higher interest rates, Tiritilli said. “It gets overbuilt everybody’s got to stop,” he said.