**San Antonio Apartment Surplus Spurs Generous Concessions**
San Antonio’s apartment market is grappling with a significant oversupply of units, prompting landlords to offer generous concessions in an attempt to attract tenants.
According to data from MRI ApartmentData, the city added 14,500 new apartment units over the past year but managed to absorb only 7,630 of them. The imbalance between supply and demand has led to a surplus that is driving down rental prices and encouraging incentives to renters.
MRI’s latest report indicates that the average occupancy rate in San Antonio stands at 86.3%. While this marks an improvement from previous months and represents the highest rate since March 2024, it still falls short of the 90% benchmark generally considered necessary for a balanced rental market.
San Antonio hasn’t seen occupancy exceed 90% since September 2022. In response to the ongoing challenges, 72% of Class A apartment communities — typically newer developments offering upscale amenities — are now providing rental concessions averaging 10.2%, which equates to more than one month’s rent in discounts.
Additionally, average rental rates in the city have dropped by 3.1% over the past year. Historically, declining rents correlate with rising occupancy rates, but the current market shows that the excess supply is continuing to suppress rent growth.
With leasing incentives becoming increasingly common, renters may find themselves in a strong negotiating position in the current San Antonio apartment market.
