Housing Report

San Antonio 2-bedroom rents fall as COVID-19 impacts housing market

One-bedroom apartment rents are up, while two-bedroom prices are down.

Photo courtesy of Abodo

The impact of COVID-19 has not been lost on Texas' major housing markets, but its effects have varied from market to market.

Apartment listing site Abodo reports that in June, median Austin rents for one- and two-bedroom units fell 0.31 and 0.70 percent, respectively. In Houston, one-bedroom median rent prices gained 0.51 percent, while two-bedroom rents rose a significant 1.24 percent. Dallas rents were also up, with one-bedrooms rising 1.28 percent and two-bedroom rates gaining 0.83 percent.

In San Antonio, the rental picture is mixed at best. In June, one-bedroom apartment units went up a tiny 0.21 percent to a still-affordable $967. Two-bedroom units, however, fell precipitously — 1.36 percent — to a median $1,229.

These stats point to a dead stop in the San Antonio apartment market, Abodo says, reinforcing a flat trend that has been seen since January. Here's what's contributing to the trend.

Evictions banned
In May, the City of San Antonio issued a statement reiterating that “the federal government has implemented a 120-day moratorium on evictions for any residential property that receives federal housing funds, including both public housing and mixed-income housing beginning March 27, 2020, and ending on July 24, 2020.” The moratorium on evictions, in addition to economic stimulus checks, have contributed to flattening new apartment rental demand.

Social distancing
This spring, landlords saw less traffic amid social distancing and stay-home orders. With Texas now seeing a significant spike in COVID-19 cases, many apartment renting prospects have decided to once again put off excursions into the rental world.

Virtual hurdles
Many San Antonio property owners are now playing catchup as they try to figure out how to implement virtual apartment tours in a hurry. This may cause a lag in new rentals, as prospective tenants will likely choose checking out apartments from their couch instead of physical visits right now. And tenants who must view their new digs in person before moving in may choose to hold on signing a lease for now, Abodo says.

Other housing market trends
As CultureMap previously reported, the San Antonio housing market saw a significant 20 percent drop in home sales in May 2020 compared to the previous year.

The simple fact is that homeowners do not want big groups of people in their homes. To keep this from happening, many San Antonio homeowners that planned on selling this spring have simply removed their homes from the market. Others that were ready to sell have had second thoughts about listing them. Therefore, with less inventory, there will be fewer sales.

On the other hand, interest rates have been slashed. Qualified buyers can get a 15-year home loan for less than 3 percent, a near record-low figure. In good times, rates like this would cause a surge in home purchases, but right now, these bargains are likely just offsetting a greater downward trend for the San Antonio housing market.

What's next
COVID-19 has dampened both the San Antonio rental and housing markets, and we don't expect to see an uptick soon. Even when COVID-19 is behind us, there will be a lot of puzzle pieces to pick up for the local housing market, so Abodo expects dreary conditions to prevail.

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Take A Walk

New multifamily community opens near Stone Oak restaurants and shopping

Rendering courtesy of Greyson Luxury Living

The new community offers 291 units.

A new multifamily community is now open to prospective residents in San Antonio. Greyson Luxury Living comprises 291 units at 1734 N. Loop 1604 West, with a focus on lifestyle amenities. But the location will be the main draw for many.

Apartment floor plans range from one to three bedrooms, starting at $1,317 for one bedroom and one bathroom, and working up to a base price of $2,611 for three bedrooms and two baths. The community's pet policy according to the website is: "We welcome all your furry friends at Greyson."

Residents will get reserved parking and a garage with EV charging stations, but it might not always be necessary to hop in the car. The apartments are directly adjacent to restaurants like Cover 3, Eddie V's Prime Seafood, and Blü Prime Steakhouse — not exactly everyday eats, but there's tons more at the Vineyard Shopping Center and the Stone Oak neighborhood's Blanco Market Shopping Center across the highway.

In addition to restaurants, the community is less than a five-minute drive from H-E-B Plus, Whole Foods Market, Target, fashion and furniture stores, and multiple fitness studios like StretchLab and LA Fitness.

A press release promises wood-style flooring, quartz and granite countertops, and ceramic tile backsplash. On the more utilitarian side, it offers single-basin sinks, kitchen islands, "spacious" pantries, a stainless-steel Energy Star appliance package, and washer and dryer connections. (Images shared by the complex so far appear to be more illustrative of the desired vibe than the actual space.)

Every floor plan also shows a private patio or balcony. The most expensive floor plan — the three-by-two — has a wraparound outdoor space.

For shared spaces, a resort-style pool with a tanning shelf (a very shallow area for placing lounge chairs) and bike storage encourage residents to get outside, and a dog wash station makes it easy to leave dirt and hair outside of apartments. There's also a fitness center, a clubhouse with wi-fi, elevators, and concierge services.

“We developed Greyson as a luxury multifamily community aimed to fit any type of lifestyle, and we are grateful for all of our partners that helped bring this project to life,” says Ed Garahan, partner and CEO at Carbon Companies, the development firm heading the project.

Carbon Companies also sold the Addison Medical Center Apartments, Ventura Ridge, Triomphe Apartments, and Pecan Springs Luxury Apartment Homes, with more in the works in San Antonio.

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