San Antonio rent prices drop slightly amid COVID-19, says new report
New data shows that the pandemic has not put much of dent in Texas rental demand, but prices are stagnate.
According to apartment marketplace Abodo, Texas' median one-bedroom apartment rent fell $7 from April to June 2020, down to $1,012 from $1,019. Conversely, national one-bedroom median rents rose about 1 percent, growing slightly from $1,088 in April to $1,097 in June.
Mirroring Texas, San Antonio’s second-quarter one- and two-bedroom rental markets dropped a bit, becoming even more affordable.
In April, the median one-bedroom San Antonio rent was $971; in June, the price actually fell to a median of $967. Two-bedroom units also became more affordable, as the April to June median San Antonio two-bedroom fell 2.6 percent, from $1,262 to $1,229.
The Texas residential rental market remains steady for several reasons:
- Amid the pandemic, many people are staying put and have put off moving plans for now.
- Some residents have had to sell homes they could no longer afford and have therefore entered the rental market.
- Landlords are reluctant to raise rents when collecting rent during COVID-19 can be an issue.
- Some new apartment developments have slowed or paused construction.
Overall, property managers and landlords are facing a new normal of life, specifically in this virtual world during the COVID-19 pandemic, Abodo explains.
But decreases in supply have offset any instances of falling demand, and therefore, the market is stable right now. If the economy does not improve, construction financing could dry up quickly, and paused apartment construction may stay that way.
In the coming months, we may continue to see lessened demand tempered by smaller apartment supply, pointing to continued stagnation for the residential rental market in San Antonio and Texas as a whole.