San Antonio has experienced a sharp decline in new multifamily construction permits, with just 18 filed so far this year compared to 526 in 2020. This represents a 96.6 percent drop, the largest percentage decrease among U.S. cities according to an analysis by HomeAbroad based on U.S. Census Bureau data for the period between 2020 and 2025.
Despite the slowdown in development, San Antonio continues to see rapid population growth, ranking fourth nationally for new residents. Nearly 24,000 people moved to the city between 2023 and 2024.
Other Texas cities have also seen declines in multifamily permits over the past five years: Austin’s permits fell by 29 percent (from 1,868 to 1,321), and Houston’s dropped by 14 percent (from 1,669 to 1,409). In contrast, Dallas-Fort Worth saw a nearly 20 percent increase (from 4,847 to 5,800).
A surge of apartment construction across Texas in recent years has led to an oversupply of rental units. This surplus has contributed to falling occupancy rates and rents across major metropolitan areas.
JLL’s Kai Penn commented during a Connect CRE conference that “San Antonio ranks second in the country for rental affordability, with renters spending an average of 17 percent of their income on housing.”
According to Newmark data from mid-2025, San Antonio had an average occupancy rate of 93.2 percent and an average asking rent of $1,237 per month. The significant reduction in new development is expected to push these figures higher.
Despite fewer projects breaking ground, demand for additional housing remains high. A report from Up for Growth found that San Antonio is underbuilt by more than 25,000 housing units as of this year. Other Texas metros face even larger shortages: Dallas-Fort Worth is short by about 122,000 units; Houston lacks around 79,000; and Austin needs approximately another 24,000 units.
Kai Penn stated at the Connect CRE conference: “San Antonio ranks second in the country for rental affordability, with renters spending an average of 17 percent of their income on housing.”
The current state of San Antonio’s multifamily pipeline highlights ongoing challenges as developers respond cautiously amid shifting market conditions and persistent demand for more housing.
