The Law of Supply Seems to Be Working in the San Antonio Apartment Market

The law of supply says "There is a positive or direct relationship between P and Quantity Supplied, ceteris paribus (holding all other factors constant). So as the price rises, producers will offer more for sale.

Rents are way up but so is construction on new apartments.

See ‘Pretty crazy’ rent increases in San Antonio are driving unusual boom in apartment construction by Madison Iszler of The San Antonio Express-News. Excerpts:

"Rental rates in San Antonio and other U.S. cities have risen sharply over the past year, fueled by surging house prices, tightening supply and an increase in the number of people seeking their own space after living with relatives.

Though more apartments are in the works, renters won’t see a big increase in inventory this year.

The median rent in San Antonio jumped to $1,222 in March, up 15.1 percent from the same month last year and 16.8 percent since March 2020 at the start of the coronavirus pandemic, according to home search website Apartment List."

"San Antonio-area builders sought permits for construction of 15,254 units last year, a “jaw-dropping” number that was well over twice levels in 2020 and 2019, the report notes.

About 17,657 units are currently under construction but only about 5,174 are expected to be completed this year."