2026 San Antonio, TX Market Outlook for Passive Real Estate Investors with Guest Daniel Khalil

All right, it is 2026. It is our first meetup of the year. 2026 Central Texas Market outlook for pastel investors. Excited to have Danny with us this evening. We just finished our breakout groups and that's always important to me because networking, you can't record networking. You know, it's like one of those things you got to do as much as you can. So excited for having the opportunity to have those conversations. And now we are ready to get started for have just joined our meetup. We have about 16, almost 1700 members within our meetup each month we'll have about 15 to 20 people join. And so it's nice, intimate and you can learn quite a bit through the speakers and the discussions we have and just from people here. But we'll talk about the good, bad and ugly of multifamily investing. This will be an example of San Antonio when we, you know, there'll be good, bad and ugly of San Antonio and those are the type of things we talk about each month. But it's a place to network, build relationships. We do the breakouts from 7:05 to 7:15. So for those that are just joining or joining in the future, there's always networking in the very beginning. Then we go into guest presentations and Q and A. One of the things I love about the virtual meetup is you've got people all over the country and you know, you just have those opportunities to, you know, connect a network. So a little bit by myself. We've got about 60 million assets under management primarily in Texas. We just purchased with our partners. We got several partners on this call, two in San Antonio last year. We've got a multi family hotel and retail development and Brian that we're working through. But I would say 80% of our portfolio is multifamily in the Texas Triangle and then have about 20, 25% that does more development. So we've done a 20 by 50 storage development. We're doing a build to rent community and then as I mentioned we're doing this mixed use development in Brian so. But our bread and butter is multifamily. It's what we're passionate about. It's what I've doubled down on when a lot of people have left multifamily. At the end of the day people need a place to live and I've seen these cycles through my 18 years in commercial real estate. So excited to be in the cycle right now buying multifamily, especially when a lot of people are not. These are great times to buy so excited about that. My team member, Shelby, she's my right hand lady, she is our chief of staff at CRIA Partners, but she's also heading heads the investor relations. So most of the people on the call that have been in our ecosystem have spoken to her or at least a text or a call has been reached out. She loves building relationships and been with us a little over a year and you know, helping you through the system, you know, hospitality, white glove experience is what we really prioritize and hope for at CR Partners. Got two more slides. This one here, this is free education. I have a lot of investors that joined. I know a few of y' all just listening in. This is, you're, you're just learning about passive investing, which is amazing. You can do our month, this monthly call and It'll take you 12, 24 months to get all the information and that works for a lot of people. That's great. But if you're wanting like a crash course, this is free. There's no sales pitch, there's nothing other than like I really wanted to put, you know, five to six hours worth of content all in one place for you to join. It's free. Passiveinvestorcoaching.com I just really like surrounding myself especially in our deals that know about the risk and what to ask for during investments. So take that as a tool that you could use. All right, so enough about CRI Partners and pass investor coaching. I want to introduce you to Danny. I've known Danny for several years. He is the expert at the with anything real estate with south and west Texas with CoStar. Like mentioned prior to the recording, Danny and I met, you know, a couple months every year. I really try to, as a subscribing member of CoStar, take advantage of their research department. It's by far the best of the best and you know, it's not cheap, but that's something that, you know as a limited partner who are investing in our deals, like we need access to this great research. And so Danny is an incredible resource. He's based in San Antonio and I know he's got a lot of, you know, content to provide us and I know that he would love to, you know, have questions and such. So feel free to put questions in the chat box. I will read them or when he says you can definitely, you know, ask questions throughout. So with that I'm going to stop share and turn it over to Danny. Danny, thanks for joining us.

Happy to be here, y'. All. Hopefully everybody can hear me just fine.

We hear you.

Great. Now let's. Let's make sure you all can see my slides just fine.

One moment.

Okay. All right. How's it looking? It is good. Thank you so much. Appreciate the introduction, Wayne. I definitely don't. Don't deserve that much praise, but I appreciate it and I appreciate you reaching out and being an active subscriber. A lot of people are more interested just in the data and kind of looking at things, and other clients, I think, are more interested in asking why and trying to get more qualitative information in some ways. And Wayne's definitely one of those people. And so I appreciate those kind of clients, to be honest with you. It makes things interesting for the job to be. To be sure. And I like digging in with the data, digging into the data with you guys. And I hope that you all enjoy today's presentation. So without further ado, I'll go ahead and launch into this presentation today about the San Antonio multifamily market. Like I said earlier to some of you all in the breakout room that I was a part of, we're going to try to include more than just San Antonio in this presentation. That's going to be the. The main focal market here. It is my main focal market at costar. But there's going to be plenty of good information in there as well about. About other markets, especially Sunbelt markets that are quite similar at the moment, and they're all kind of experiencing much of the same thing in early 2026. So we'll go ahead and kick it off. So we'll start with the situation that's making all the headlines right now. Right. And that is the vacancy situation. So for the apartment market locally, and this is what you're looking at, the local apartment market vacancies have risen quite a bit in San Antonio as of right now. We're looking at vacancy rate just below 15%. That is well above where it has been historically. Historically hasn't gone much over 11%. You'll see. The forecast, of course, is that it's going to probably be going down from here, but the question is, how did we get in this situation? Largely, it's due to supply, and I'll dive into that in future slides there. But this is something I think you got to lead with because this kind of sets the tone for the rest of the discussion and the presentation. We can talk about why the dynamic in the local market is what it is today, and why is it possibly going to change in the future. As you can see, by 2027, 2028, 20, 29, we're envisioning that the local vacancy rate will be a lot lower than what it is today, or at least notably lower. Maybe it won't go back to the situation it was in when San Antonio was a lower development market where it was about 9% vacant, but definitely probably down from here according to our base case forecast. And this is the same thing still at the local level for San Antonio, broken down by star rating. So star rating is quality types of apartments. So the local multi family market can be dissected in a number of different ways. CoStar calls 1 and 2 star or calls the, the lower segment 1 and 2 star, the middle segment 3 star. And then 4 and 5 stars kind of are higher end for, for the local apartment market. They roughly correspond with class A, excuse me, class C, B and A apartments respectively. But there's a little bit of nuance there because you can have some four stars that are class C. Technically it's, it' the quality of the product at the end of the day and higher quality product generally correlates with four and five star and that also generally correlates with newer apartments. So what's possibly going to be leading the local vacancy rate lower in the future is going to be that four and five star segment and that's really the four star segment doing the heavy lifting there because there's just not a lot of five star apartments in many apartment markets and San Antonio is one of them. So it's a lot of four star inventory that's been delivered. Some things that have kind of nicer amenities and those complexes are probably going to be seeing most of the absorption, I would say over the next few years and that's going to bring the market wide vacancy rate lower. Now you'll notice the three star and one and two star may be stuck for a bit in kind of higher territory. To be honest. I think there's a little bit of extrapolation there and I, if you, if you were to ask me, I don't think that these trends will necessarily differ that much between all those cohorts. But looking into the future, if you know what's happening right now continues to happen into the medium term, there will probably be more downside risk there for the vacancy rate for that three star segment and that one and two star segment. Of course, you know, I mean there's, there's room for debate there. There's a variety of forecasts we produce, but that's our base case right now, By the way. I want to say like just because something is four star doesn't mean it's necessarily the, the nicest complex out there. There are plenty of what you may call average normal apartments that just happen to have nice new amenities that we would also classify as four star. So it doesn't have to be necessarily top of the top there. Actually about half of the apartment inventory in San Antonio would be about four and five star. So. And that's true for many markets. Actually in Austin I think it's like 60%. In Dallas and Houston it's about 45% of the apartment markets about four and five star. So the four star level is not maybe as high as you'd imagine. Anyways, we're going to take a step back there. I got really in the weeds and we're going to look at things at the national level. It's much of the same, to be honest with you. The vacancy rate at the national level kind of a little stubborn for some of these lower rated segments. You know, the 1 and 2 star and 3 star, possibly nationally, eventually eclipsing that 5 star segment in red. But we'll see, we'll see how that goes. Personally, I think that it may not be that way. If you ask me, I think that the. There has been some movement in reducing vacancies in the four or five star level, but that may not continue to be the case over the next couple years. That being said, we're seeing this at the national level as well. So let's look at demand for apartments. Enough of vacancy. Talked a lot, a lot about that just now. I want to talk about demand, which in the real estate industry is always measured or almost always measured in terms of absorption. So absorption is what was occupied last quarter and then what's occupied today. So if there were a hundred more units occupied today in your local real estate market, that's 100 units of absorption. So that's how we measure demand for the most part in real estate economics. And San Antonio had a pretty rough year there in 2022. It was the first year on record, first calendar year where it had negative demand for apartments. But that had a lot to do with the run up we saw in 2021 and 2020. And what goes up often does come down, at least for a bit. You can see that the market has rebounded in a quite healthy way I think since 2023 and 2024. That rising interest rate environment did affect things in mid 2020. But ever since then we've seen pretty healthy absorption, pretty strong demand and then moving forward into the future. It looks like demand is probably going to be healthy at about 1,000 units of absorption pretty much into the end of our forecast there, all the way to, to 2030 essentially. And that has to do with some strong fundamentals in the market, which I'll talk about later. You know, population growth, job growth and wage growth that are supporting this. Texas metros are among some of the top metros in the country for absorption. That has a lot to do with the fact that we've just built a lot here. So what you're looking at left, on the left there is the top major markets for absorption and then on the right the I guess bottom 50 markets for absorption. These are major markets, right. So we're talking big cities here and their suburbs. So when I talk about San Antonio, I'm talking also about New Braunfels and Seguin and Bernie and what I'm talking about, Dallas, Fort Worth, I'm talking about those two cities as well as, you know, Collin county and places like that. So you can see many markets that look familiar. On the left hand side, a lot of Sun Belt markets have some pretty healthy demand there. A lot of this is a function of how big the market is too. You know, Phoenix there, I know we've got, I think Tim on the call from Phoenix, so I wanted to give that place a shout out. It's got 16,000 units of absorption. So that's pretty strong, pretty healthy. Austin, of course, Atlanta, Dallas, Fort Worth, San Antonio is towards the bottom there on the left hand side. That has to do a lot with the size of local apartment market. But yeah, I mean you could see a lot of Sunbelt markets there on the left for, for absorption, for demand. So that's indicative of the population growth in this region. And then when you control for the size of the market, so you take absorption basically divided by the total inventory the existing units there. You know, some of these Sunbelt markets move up a little bit, including San Antonio and Austin, which is at the top there. Phoenix, Orlando, Tampa also up there as well. So these are many of the high growth markets that we're seeing strong, strong demand for. It's also where we built a lot of product. So if you built a lot of, if you build a lot of apartments in an area, you also give people a lot of opportunities to absorb those units. So part of it is there's strong demand in these markets and part of it is that there's also just been a lot of building in these markets. So we also saw a recent wave of Deliveries here and you can see what's, what's to come. It's, it's not much in the San Antonio market and this is reflective of the Sunbelt more broadly. So now we're zooming back in to south Central Texas specifically and you're going to see here net deliveries over time. So what is, what's a delivery? A delivery just means a project completion. It essentially just means we're done with construction, we're leasing up these units. The apartment complex has come online. Now. San Antonio experienced quite the wave as you can see there in 2023 to 2020 into 2024 and now moving into the future. It's unlikely that we're going to see many deliveries that are anywhere close to that. What we saw over the past two or three years. That has a lot to do with financing, honestly. It's the interest rate environment. So long as interest rates remain kind of where they are and there's a lot of headwinds for multifamily construction for a number of reasons. You know, I, I would say that it's unlikely that we're going to see this much new competition, this much, this, these many deliveries in the near term future here. So as you can see, looking forward into our forecast, it may start to approach that 1,000 per quarter we're going to add to the apartment market mark, but it's unlikely to reach that anytime soon. So many markets around the country, not just this one, saw a similar influx of new supply. These are deliveries, apartment completions in a variety of markets, not just San Antonio. You can see, of course, the bigger markets tend to have more deliveries. That's just a function of how large they are. New York City. But right next to New York City is Dallas Fort Worth in the number two position. And that has a lot to do with the fact that DFW is just a fast growing metro and it's large, not quite as large as New York City, nowhere near as large as New York City, but it has almost as many deliveries or it has had almost as many deliveries over the past 12 months. So that speaks to, I think the growth supply in Texas recently. Austin is up there as well with about 20,000 deliveries over the past past year. So that's, that's something. San Antonio at 9,000, so definitely sizable. And I think Houston is also up there. Yeah, at 18,000. So I mean these markets have added a lot of new supply recently and that's, that explains the dynamic you were seeing earlier with these higher vacancy rates and the situation today. So a Lot of this is, is, is what's going on currently. It's not necessarily indicative of longer term trends. Now when you control for the size of the inventory, you can see just how much growth there has been too. I mean, it's just in, in terms of the total apartment market, I mean, San Antonio added 5,4% of all apartments that exist at all today were added over the past 12 months. And in Austin, it's 6.2% of all apartments that exist at all in Austin were added over the past 12 months. And that's the case in many Sunbelt markets. You see like 4.6% in Miami, Denver, close to 4%. A lot of fast growing places like Atlanta, 3.5%. So that's a lot of apartments to be adding just in the span of 12 months. And that explains the situation right now. It's a pretty temporary situation, to be honest with you, because this supply wave will pass. But it's definitely, I think, something that explains what's happening. And apartment construction starts. So groundbreaking, what we're kicking off in terms of construction has slowed significantly. I think that all the headwinds I outlined there in terms of interest rates and financing and what's happening for competition in terms of competition, that explains why we're just not kicking off as much construction right now. So what you're looking at there is construction starts over time. In San Antonio, you could see that really over the past year, it's been about a thousand thousand units worth of groundbreakings or less. And then moving into 2026, we don't have a forecast for construction starts, but it's probably going to be pretty, pretty low. You know, I would imagine moving into 2027, late 2027 specifically, you're probably going to see what's called, what people are calling a supply cliff in the local market. There's just not going to be a lot that's delivered or added to the local market. That's going to probably be true in many markets, you know, because they're all facing the same realities right now. Labor has become more expensive for construction, construction financing has become more expensive. Interest rates are up, and there's strong competition. So I mean, 2027 and 2028 are probably going to be pretty low delivery years for a lot of markets in this region throughout the country, to be honest with you. Also clear when you examine the local construction pipeline. So this is another way of looking at it, but it's essentially what's under construction over time, what's currently under construction. And you can see Right now there's only 4,000 units under construction in the San Antonio market. That is not a lot of construction at all, especially when you consider the fact that it was, you know, at one point close to about 18,000 units under construction. You know, every market right now is seeing less, less construction and we are no longer one of the nation's top construction markets. So, you know, there's just not a ton of apartment development happening here nationally. Again, it's kind of taken a bit of a backseat as people focus on, you know, other aspects of the multifamily industry. But construction right now has died, died out. Actually, San Antonio is one of the lower construction markets right now. You can see 3.9K under construction. That's, that's well, well below where we typically are. It's really Houston, Austin and I think, yeah, Dallas, Fort Worth are still above average there. Now when you control for the size of the inventory, things change a little bit. But for the most part, we have seen this, this slowdown in construction. So some of the markets where we still are seeing decent amount of construction are Miami, Charlotte, Fort Lauderdale, Nashville, Phoenix and Austin. But for the most part, every other market has been seen less year over year. Now let's talk rents. So the average rental rate in San Antonio is now close to about 1250. So you can benchmark that in your mind as maybe what the average asking rent is here. It's pretty low compared to the national average. You know, Texas in general tends to have lower cost of living compared to many markets and San Antonio in particular does. So you can see that broken out here by, by segments. So 1 and 2 star kind of that lower rated segment, 3 star and then 4 and 5 star, which has a larger gap there. Our base case forecast, like I was saying, is imagining a bit stronger rent growth in that four and five star segment with most of that being from the four star cohort in particular. And then the three star, maybe we'll see. It might be treading some water there. You know, I'm not so sure that there's going to be such a large gap. But that's our base case forecast right now. And rent growth has, has declined, you know, like I was saying, but it is forecasted to rebound. So you look there at where we were in the 2021 to 2023 period. So that really, the 2021 to 2022 period, that, that's when we saw that big run up in rent growth to today. I mean, it just. All the cohorts, all the segments show the Same trend. It was this run up in rent growth in that, in that period of time. And then over the past couple years it's been a bit sluggish. Right. This is kind of how markets work, especially when you have this big post pandemic boom that happened in 2021, 2022. A lot of people got ahead of themselves probably in the industry and then things slowed down quite a bit over the past couple of years, thanks in no small part to the rising interest rate environment. But things may change in the future. We are imagining a rebound for rent growth pretty much across the board. So in the one and two star segment, which was outperforming, really that lower rated segment was outperforming past couple years, you know, it may, it may see lower rent growth. In the four and five star segment we will see. I think a lot of the assumptions behind that in our forecast are that the four and five star segment has been seeing pretty strong demand lately. So maybe they could see higher rent growth. But generally there's, there's probably going to be something of a convergence towards longer term trends as the supply pipeline peters out and we get closer to 2028, 2029 and things maybe start getting more normal around here. And this is the last real estate slide I have for you because I got three more after this that are basically just talking about population growth, wage growth, things like that. But this is the national apartment market. So zooming out again, but this is just talking about rent growth. It's much of the same as we're seeing in the Sun Belt. So you see there it's broken out, you know, actually between four star and five star there, but kind of in a similar way to the chart I just showed you. A lot of these trends are playing out nationally. So it's not just, it's not just something that's in the Sunbelt or Texas or San Antonio though things are quite exaggerated I'll say right now in the Sunbelt, in San Antonio and markets like this because of just the amount of construction and how the dynamics change things up quite a bit. So moving forward, I think one of the things that's important to keep in mind with any market is demographic momentum. Right. I think markets that have strong population growth, strong wage growth, strong job growth tend to have a strong and healthy base, you know, for, for I guess, multifamily fundamentals in the future from a market wide perspective. So you look here, you can see San Antonio next to its peers in Texas. So this is just job growth. Now we're Talking non farm job growth, which is the blue right there. And then this is growth in weekly earnings, wage growth basically for private sector workers. That's those yellow dots. And San Antonio is performing above average right now. Really right up there for wage growth with Houston and El Paso and then the strongest in the state as far as job growth is concerned, based on the latest data we have from the BLS, which is always a few months out. So. Yeah, 1.8%. Yep. Hey, this is Tim. Can you explain the importance of the blue non farm job growth? Yeah, so it's, yeah, so very important obviously for real estate fundamentals. Right. But it's, I guess you want me to explain maybe more why it's important for, for the multi family market or for like. Sure, both. I'm just, I'm not that familiar with what, why farm and non farm jobs are marked separate. Yeah, it's just, I think it's the way the BLS divides things up. You know, the Bureau of Labor Statistics is the government organization that we all kind of look to to give us these big high level stats. And you know, non farm jobs are for some reason the way things are divided up there. You know, I'm not a labor economist so I can't tell you exactly why they do that. But usually job growth, whenever someone talks to you about job growth, it's almost always quoted that way. So that's, that's part of it. But. And yeah, of course we're talking metropolitan areas here, so I thought they were just maybe trying to factor out seasonal stuff. Yeah, so this, this is not seasonally adjusted, but no, I think it's just the data set and, and how it tends to be produced. Okay, great, thank you. Yeah, it's always quoted that way by the BLS for some reason. I'll have to ask a labor economist. It's a great question, but it's almost always quoted as like non farm job growth and. Yeah, so pretty healthy here. And what's interesting too is office employment, which is part of this, clearly has been pretty resilient in San Antonio. So most markets lately, especially those that are more exposed to tech and kind of more cyclical industries as we call them, you know, more interest rate sensitive industries like finance and things like that. So a lot of those markets have struggled lately. San Antonio has a pretty strong finance segment of its local market, but it also has a pretty strong like defense segment and healthcare segment. So that helps kind of insulate it from a lot of the weakness that can occur in the labor markets of a recession. Or an economic downturn or just sluggishness. Right. You don't necessarily have to be in a recession to see job growth slow, but San Antonio is kind of insulated from a lot of that, so that helps. And it's really just San Antonio, McAllen and to some extent Austin are kind of treading water right now for office jobs. And then we're seeing a little bit less strength in Dallas, Fort Worth, Houston and especially El Paso right now. Moving forward, population growth is the last slide I got for you guys. So I appreciate you holding on to the end. Looking forward, population growth probably going to continue to be strong in San Antonio, this market. So when I say San Antonio, I'm talking the whole metropolitan area adds 40 to 50,000 people every year, which is. It's a lot of people as a rate of growth. It tends to be similar to Dallas, Fort Worth and Houston, a bit behind Austin, but one of the fastest growing MSAs in the country. And that's probably going to continue to be the case moving forward. That's just a lot of people to add to your MSA boundaries every year. We are envisioning that over the future. That may slow a bit for a variety of reasons. But you know, so long as you have the fundamental drivers of a, of a city, of a metro like this, with has, which has low cost of housing, low cost of housing, strong job market and other things like that, you're probably going to continue to attract people, domestic migration and that's it. That's. That's what I've got for you guys. Appreciate your time today. Wayne, I'll hand it back to you and I'll make the slides available too. If you have any questions, I'm also here to take them.

Hey Danny, real quick, before we go to the group for Q A, can you let people know how they can reach out to you? Because they may watch it on YouTube or listen in a podcast form.

Yeah, absolutely. So my email, I don't have it here on the screen, is D Khalil. So K H A L I L is my Last name@costar.com Feel free to reach out to me if you have any questions. Always love talking about my market, my main market, of course, but also the, the rest of the state of Texas and other markets I cover. So mostly south and West Texas and then I cover Central Texas outside of Austin as well. So that includes College Station and then Waco and Colleen Temple.

I love the slide that there's 40 to 50,000 people going to be moving in every single Year, because it just goes back to when we look at, like, the supply. I mean, that supply is going to get eaten and then you have a development, you know, shortage at some point. So there's going to be some supply and demand issues. Danny, can you also talk about, like, what San Antonio has going on for it? I know, like, they drained the Riverwalk a couple weeks ago to get that going. But, I mean, there's a lot of revitalization, tourism. Can you talk a little bit about why people love San Antonio from a that standpoint? Because that does impact, you know, multifamily as well, quality of life.

Yeah, absolutely. I think there's been a big infrastructure build out here as part of the 2017-2022 bond cycle. A lot of the construction projects have kind of been delivered late. But, you know, there's been improvements on the Broadway corridor, for example. If you ever drove that stretch of Broadway from, like, downtown through to Alamo Heights, it's changed quite a bit, especially the portion close to downtown. So there's been a lot of infrastructure investments by the city. It's been interesting to see that, because I think they invested $800 million or something like that during that bond cycle into infrastructure. Largely, it was the most downtown concentrated bond cycle, too. So there was a lot of that that happened. Hemisphere was a big redevelopment that saw some money from that. And then the Pearl is a private development that's owned by Silver Ventures and Kit Goldsberry's team. There's. So they. They've actually seen their footprint expand kind of organically, you know, outside of, you know, any public investment or something like that. It's been a lot of expansion, I think, from just development and then just like, people who are interested in living in the area outside of. Outside of that. So that's been interesting to watch. And then on the kind of further out, the 1604 corridor, there's just been a lot of residential growth, especially on the Far west side. The Far west side is kind of where you see a lot of that suburban growth. And then New Braunfels as well, I would say, is another key, key area. But if I had to, you know, tell you, hey, these are the three areas where I'm seeing, like, a lot of momentum and, and growth, not just in terms of construction, but rooftop growth. It's. It's midtown downtown. It's probably New Braunfels, and it's probably the Far west side. They've all got a different situation going on. But those are the three areas that just have a lot of momentum, it seems right now. Sorry, I think you're muted, Wayne.

Actually, if you're so sorry, I was reading one of the questions is what is a good estimate for the number of individuals that occupy a multifamily unit? Do you see? Is it like a one person, two, two and a half? Is any data on that?

Interesting. So, you know, the Census Bureau publishes the American Community Survey every year. They're about to come out with new estimates this week, I think at a pretty small level, like the census tract level. So you can see that, like these averages. But yeah, a lot of the, the averages have been going down over time. I don't know exactly what the average household is for, you know, a rental unit, like household size, but household size has definitely been going down over time. It's a little bit larger in San Antonio, like slightly than, than the national average, but it's been going down quite a bit. Probably like two is just a little bit below that maybe.

Yeah, yeah, it's a great question. One of the things I noticed during COVID was people started getting too, like, you're single or like, maybe you're a couple. But then you went with the two bedroom, just give you that extra space. But then it's sort of gone back to, you know, let's have some extra spending money instead of get that second bedroom. What other questions we got? We got a still group left. You can text it or ask questions here. One of the things that. Man, I love San Antonio for a lot of reasons, and we're obviously investing in it. Where we're targeting is North Central, and that's sort of the pocket that CIA partners were just digging in because there's not a lot of new supply. Sorry, it's pretty constrained. It's already a built in. You know, it's already been developed over many of the years. A lot of the growth that you're seeing is west San Antonio. Can you talk a little bit about west San Antonio and just why the growth is happening that way versus some of the other areas?

Yeah, so, I mean, for many years the northwest side was kind of the premier suburban area. And in many ways it still is for residential suburban living. If you, you know, for people that kind of want, you know, that, that kind of lifestyle, that was kind of where. Where it was in many ways, kind of like the average of the city and the hub of the city was kind of the premier suburban area. And it still is. But a lot of that is kind of moved westward on 1604, which is the outer loop of the city on Loop 1604, it's kind of moved westward and now the far west side, so it's not just the northwest side, but kind of the far west, to distinguish it from the inner west side, has seen a lot of momentum and it's just really spillover, essentially. It's a lot of spillover. A lot of people who want good school districts in that area, but also, you know, want affordability and things are kind of new and nice and it's very car dependent. But a lot of people out there know what they're getting into and some people like it. So that seems to be a lot of what's driving that area. And the midtown downtown is being driven by like the urban revitalization trends that are kind of occurring in every market right now, every big city. So that's a little bit of color.

Yeah, that's all good points. You also start getting into like beautiful parts of San Antonio, the hill country and such. So. All right, cool questions are coming in. Are you seeing any trend where more people are roommates in two bedroom to save money and that's affecting the occupancy percentages? It's a really great question. Are you seeing people rooming up to.

Well, so I will say, I mean, it's a lot of what you're getting at is called household formation. That's kind of the, I guess the technical term for it. And it's a, it's a good question. I, I think, you know, household formation tends to, it tends to increase during, you know, economic boom times, essentially. Like we saw a lot of that in 2021, 2022, and it tends to like go down. Essentially. You send, you tend to see people increasing their household size during, you know, times when things are not maybe going so well, the job market's not too great and what have you. So a lot of the household formation growth we saw was, was in that 2021, 2022 period. People split off from roommate situations, moved out of their parents house, things like that. And then we saw, with 2022, which is why I think you saw negative apartment demand that year, a little bit more people kind of consolidating interest rate, shock, things like that. And then I think since then it's been something of, it's been more or less at something of an equilibrium. We're seeing household growth, household formation, but we weren't seeing the, we aren't seeing the levels that we saw, you know, four years ago or something like that. It just, it's not the same market. People have to feel really confident usually in their job situation, their financial situation, to start splitting off and agreeing to pay the entirety of rent on their own. That doesn't quite answer the question directly because I don't have the statistics right in front of me. But essentially what you're getting at there is household formation and I think if you email me after this, I could probably look up some, some stats on that. We can have a conversation.

Yeah, well I can tell you on our portfolio we are seeing it where people are. There's a lot of uncertainty and so people are, you know, becoming roommates and such and moving back home, mom and dad. So just something we have to work through as well.

While you.

One question. I don't know if you'll have this Danny, but maybe something rich you follow up afterwards. But while you showed the percentages on office jobs and also wage growth for San Antonio and major Texas cities, can you provide what those actual job growth and. Or office job growth and average wage numbers for a better comparison? So I don't know if you'll have that data on this, but.

So I don't. So the question is about. So actual.

Yeah, actual office job growth and average wage numbers for a better comparison.

Well, so I mean generally the sectors where we've seen significant wage growth over the past year, it's been health care and it's been to some extent hospitality. Some of these kind of more resist cyclical, cyclically resilient industries. Office has not seen as strong of wage gains. I think generally speaking most of these stats by the way at the metro level are published. They don't break them down by industry. I would have to pull some national data and look at it that way. But I mean I'll tell you as far as wage growth is concerned, a lot of the wage growth leading industries nationally have been the non office segment. It's been a lot of health care, social assistance, that bucket and then also probably leisure and hospitality too, surprisingly enough, which is a very cyclical industry. But there has been some notable growth there. But other than that it's largely healthcare that's kind of doing the major heavy lifting right now.

Well Daniel, leave it on that for this recording for those that are on in this meeting being recorded live, I'm gonna stop recording and then maybe give a few more minutes for questions. But Danny, thank you so much for joining and giving us, you know, a lot of this information especially early on in the year as we look to invest in Texas, I think not only San Antonio markets but elsewhere. So Danny, thank you again for your time.

Yep. Happy to be here. Thanks for inviting me.