Spotlight On: Jason Arechiga, Senior Vice President of Development, NRP Group
Key points:
- • San Antonio’s multifamily oversupply is giving way to a potential supply gap.
- • Local knowledge helps developers navigate permitting, construction, and emerging growth areas.
- • Population and job growth are supporting confidence in long-term housing demand.
September 2026 — In an interview with Invest:, Jason Arechiga, senior vice president of development at NRP Group, discussed San Antonio’s multifamily supply cycle, the importance of local knowledge, and the company’s plans to position projects ahead of the next market upswing. “The market is difficult today, but the combination of continued population growth, new jobs, and a decline in future supply creates an opportunity for projects that are prepared early,” Arechiga said.
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How would you describe San Antonio’s multifamily market today?
It is slow because a great deal of multifamily and single-family supply was built when money was cheap, interest rates and the 10-year Treasury were low, mortgage rates were lower, and properties traded at low cap rates. San Antonio is forward-thinking about development, and permits often take about a year when they could take a year and a half or two years in Dallas, Houston, or Austin. At one point, just under 14,000 multifamily units were developed in a year in a market that absorbs about 6,000 units. The good news is that San Antonio is an absorption market. The question is when the supply will be absorbed, not whether it will be absorbed.
Why could the market face a supply cliff?
Fewer units were permitted last year; roughly 2,200 are being permitted this year, and next year may be 1,000 or fewer. The market cooled, rents came down, and vacancy went up. It is difficult to make deals work, so there is less institutional equity and capital coming into San Antonio while investors wait for signs of recovery.
People continue moving here, and other industries are growing, so the supply will be absorbed. Developing a project can take two years before construction, and multifamily construction can take about 22 months to build. Even if permitting takes only a year, new units may still be two and a half to three years away. Investors underwriting only to today may miss what the market could look like when those units arrive.
How is NRP positioned for the next phase of the cycle?
The market became a victim of its own success. Development accelerated, and because projects trail the market, supply ultimately exceeded demand. Investors with a longer view and companies that have been here a long time can recognize what is coming.
We expect more capital and equity interest in the San Antonio multifamily segment in about a year. We want deals under contract, city officials aware of them, and partners lined up so we can move and be a year or two ahead of the competition. I expect more growth on the south and east sides, while we will also look for inner-city properties that fit the city’s goals. Recent job announcements at Brooks and Toyota’s expansion reinforce my expectation that the South Side will grow substantially.
What advantages come from NRP’s local experience and construction capabilities?
Third-party construction is becoming one of our larger business lines. Other development groups ask us to build for them because of the reputation we have established over 30 years for delivering quantity and quality within budget. Most projects are now coming in well under budget as work has slowed. We self-build our own developments and also build or develop for others. Because we have lived and worked here, we have relationships that help us contract for land, work through permits with architects and engineers, and address delays. We understand the culture and know whom to call when a project is held up. Timing can cost a project money, and local knowledge helps.
Where should affordable housing development be focused?
San Antonio is a good city for affordable housing and is trying to meet the need, but there will always be a gap. The city is focusing partly on the inner city and on the VIA Metropolitan Transit’s Rapid Green and Silver Lines, but we should not abandon areas such as the South Side, where extensive transit may not come first. Jobs can bring rooftops, followed by commercial development and transportation. Affordable housing needs to secure locations before prices rise to the point that development becomes nearly impossible. The focus should remain countywide, with an emphasis on the city center but not to the exclusion of outer areas.
What construction and financing challenges are affecting projects?
Labor costs are coming down, which helps construction pricing, but materials have not declined much. Affordable housing can use federal funding, but that can trigger Build America, Buy America requirements. The principle is understandable, yet some products, including certain hardware and granite countertops, are not made domestically. That creates difficulties nationally and affects affordable housing in San Antonio. The remaining oversupply also affects underwriting because rents are lower and vacancy is higher. Until those conditions fully correct, outside capital is less likely to return. Local operators can evaluate individual pockets of growth while distant investors may view San Antonio only at a high level and based on current conditions.
How is technology changing properties and NRP’s work?
When technology makes work more efficient or cost-effective, we use it, although building codes can lag behind new approaches. Properties now include electric vehicle charging stations, common-area Wi-Fi, and sometimes bulk Wi-Fi for the entire development. Internet access has become close to a basic need in affordable and market-rate housing. In the office, we use tools such as Copilot, ChatGPT, and Claude, and we monitor what may be disruptive to the industry. AI may eventually support real estate contracts, but a human element remains valuable. We want to incorporate new technology while keeping that human review.
How do affordable and market-rate residents’ needs differ?
Affordable housing primarily serves families, including many children and single parents, so resident services are central. We offer HOMEWORK First programs for children after school, food pantries, summer camps, English as a second language, health and wellness screenings, and other services. Market-rate residents may place more emphasis on social gatherings and amenities. Across both types, we look for safe, secure, and clean homes, and we pay attention to sound between levels. Small details, including appliances, lighting, layouts, and countertop materials, can distinguish a property. We are favoring lighter, timeless designs and durable materials, such as granite or quartz rather than laminate.
What gives you confidence in San Antonio’s longer-term outlook?
San Antonio can be as strong a growth market as Dallas-Fort Worth or Austin, and the Austin-San Antonio corridor could eventually resemble DFW. There is no geographic reason it should not; it simply needs more time. The city’s first large affordable housing bond under the Strategic Housing Implementation Plan was especially effective. Its targets made sense, and it produced more units and more deeply targeted units than I have seen in some other places. I would support another affordable housing bond, even as the city works through budget constraints. The market is difficult today, but the combination of continued population growth, new jobs, and a decline in future supply creates an opportunity for projects that are prepared early.
Want more? Read the Invest: San Antonio report.
