Austin Rents See Sharper Decline in Latest Data

Apartment rents in Austin are continuing their downward trend after a temporary pause during the summer months, according to data from Apartment List. The latest figures reveal a year-over-year drop of 5.4% in Austin rents, significantly outpacing the nationwide decline of 1.4% and Texas’s overall 2.2% decrease.

Key Trends in Austin’s Rental Market

Austin’s rental market showed a sharp decline in September, with rents falling 0.7% from the previous month. The drop coincided with the end of expanded unemployment benefits and a brief lifting of local eviction moratoria in August, prior to the Centers for Disease Control imposing a nationwide moratorium on September 2.

Highlights from the data:

• Year-over-year Austin rents decreased by 5.4%, compared to a 4% decline reported by RealPage.
• The city experienced the eighth-largest rent drop among major U.S. cities, based on RealPage data.
• A separate report by Capitol Market Research estimated a 2.6% decrease in apartment rents in the Austin MSA since December, the first such decline since 2009.

Insights from Real Estate Experts

Apartment List’s data reflects trends in median rent levels, which are adjusted using proprietary listing data and Census Bureau statistics. While the firm acknowledges a skew toward luxury apartments in its data, adjustments ensure a comprehensive view of the rental market.

Charles Heimsath, president of Capitol Market Research, noted that while occupancy rates still indicate a balanced market, continued rent declines could empower tenants. His survey covered nearly 1,000 complexes and 237,000 apartment units across the Austin metropolitan area.

What Does This Mean for Tenants?

Austin’s falling rents offer tenants a potential advantage in negotiations, especially if the downward trend persists. For prospective renters, the current market may provide opportunities to secure more affordable housing in a city historically known for its rising living costs.