Are Rent Prices Really Dropping in Austin? Here’s the Truth

While Austin, Texas, may feel like a small town to me at times, it’s home to nearly 1 million residents, myself included. During the peak of the pandemic, Austin rents were skyrocketing as many people flocked to the state capital as part of the great pandemic migration. In fact, rents jumped nearly 30% between 2021 and 2023, a fact I was keenly aware of as a longtime Austin resident and renter.

But for the past two years, Austin rent prices have declined rather than continuing to skyrocket. While it’s not a city with the cheapest rent in America, it is astounding that such a popular, desirable city is actually getting more affordable for prospective renters.

While rents have continued to rise nationally year over year, rent in Austin has dropped for 19 consecutive months — and the trend is likely to continue.

Rents are dropping in Austin for a number of reasons. Though the number of residents boomed between 2020 and 2024 (by 11%, per Axios) and in 2022 alone, about 62,000 people moved to the Austin area, making it the fastest-growing large metro area in the U.S, according to the Census Bureau and the Austin Monitor. 

Rents skyrocketed as a result, but things have changed since then — there’s been an onslaught of post-pandemic construction as a result of statewide development-friendly legislation. Plus, there’s been a slowing job market. Migration to the city is slowing overall, so all in all, rental and overall real estate prices have dropped. (Though, according to the Texas Tribune, rent is still about 17% higher on average than pre-pandemic levels.) 

As a renter, it’s a welcome reprieve. I wouldn’t call Austin an affordable place to live, and I’ve had my own journey as a renter since moving here in 2016. My first apartment, off Southwest Parkway, was a newly built one-bedroom one-bathroom with views of the Greenbelt and a pool that went for under $1,500 a month. By 2021, I was paying $2,075 — a complete steal — for a one-bedroom, one-bathroom 1935 duplex in Clarksville, one of the city’s most charming neighborhoods. 

A one-bedroom in downtown typically goes for over $2,400 per month, as of Zumper’s July reporting, but it really depends on what part of town you live in and what your requirements are. Since May 2024, I have rented a one-bedroom ADU in Hyde Park, another one of the city’s most picturesque areas north of downtown, and pay $2,000 for it. I have a large yard — perfect for my dog — and share a laundry room with my front neighbors. So when I look at it, I see the fact that I now spend $500 more in rent than I did nine years ago, and don’t exactly feel like I’m lucky or feeling the difference. But I’m just one person — and other people I know have a different experience.

Interior designer and artist Chandler Hammons has had a different experience from mine and is glad to see the overall rent decrease. “We were happy in our last apartment for four years, but decided to move this month to jump on a great deal for a new place,” she says.

Hammons’ bet paid off. Her previous spot — a three-bedroom, two-bathroom — was $2,900 per month, and her new apartment is a two-bedroom, two-bathroom for $2,100 per month. While she did lose one bed, the amenities more than make up for it. 

“We have a pool, garage, gym, outdoor grills, trash pickup at the door, a dog-wash station, and a private dog park. We are excited to be downsizing and lowering our monthly expenses right now as we continue to save to buy a home. From my recent research, larger apartment complexes are running the biggest move-in specials. Just make sure to schedule your movers soon if you’re thinking about moving, because summer is their busy season,” she adds.

Mason Mathias, whose family has been in Austin for decades, spoke to the trends he’s seeing as he works in commercial business development at Key Title Group. “Our citywide average is $1.60 per square foot, and that’s down from $1.76 per square foot in Q1 of 2024. And our average occupancy is down as well, so apartments are really lowering their rents and trying to get people to come in,” he says. And construction isn’t stopping. “There are nearly 31,000 new apartment units under construction right now,” he adds.

While downtown has the most expensive units, areas within a 5- to 15-minute drive are plenty accessible and have much more reasonable rates. If you’re considering moving to Austin, now is a great time to be a renter.

Ultimately, like in most cities, it all comes down to ZIP code. Clarksville (78703), along with the rest of Old West Austin, as well as the neighborhoods surrounding Zilker Park and downtown (78701), with its high-end apartment and condo complexes, are the city’s most expensive places to live, with rates that typically stay consistent throughout the year. Basically, the closer to downtown and the newer the apartment, the pricier the rent. But building new units brings the prices of all units down, research finds again and again. 

If you’re looking for a bargain, check out some of the city’s most affordable neighborhoods, which include South Austin, North Austin, Riverside, West Campus, and Allandale, according to Rent.com. Even with overall rent decreases, Apartment List says Austin has the 56th-highest median rent among major U.S. cities.

My take? I’ve loved living in Austin. The people are warm, there are plenty of outdoor activities, live music, and new restaurants trickling in, and so I understand why it attracts so many new residents each year. I’m able to have a spacious home for a price that works within my budget, but it’s good to know that if I need to move, I might be able to do so without having to pay hundreds or thousands more at my next spot.