Are Rent Prices Dropping in Austin? Renting Now 34% Cheaper Than Buying

Are Rent Prices Dropping in Austin? Renting Now 34% Cheaper Than Buying

Are rent prices dropping in Austin? The data says yes. Rents have slipped from their 2023 peak while rental inventory has surged to record levels, creating the most renter-friendly conditions Austin has seen in years. This September, Austin recorded 7,543 active residential lease listings. That’s up from 7,138 in September 2024 and 5,809 in September 2023, marking the largest September inventory ever in the Austin housing market.

For renters, this means more options, more negotiating power, and a marketplace that is tilting back in their favor. At the same time, prices have softened. The median rent peaked in July 2023 at $2,299. By September 2025, the median had dropped to $2,150. That’s a 6.48% decline, or $149 per month less. Over a year-long lease, that decline equals nearly $1,800 in savings compared to what renters were paying at the peak. The story here is balance. For much of the past decade, Austin’s rental market has been marked by rapid rent escalation and tight inventory. Now, with more supply than ever, pricing pressure has eased, and renters are seeing relief for the first time in years.

Renting vs. Buying in Austin

For households debating whether to rent or buy, the numbers are even clearer. The median monthly rent of $2,150 compares to a median monthly ownership cost (PITI — principal, interest, taxes, insurance) of $3,236. That’s a $1,086 difference every month, making renting about 34% cheaper than buying right now. The current PITI-to-rent ratio sits at 1.51, meaning homeownership costs are 51% higher than renting. This affordability gap is consistent across much of the metro area. In Round Rock, renting saves households $1,144 per month. In Liberty Hill, the gap grows to $2,439. Even in central Austin ZIP codes like 78704, ownership costs are nearly 56% higher than renting.

What’s Driving Austin’s Rental Market Shift

Several forces explain this new reality. Developers have delivered thousands of new apartments, swelling supply just as high mortgage rates have kept would-be buyers on the sidelines. These renters stay in the lease pool longer, which increases competition for landlords. The result: historic rental inventory paired with slight price declines. This is not a collapse in rent prices — but rather a moderation after years of acceleration. With Austin’s long-term population growth still strong, rents are unlikely to fall dramatically. Instead, the market is correcting back toward historical averages, where renters have more choice and landlords must price competitively.

The Bottom Line

Austin renters are in the strongest position they’ve been in for more than a decade. Inventory has never been higher for September, rents are down 6.5% from peak, and renting remains 34% cheaper than buying when comparing monthly payments. For real estate professionals, this shift underscores the importance of guiding clients with data. Buyers must recognize that the cost of ownership remains elevated compared to renting, while renters should take advantage of increased selection and better negotiating leverage.

Click here to view the full Austin Renting vs Buying Analysis PDF.

Frequently Asked Questions

Are rent prices dropping in Austin?

Yes. Median rents peaked at $2,299 in July 2023 but have since fallen to $2,150 as of September 2025. That’s a 6.48% decrease, or $149 less per month. The combination of record-high inventory and slower absorption has created mild downward pressure on pricing.

Is it cheaper to rent or buy a house in Austin?

It is significantly cheaper to rent. The median rent of $2,150 compares to $3,236 for monthly homeownership costs (PITI). That’s a savings of $1,086 per month, making renting 34% more affordable than buying in today’s Austin real estate market.

Why is rental inventory so high in Austin?

A wave of new apartment completions and high mortgage rates are the primary drivers. More units have come online, while fewer renters are transitioning into ownership. This double impact has pushed rental inventory to the highest September level ever recorded.

Will rent prices keep falling in Austin?

Further declines are possible if new supply continues to outpace demand. However, Austin’s long-term growth trajectory and strong job market suggest rents are more likely to stabilize rather than collapse, with small year-over-year adjustments instead of steep drops.

How does Austin compare to other Texas metros for renting vs. buying?

Austin has one of the widest gaps between renting and buying in Texas. While San Antonio and Houston also show cheaper rents than ownership, Austin’s $1,086 monthly gap makes the difference far more dramatic, especially in suburban markets like Liberty Hill and Leander.​