Austin Lease Market Sees Record Inventory Growth as Expired Listings Shift to Rentals
The Austin residential lease market has seen a significant increase in active lease listings over the past three years, marking a sharp contrast to the historically tight rental conditions that defined the early 2020s. Recent data from the Austin Area MLS reveals that active lease inventory has not only surpassed pre-pandemic levels but has climbed to record highs in 2025, reshaping the rental landscape for both tenants and property owners across the region.
In June 2025, there were 7,057 active lease listings across the Austin MLS. This represents a 6.2 percent increase from June 2024, when 6,643 listings were available, and a 36.3 percent increase compared to June 2023, which recorded 5,176 listings. Over a three-year period, active lease inventory has nearly tripled, rising from just 2,478 listings in June 2022 to over 7,000 today. This upward trend has been consistent throughout the year, with each month of 2025 reporting higher lease inventory than the same month in the previous year.
The growth in lease inventory reflects broader market conditions in Austin, where affordability challenges, rising mortgage rates, and changing buyer behavior have contributed to increased rental supply. One of the key drivers behind this surge is the growing number of homeowners who attempted to sell their properties but were unsuccessful. As the number of expired and withdrawn residential listings has increased, many of these owners have opted to lease their homes rather than leave them vacant or continue reducing the asking price. In many cases, these owners plan to “try again” the following year when they hope market conditions will be more favorable for a sale.
This trend is particularly evident when examining the sharp rise in lease listings starting in 2023. For example, the number of active lease listings in May 2023 was 4,664, nearly doubling from 2,147 in May 2022. By May 2024, that figure had grown to 6,070, and by May 2025, it reached 6,323. A similar pattern holds across nearly every month of the year, underscoring the sustained growth in rental inventory.
Historically, Austin’s lease market remained relatively stable from 2015 through 2019, with active listings ranging between 2,000 and 3,400 depending on the month. Even during the initial stages of the pandemic in 2020, lease inventory remained within this range, fluctuating slightly but showing no major departures from historical norms. The sharpest inventory decline occurred in 2021, as the market experienced record-low supply due to increased demand, population growth, and limited for-sale housing options. At the low point in May 2021, there were only 1,620 active lease listings, less than half of typical pre-pandemic levels.
The turning point came in 2023 as Austin’s real estate market began to cool. Rising interest rates made homeownership less attainable for many, while investors added rental inventory through newly constructed homes and multifamily developments. At the same time, the number of homes listed for sale but failing to sell increased significantly, with many owners choosing to lease those properties in the interim. These factors combined to create the most substantial growth in lease inventory in over a decade.
Beyond owner behavior, new construction has played a role in the expansion of rental inventory. Build-to-rent communities and completed multifamily developments have added hundreds of units to the market, particularly in suburban areas surrounding Austin. This additional supply, combined with lower demand from tenants due to slowing population growth and affordability constraints, has pushed lease inventory to new highs.
For renters, the rise in available properties presents greater choice and potentially more negotiating power. With more options on the market, tenants face less competition for homes, while landlords may need to adjust pricing or offer incentives to attract qualified tenants. For property owners, particularly those with recently acquired or newly constructed rental properties, the increase in inventory raises the risk of extended vacancies and softening lease rates, requiring careful market analysis and competitive positioning.
Looking ahead, it is likely that lease inventory will remain elevated throughout 2025, driven by continued affordability challenges, cautious buyer sentiment, and an ongoing wave of homeowners transitioning from sales to leasing after unsuccessful listing attempts. As the market adjusts, both tenants and landlords will need to adapt to a more competitive and dynamic rental environment across the Austin area.
The data shows that the Austin lease market has shifted significantly from the extreme supply shortages seen just a few years ago. With inventory levels now surpassing previous highs and showing no signs of slowing, understanding these trends is essential for anyone navigating the Austin rental market in 2025.
Frequently Asked Questions About Austin Lease Market Trends
What is causing the sharp increase in Austin lease listings?
The primary drivers behind the rise in lease listings include a surge in expired and withdrawn for-sale listings, new construction completions, and affordability challenges keeping more people in the rental market. Many homeowners who attempted to sell their properties without success have opted to lease them, contributing to the higher inventory levels. Additionally, build-to-rent developments and multifamily projects have expanded the rental supply across the region.
How does the current lease inventory compare to previous years?
In June 2025, active lease listings reached 7,057, a 6.2 percent increase from June 2024 and a 36.3 percent increase from June 2023. Compared to June 2022, when there were just 2,478 listings, inventory has nearly tripled. This consistent upward trend is reflected across all months of the year, indicating sustained growth in the rental market.
Are lease prices in Austin expected to decrease with more inventory?
While increased inventory generally leads to greater competition and can put downward pressure on lease prices, rental rates do not always adjust immediately. In Austin, lease prices have shown signs of softening, but the full impact of elevated inventory depends on tenant demand, broader economic conditions, and the pace of new listings entering the market.
How has new construction affected lease availability?
New construction, particularly build-to-rent communities and multifamily developments, has significantly contributed to the rise in lease inventory. Many of these properties were planned during the peak demand years and are now coming to market, adding hundreds of rental units, especially in the suburbs. This additional supply is a key factor in the growing number of active lease listings.
Why are so many homes that failed to sell being leased instead?
Many homeowners prefer to lease their properties rather than continue lowering the price or leaving them vacant after a failed sale. With the market correction and higher interest rates reducing buyer activity, leasing offers owners a way to generate income while waiting for potentially more favorable selling conditions in the future. This trend has been a major contributor to the increase in active lease listings across the Austin area.
