Austin Area Leased Median Price : 6.32% Decline Over Two Years as of September 2024

As of September 2024, the Austin real estate market is witnessing a notable decline in median leased prices. Recent data reveals that the median leased price in September 2024 stands at $2,150, representing a 6.32% decrease compared to the same month 24 months prior, in September 2022. This drop marks one of the most significant shifts in recent years, with the market moving away from its peak in July 2023, when the median leased price reached $2,300.

The 6.32% drop over the past 24 months is the largest decrease since August 2004 versus August 2002, when the market experienced a 6.98% decline. This change reflects the cyclical nature of Austin’s leasing market, which has seen various periods of both rapid growth and correction. For instance, in May 2022, the market experienced a peak with a 28.57% increase in leased prices compared to May 2020, illustrating the sharp contrast in market dynamics over the past few years.

Historical data further highlights the substantial growth the Austin leasing market has seen in the past decade. In January 2021, the median leased price was $1,800, while in January 2020, it was slightly lower at $1,700. These figures show how the market steadily appreciated in value over time. Going back even further, in January 2015, the median leased price was only $1,430, underscoring the strong market growth during this period. However, the recent 24-month decline points to a cooling phase in the market, with prices falling after years of rapid appreciation.

The current median leased price of $2,150, though down from its peak, still represents a higher baseline compared to pre-pandemic levels. However, the 6.32% decrease compared to two years ago signals that the market is cooling off significantly. This cooling trend could be attributed to various factors, such as increased inventory, changing demand, and broader economic conditions impacting both renters and landlords in the Austin area.

While the Austin leasing market has long been characterized by high demand and rising prices, the current data suggests that these dynamics may be shifting. The last time the market saw such a significant decline was in the early 2000s, reflecting the cyclical nature of real estate markets. As both renters and investors navigate these changes, it’s essential to stay informed about current trends and how they may impact leasing decisions moving forward.

With the ongoing shift in the market, the upcoming months will be critical in determining whether this downward​​