Austin Rental Market Trends: Are Rent Prices Falling in 2025?

The Austin-Round Rock-Georgetown rental market is experiencing a shift in 2025, with rising vacancies and declining rent prices affecting both two-bedroom apartments and single-family rental homes. With data showing rental price adjustments across multifamily and single-family properties, this analysis explores how these trends impact renters and landlords alike.

Are Rent Prices Going Down in Austin? 

Recent data indicates that rent prices in the Austin metro area have been gradually decreasing since mid-2023. Two-bedroom apartments, which saw peak pricing in mid-2022 at $1,725 per month, have dropped by approximately 17% to $1,426 by February 2025. The decline reflects a growing vacancy rate, now at 9.85%, compared to 3.97% in September 2021, when competition for rentals was at an all-time high.

Residential lease properties, primarily single-family homes, show a similar trend. The median lease price in February 2025 is $2,100, down 4.1% from the previous year. Compared to its peak in August 2022, when median lease prices were at $2,568, the market has adjusted by roughly 18.2%. The decline in rental demand and an increase in available properties contribute to this shift, offering renters more negotiating power than in previous years.

Comparing Multifamily vs. Single-Family Rental Markets

Multifamily properties, such as apartments, are seeing faster adjustments in pricing and vacancy rates. The vacancy rate for two-bedroom apartments climbed from 3.97% in late 2021 to 9.85% in early 2025, illustrating a market correction following the post-pandemic rental surge. As a result, landlords are adjusting pricing strategies, with apartment rent reductions averaging 2% year-over-year.

In contrast, single-family rental properties maintain higher price stability but are not immune to market forces. The number of leased properties has decreased from 2,243 in February 2024 to 1,967 in February 2025, a 12.3% year-over-year decline. While rental price drops in single-family homes have been moderate compared to multifamily units, landlords in this segment are beginning to offer concessions such as lower security deposits or move-in incentives to attract tenants.

Market Outlook: What’s Next for Renters and Landlords?

The increase in available rental units and declining prices suggest that the market is moving toward a more tenant-friendly environment. Factors influencing this shift include new apartment constructions adding to supply, economic conditions affecting tenant affordability, and shifting migration patterns. Renters looking for new leases in 2025 will find more options and better negotiating leverage than in previous years.

For landlords, the rising vacancies pose challenges in maintaining occupancy rates, particularly for multifamily properties. Those renting single-family homes may still benefit from relatively stable pricing but should be prepared for longer listing times and potential rent concessions to secure tenants.

Frequently Asked Questions (FAQs)

1. Why are Austin rent prices going down? Austin rent prices are declining due to increased vacancy rates, more new apartment developments entering the market, and economic factors reducing tenant demand. The oversupply of rentals allows renters to negotiate lower prices.

2. Is it cheaper to rent an apartment or a single-family home in Austin? Apartments tend to be more affordable, with a median rent of $1,426 for a two-bedroom unit, whereas single-family homes average around $2,100 per month. However, single-family homes offer more space and amenities, making them preferable for larger households.

3. Will Austin rent prices continue to drop in 2025? While rent prices have declined, the extent of further reductions will depend on supply levels and economic conditions. If vacancy rates remain high, landlords may continue lowering rents or offering incentives to attract tenants.