Median Prices Fall Back to Early 2022 Levels

In recent years, the Austin area leasing market has seen substantial fluctuations in median leased prices. The data reveals that between 2022 and 2024, the market has experienced peaks and subsequent corrections, providing valuable insights into rental trends for both property owners and tenants.

At the start of 2022, the median leased price in the Austin area was $2,100 in January. This price steadily increased throughout the year, reaching its highest point during the summer. By August 2022, the median leased price had climbed to $2,300, reflecting a robust demand for rental properties. This upward trend continued into the fall months, with the median leased price remaining elevated at $2,295 in September and hovering around that mark until the end of the year. The average for 2022 stood at $2,229, with a median of $2,231, underscoring a strong rental market.

The momentum carried over into 2023, with January starting at $2,200 and steadily increasing again through the summer. By July, the median leased price hit $2,300, matching the peak levels of 2022. However, as the year progressed, a slight cooling began to take place. By September 2023, the median price had decreased to $2,200, signaling a possible shift in market dynamics. The average median leased price for 2023 came in at $2,237, indicating stability but with signs of softening by the year’s end.
In 2024, the leasing market saw a more noticeable correction. Starting the year at $2,195, the median leased price fluctuated slightly but remained around this level for the first few months. By mid-year, prices began to decline, falling to $2,150 in September 2024. This drop brought the median leased price back to levels last seen in February 2022, marking a significant cooling in the market after two years of price increases.

The data suggests that the Austin leasing market has returned to a more balanced state. While 2022 and 2023 saw substantial growth in rental prices, the correction in 2024 indicates that demand may have softened or that supply has increased, allowing prices to stabilize. The return to 2022 price levels could provide relief for renters, while landlords may need to reassess their pricing strategies moving forward.

For both tenants and property owners, understanding these market trends is essential. Tenants may find more favorable conditions as the market stabilizes, while property owners must navigate a more competitive landscape. As the Austin area continues to evolve, these data points offer critical insights into where the leasing market stands and where it may be headed in the near future.