Rent Prices Dropping in Austin – A Closer Look at the City’s Rental Market Trends
The rental market in Austin has been a hot topic for years, with its reputation as a booming tech hub and vibrant cultural center driving demand sky-high. But recent data from Team Price Real Estate, last revised on March 26, 2025, shows something surprising: rent prices in the City of Austin are dropping. This shift stands out when compared to the broader six-county Austin-Round Rock-Georgetown metro area, which includes Travis, Williamson, Bastrop, Hays, Caldwell, and Burnet counties. While the region as a whole is seeing changes, Austin itself is experiencing a noticeable decline in median leased prices, offering a fresh perspective on the city’s rental landscape.
Let’s start with the numbers for Austin. Back in 2022, the median leased price for residential properties in the city hit $2,350, reflecting a massive 17.5% jump from 2021’s $2,000. That surge wasn’t a fluke—it came during a period when Austin saw an influx of new residents, fueled by remote work trends and the city’s growing job market. Fast forward to 2023, and the median price stayed steady at $2,350, showing no year-over-year change. But by 2024, things started to shift. The median leased price dropped to $2,300, a 2.13% decrease from 2023. The decline continued into 2025, with the median price falling to $2,200 based on data through March 26, 2025—a 4.35% drop from 2024’s $2,300. This downward trend over two years marks a clear break from the rapid growth Austin renters had grown accustomed to.
Zooming in on monthly data, the drop becomes even more evident. In March 2023, Austin’s median leased price was $2,250. By March 2024, it fell to $2,200, a 2.2% year-over-year decrease. The slide kept going, with September 2024 showing a steep 4.3% month-over-month drop from $2,275 in June to $2,190. By March 2025, the median price settled at $2,150, down 2.3% from March 2024’s $2,200. These monthly dips highlight a consistent softening in Austin’s rental market, especially when compared to the broader metro area.
Now, let’s put this in context with the six-county region. The broader market includes bustling suburbs like Round Rock and Georgetown in Williamson County, growing towns like Kyle and San Marcos in Hays County, and quieter rural spots like Bastrop and Lockhart in Bastrop and Caldwell counties. Across this region, leasing activity remains strong—2024 saw 15,946 properties leased in Austin alone, part of a metro-wide trend of steady demand. However, the median price trends vary. While Austin’s median dropped from $2,350 in 2022 to $2,200 in 2025, suburban areas like Williamson County show more stability, with leased price-to-list ratios holding steady at 99.9% to 100.1% from March 2024 to March 2025. This suggests that while prices are softening in the city, demand in the suburbs is keeping prices closer to asking rates.
Looking back further, Austin’s rental market tells a story of long-term growth with recent adjustments. From 2000, when the median leased price was just $1,095, to 2025’s $2,200 (partial year), the city has seen a compound annual growth rate of 2.88%. That’s a solid increase over 25 years, but the recent drops stand out. For instance, the 13.04% plunge from 2001 ($1,150) to 2002 ($1,000) was the biggest historical drop, tied to the dot-com bust. The current decline—2.13% in 2024 and 4.35% in 2025—is milder but notable, especially after the 2020–2022 boom when prices soared by 9.59% in 2021 and 17.5% in 2022. The broader metro area mirrors this cooling, with year-over-year decreases like Bastrop’s slight dip to a 98.5% leased price-to-list ratio in March 2025, but Austin’s urban core is feeling it most acutely.
What about the volume of leases? In Austin, 2023 saw peaks like 3,223 leases in July, dropping to 1,929 in December—a typical seasonal pattern. In 2024, the peak hit 3,371 in July, with a low of 1,986 in December. By early 2025, January recorded 2,305 leases, a strong 18% year-over-year increase from 2024’s 1,953, though March 2025 dipped slightly to 2,120, down 1.3% from 2024’s 2,391. This shows that while prices are falling, people are still renting in Austin—just not at the premium rates of a few years ago. Across the six counties, leasing remains robust, with suburban areas like Cedar Park and Round Rock showing consistent activity, suggesting demand is spreading beyond the city limits.
The leased price-to-list price ratio offers another angle. In Austin, this ratio stayed close to 100%—99.97% in March 2023, 99.85% in March 2024, and 99.61% in March 2025. This means properties are leasing very near their asking prices, with little room for negotiation. Compare that to nearby cities: San Marcos in Hays County hit 101.2% in June 2024, showing some premiums, while Bastrop dropped to 98.5% in March 2025, hinting at more flexibility. Austin’s tight ratio suggests a balanced market, but the falling median prices indicate that landlords are adjusting their asking rates downward to keep units filled.
Breaking it down by zip code within Austin, the declines vary. In 78704, a trendy South Austin area, the median isn’t specified, but the leased price-to-list ratio went from 99.2% in March 2024 to 100.2% in March 2025, showing stability despite metro-wide drops. In 78701 (downtown), the ratio dipped to 98.0% in March 2025 from 98.7% in 2024, suggesting slight softening in the urban core. Meanwhile, 78753 in North Austin held steady at 99.7% in March 2025, down from 100.0% in 2024. These micro-trends show that while Austin’s rent drops are city-wide, some areas are more resilient than others.
So, how does Austin stack up to the six-county metro area? The broader region saw similar cooling, with Travis County (home to Austin) driving much of the volume—15,946 leases in 2024 alone. But suburban counties like Williamson and Hays maintain higher leased price-to-list ratios, often at or above 100%, while rural Burnet County (e.g., Marble Falls) dipped to 99.3% in March 2025. Austin’s median price drop from $2,300 in 2024 to $2,200 in 2025 outpaces some rural areas like Lockhart, which held steady with ratios around 99.7% to 100.7%. This suggests that the city, as the metro’s economic heart, is more sensitive to market shifts, while outlying areas buffer the decline.
In the end, the data paints a clear picture: rent prices in Austin are dropping, with a 2.13% decline in 2024 and a 4.35% fall in 2025 so far. That’s a shift from the heady days of 2022’s $2,350 median, bringing the city closer to its pre-boom levels. The broader six-county area shows a similar cooling trend, but Austin’s urban market stands out for its sharper adjustment. With leasing activity still strong and ratios near 100%, the market isn’t crashing—it’s recalibrating. For renters in Austin, that could mean a bit more breathing room as the city’s rental landscape evolves.
Q1: Why are rent prices dropping in Austin in 2025?
A: Based on data through March 26, 2025, rent prices in Austin are dropping due to a market correction following the 2020–2022 boom, when median prices jumped 17.5% in 2022 to $2,350. The median fell to $2,300 in 2024 (a 2.13% drop) and $2,200 in 2025 (a 4.35% drop), possibly due to increased housing supply, slower migration, or economic factors like higher interest rates. Leasing activity remains strong, with 2,120 properties leased in March 2025, suggesting demand persists but at lower price points.
Q2: How much have rent prices dropped in Austin recently?
A: In Austin, the median leased price dropped from $2,350 in 2022 to $2,300 in 2024, a 2.13% decrease. By March 2025, it fell further to $2,200, a 4.35% drop from 2024’s $2,300. Monthly data shows a 2.2% year-over-year decline from March 2023 ($2,250) to March 2024 ($2,200), and a 2.3% drop to March 2025 ($2,150), reflecting a consistent downward trend.
Q3: Are rent prices dropping everywhere around Austin?
A: Rent prices are softening across the six-county Austin-Round Rock-Georgetown metro area, but Austin’s drops are more pronounced. The city’s median fell 4.35% from 2024 to 2025, while suburban areas like Williamson County (e.g., Round Rock) maintain leased price-to-list ratios near 100%, showing stability. Rural Bastrop saw a dip to 98.5% in March 2025, and Burnet’s Marble Falls hit 99.3%, indicating milder declines outside the urban core.
Additional Resources :
Rent Appreciation Report
Market Cycle Lease
