Tracking Austin’s Median Leased Prices: Market Trends from 2020 to 2024

Tracking Median Leased Prices in Austin:
A Detailed Look at Market Trends Over 36 Months

The real estate market in Austin, Texas, has been in the spotlight for several years due to rapid growth in both home sales and lease prices. One important metric that highlights the evolving nature of the market is the comparison of median leased prices over a 36-month period. By looking at these numbers, we can better understand how rental rates have changed and what this means for the future of Austin’s leasing market.

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The data shows that in recent years, Austin has experienced significant fluctuations in rental prices. For instance, in May 2008, the median leased price was 24% higher than it was in May 2005. This period of growth reflected the broader housing boom before the 2008 financial crisis. On the flip side, in August 2005, prices dropped by 2.33% compared to August 2002, marking a brief cooling period for the rental market.

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Fast forward to 2022, and the Austin rental market saw one of its largest surges. Median lease prices in September 2022 were 35.4% higher than those in September 2019. This rise in rent prices was fueled by increased demand for housing, as many people moved to Austin during the COVID-19 pandemic. With a growing population and limited housing supply, landlords were able to raise rents to unprecedented levels.

However, as we move into 2024, the market is showing signs of stabilization. The most recent data indicates that the median leased price is now at 0% growth when compared to three years prior. This flatlining suggests that the rapid increases we saw during the pandemic are beginning to slow. One potential reason for this could be rising interest rates, inflation, and broader economic uncertainty, all of which are impacting tenants’ ability to afford higher rents.

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The detailed year-over-year numbers further illustrate the evolution of the leasing market. In 2000, the average rent in Austin was around $1,106 per month. By 2019, this had increased to $1,703 per month. But it was in the years following the pandemic that we saw the most significant increases. In 2022, the average monthly rent surged to $2,229, an increase of 24.2% compared to 2020. This spike in rent prices was particularly notable as it reflected the high demand for rental properties and the limited availability of housing during this period.

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As of 2024, while the market appears to be stabilizing, the average rent remains high. In September 2024, the average monthly rent was $2,100, slightly down from the highs of $2,250 earlier in the year. This minor decrease indicates that while the leasing market is no longer experiencing the rapid growth seen in recent years, it still remains elevated compared to pre-pandemic levels.

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Looking at historical data, we can see how Austin’s leasing market has gone through cycles of growth and contraction. The early 2000s saw relatively modest growth in rental prices, with only minor fluctuations. But starting in the mid-2000s, rental prices began to rise steadily. After the financial crisis in 2008, there was a temporary cooling period, followed by more consistent growth into the 2010s.

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The most significant period of growth occurred between 2020 and 2022. As demand for housing in Austin soared, rental prices followed suit, reaching record highs. The plateau we are now seeing in 2024 may signal a return to more sustainable growth rates in the future, as the market adjusts to higher costs and evolving economic conditions.

In conclusion, the Austin leasing market has experienced rapid growth over the past few years, driven by high demand and limited supply. While 2022 saw some of the highest rent increases in recent history, the market in 2024 is showing signs of stabilizing. Renters can expect the market to remain competitive, but the days of rapid price hikes may be behind us for now​