AUSTIN, Texas —
According to the research group Apartment List, rent prices for new leases in Austin are decreasing.
In July, the average rent in Austin for a new lease dropped $2, from $1,636 to $1,634 (-0.1%). That's compared to a 0.3% increase nationwide.
According to the Apartment List study, rent is down by $85 year-over-year, from $1,719 to $1,634 (-5%). That's compared to this time last year, when it was up by nearly 15%.
This is the first time prices have dipped since early in the COVID-19 pandemic, but they still have a ways to go before they get to pre-pandemic numbers.
"If we compare where they are to three years ago, they're still up 20%. You remember, 2021 and 2022 were years where rent prices skyrocketed pretty much everywhere, where Austin was no exception," senior research associate Rob Warnock said. "So, right now, the kind of correction that we're seeing is not undoing the rent growth that took place earlier in the pandemic."
Apartment List said normally this time of year, rent prices are peaking. But because of sluggish demand and a strong incoming supply of new apartments, Austin is seeing a decrease.
"For renters out there, it's not like they're suddenly going to feel like the market is cheap. It's just the prices ... are going down modestly," Warnock said. "The one thing to keep in mind though that is good news here is that we've got a relatively strong economy right now."
While Apartment List's data doesn't include lease renewal prices, Warnock said people should be empowered to use the data about new lease prices to negotiate better rates when they look to re-sign their leases.
As the rent prices decrease and people's incomes continue to go in the right direction, it can help make the city more affordable.
Boomtown is KVUE's series covering the explosive growth in Central Texas. For more Boomtown stories, head to KVUE.com/Boomtown.