Austin, October 9, 2025

News Summary

Austin’s average rent for a one-bedroom home has dropped to just over $1,500, reflecting a significant trend of decreasing rental prices across the city. This decline is influenced by increased housing developments and a cooling demand, leading to a 9.6% year-over-year decrease in median asking rents. Nearby cities like Kyle and Leander remain high at $1,440, while San Marcos and Pflugerville offer lower rates. The city’s robust construction activity underscores the evolving nature of the Austin housing market, providing renters with more negotiating power.

Austin Experiences Major Rent Drop as Housing Development Surges

Austin’s average rent for a one-bedroom home has decreased significantly, now just over $1,500, according to a recent report by Zumper. This decline in rental prices reflects a broader trend throughout the city, with several surrounding areas also experiencing significant changes in pricing.

Kyle, Texas, ranks as the second most expensive area for rents at $1,440, followed closely by Leander, which also averages $1,440 for a one-bedroom unit. In comparison, Cedar Park’s average rent sits at $1,300, followed by Round Rock at $1,290, and Georgetown at $1,280. Notably, San Marcos and Pflugerville are the only cities in the Austin metro area with average rents below the Texas median, which is around $1,200. San Marcos has an average rent of $1,130, and Pflugerville stands at $1,110.

According to a Redfin report, Austin’s median asking rent has dropped by 9.6% year-over-year to $1,399, marking the largest decline among major U.S. metropolitan areas. This comes after the peak rent prices reached during the pandemic, showing a decrease of $400. This downward trend has emerged since 2023, attributed to a cooling housing demand and a surge in new apartment construction within the city.

Austin has overtaken all other cities in the U.S. regarding new apartment construction, contributing to the abundance of rental inventory. With mortgage rates hovering around 7%, renting has become a more economically viable option for many residents. The average hourly wage for Austin renters is about $33.25, which translates to approximately $70,000 a year.

On a national scale, the median asking rent for studio and one-bedroom apartments has seen a slight downturn, decreasing by 1.2% and 1.5%, respectively. Other cities also reflecting significant rent drops include Minneapolis at -7.3%, Portland at -5.3%, San Diego at -5.2%, and Raleigh at -5.2%. In contrast, cities like Cincinnati, Pittsburgh, and Baltimore have experienced rent price increases of 8.7%, 7.5%, and 5.9%, respectively.

To facilitate rapid apartment construction, the city of Austin has implemented measures to ease zoning laws and reduce parking requirements. However, builders are currently evaluating the potential impacts of tariffs on their sector, when considering decreases in rental prices. The increase in available rental inventory has provided renters with enhanced negotiating power, resulting in landlords offering discounted rates.

This scenario in Austin underscores the importance of addressing inventory shortages as a strategy in combating rising housing prices. The combination of rising construction and a shift in rental dynamics highlights the evolving nature of the housing market in Austin.

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Additional Resources

• KVUE News
• Wikipedia: Rent control in the United States
• KVUE Video
• Google Search: Austin rental market 2025
• Spectrum Local News
• Google Scholar: Austin housing development
• Realtor.com
• Encyclopedia Britannica: Texas housing market
• Bloomberg News
• Google News: Austin real estate news

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