Austin, Texas, December 18, 2025
Austin’s rental market is stabilizing with minimal rent increases expected until 2027. A construction boom has significantly increased the number of available rental units, leading to a decrease in median asking rent. Analysts predict net absorption rates will outpace new supply, hinting at a gradual return to a balanced market and modest rent growth starting in 2026.
Austin’s Rental Market Stabilizes Amid Construction Boom
Austin, Texas – Austin’s rental market is expected to remain relatively stable, with minimal rent increases anticipated until 2027. This trend follows a significant construction surge that has led to a substantial increase in available rental units.
Current Market Conditions
As of mid-2025, Austin’s multifamily market is experiencing a period of stabilization. Analysts forecast that net absorption—the rate at which new units are rented—will outpace new supply, indicating a potential for rent stabilization and modest growth starting in 2026.
Impact of Construction Boom
Between 2021 and 2023, Austin saw a significant increase in apartment construction, with nearly 25,000 new units completed over a 12-month period through the second quarter of 2024. This influx equated to 7.9% of the existing supply, with an additional 38,000 units under construction, representing 12.2% of the existing supply.
Rent Trends and Forecasts
In May 2025, Austin’s median asking rent decreased by 8.8% year-over-year, reaching $1,385—the lowest level since February 2021. This decline is attributed to the oversupply of rental units.
Looking ahead, forecasts suggest that rent growth will remain modest, with an average annual effective rent increase of 1.6% over the next three years, returning rents to pre-pandemic trends.
Conclusion
Austin’s rental market is currently in a phase of stabilization following a period of rapid construction. While rent increases are expected to be minimal until 2027, the market is projected to gradually return to a more balanced state as the absorption of new units continues.
Frequently Asked Questions (FAQ)
What is the current state of Austin’s rental market?
Austin’s rental market is stabilizing, with minimal rent increases expected until 2027 due to a significant construction surge leading to an oversupply of rental units.
How many new rental units have been added to Austin’s market recently?
Between 2021 and 2023, nearly 25,000 new apartment units were completed, with an additional 38,000 units under construction as of mid-2024.
What are the current rent trends in Austin?
In May 2025, Austin’s median asking rent decreased by 8.8% year-over-year, reaching $1,385—the lowest level since February 2021.
When is rent growth expected to resume in Austin?
Forecasts suggest that rent growth will remain modest, with an average annual effective rent increase of 1.6% over the next three years, returning rents to pre-pandemic trends.
Key Features of Austin’s Rental Market
| Feature | Details |
|---|---|
| Current Rent Trends | Median asking rent decreased by 8.8% year-over-year in May 2025, reaching $1,385—the lowest level since February 2021. |
| Construction Surge | Between 2021 and 2023, nearly 25,000 new apartment units were completed, with an additional 38,000 units under construction as of mid-2024. |
| Future Rent Growth | Forecasts suggest an average annual effective rent increase of 1.6% over the next three years, returning rents to pre-pandemic trends. |
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Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
