Austin, Texas has experienced a dramatic shift in its rental market, with rents plummeting 22% from their peak in summer 2023 due to increased housing supply. Originally a desirable low-cost city, Austin's reputation began to change in 2021 when tech companies moved in, causing rents to surge. However, aggressive development policies and new housing construction have balanced the market, leading to a 16% year-over-year rent decrease by January 2024. As a result, landlords are now offering significant incentives to attract tenants amid high vacancy rates and increased inventory.
Nearly all apartments in Austin are doing some sort of special for move-ins, one agent told Bloomberg.
The housing shortage and cost-of-living crisis dominated the city's political races in recent years, Bloomberg added. The name of the game became supply.
Landlords have lost a lot of leverage, Bloomberg reported, as they struggle to fill their brand new apartments and offer big discounts to potential tenants.
Austin's median rent was $1,399 in January, according to Redfin. That's a 16% year-over-year decrease, marking the largest decline out of 44 major metropolitan areas.
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