Austin rents drop by more than 20% after home building surge

Austin’s policies to foster increased housing density have had a significant impact on a serious housing shortage.

Rents have declined in the Texas capital more than in any other area of the country. Rents are down 22% off the high-water mark reached in August 2023, according to Redfin. Median asking rent is $1,399 per month, down $400 in less than three years.

With surging demand during the Covid pandemic, rents jumped 25% in Austin—one of the biggest increases in the nation. Landlords now struggle to fill new apartment complexes and are trying to entice renters with major discounts.

The city enacted a few policies that spurred a multifamily housing construction boom. Among these were reducing delays in the permitting process, eased rules limiting the height of buildings within 540 feet of single-family homes, and an end to parking mandates.

Austin has also increased the supply of single-family homes by allowing developers to build as many as three units on lots previously restricted to one home, and reduced the minimum lot size to 1,800 sf from 5,750 sf.