RENT'S DUE

Austin rent prices increased nearly 10 percent from 2022, report finds

Zumper ranked Austin the No. 25 most expensive rental market in the United States.

Photo courtesy of TexasApartmentRentals.com

Apartment rent keeps going up in Texas, and in Austin the increase is nearly 10 percent more than last year, making it increasingly difficult to afford living in the city. That’s according to a new national rent report from online rental marketplace Zumper.

Despite rent increases showing a small slowdown month-over-month, overall prices are still on the high side from the previous year. For example, the average rent for a two-bedroom apartment in Austin is $2,070 now, in March of 2023, which is a one percent increase from the previous month, but a nearly 10 percent increase from 2022 at 8.4 percent. The average rent for a one-bedroom is $1,670, which is a mere .60 percent increase month-over-month, but a whopping 7.7 percent increase from last year.

The report looked at rental data from more than one million active listings in the top 100 cities in the United States to determine the rankings. Zumper ranked Austin the No. 25 most expensive rental market across the nation in February of 2023, up two places from the last report.

The report attributes these recent rental increase trends to the nation's rising inflation rate and unpredictable economy. Though unemployment is low (less than 3.4 percent), potential homebuyers are being sidelined with increasing interest rates. This is causing more competition among renters all over the country.

“Many markets continue to either normalize or correct following the steep increases in rent seen in 2021 [and 2022] in the zero interest rate [and] QE environment we went through,” said Zumper CEO Anthemos Georgiades in the report. “With interest rates expected to rise further in 2023, we anticipate continued deceleration in rent rises as new household formation freezes or is at least postponed.”

Much further down the list from Austin is San Antonio, coming in as the No. 66 most expensive rental market, which is a three-place increase from a previous report. Average rent for a one-bedroom apartment stayed relatively flat over the last month, at $1,160, yet is still 7.4 percent higher than it was last year. Two-bedroom apartments saw a smaller year-over-year increase at 4.4 percent, with the average rent price at $1,430.

Several cities in the DFW metro area also made the list, as well as Houston (No. 51) and El Paso (No. 95). Most notably, Irving (No. 34) is experiencing a nearly 15 percent year-over-year rent increase for both one- and two-bedroom apartments.

The nine total Texas cities that made the list include:

No. 25 – Austin
No. 34 – Irving
No. 36 – Dallas
No. 40 – Plano
No. 51 – Houston
No. 55 – Fort Worth
No. 66 – San Antonio
No. 67 – Arlington
No. 95 – El Paso

The full data from Zumper’s National Rent Report can be found at zumper.com.

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Editor's note: As 2024 comes to a close, we're looking back at the stories that defined Austin this year, including the red-hot topic of real estate. Austin's real estate market has seen some dramatic swings this year, but that's not all that happened. From Austin's suburbs continuing to boom to lavish estates hitting the market, here's a look at the hottest real estate headlines of 2024.

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3. Texas chef's Old West Austin home hits the market for $1.65 million. This home was originally built as a guest house in 1947, but has since been completely renovated with modern style.

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7. 6 hot Austin-area ZIP codes for first-time homebuyers in spring 2024. A local real estate expert shared his insight into the ZIP codes – from Kyle to Pflugerville – that received the most attention from first-time buyers.

8. South Austin 'entertainer's paradise' hits the market for $4 million. This 10,343-square-foot property comes with an expertly designed game room, a trendy golf simulator, an outdoor kitchen and lounge, a light up three-car carport, and much more.

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227 Seewald Road, Boerne, Lazy River Ranch The Lazy River Ranch is at 227 Seewald Rd., Boerne. Photo courtesy of Kuper Sotheby's

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