Austin rental market cools, latest leasing data shows

More landlords are also incentivizing renters with shorter lease terms, lower deposits, greater pet policy flexibility and even weeks of reduced rent to give these units a competitive edge, Wuensch said.

“There is—in certain areas—excess inventory, which is creating competition among landlords,” Wuensch said. “Depending on their location, the demand can be strong.”

By the numbers

The Central Texas Housing Report includes year-over-year leasing data for single-family homes, condominiums and townhomes in Austin.

In February, year over year:

• 1,874 closed leases, down 7.8%
• $2,400 median rent, down 2%
• 947 new lease listings, down 5%

• 892 closed leases, down 5.7%
• $2,450 median rent, no change
• 1,102 new lease listings, down 6.2%

• 1,002 closed leases, down 4.2%
• $2,450 median rent, down 1.8%
• 1,505 new lease listings, up 7.3%

• 1,101 closed leases, down 5.2%
• $2,500 median rent, no change
• 1,853 new lease listings, down 1.9%

New apartment construction could slow down over the next year or so, Wuensch said, as many developers who started building complexes in 2023 and 2024 have faced financial challenges.

“Rental supply might tighten again in those particular facets if you’re looking for a condo or an apartment,” Wuensch said. “It could possibly drive rents back up in late 2026.”

Single-family rental rates could also potentially drop at the end of this year, which could become a buying opportunity for renters, Wuensch said.

“Home buying can become more accessible, so the rental demand may dip slightly,” Wuensch said. “But, with Austin's strong population growth, we're likely to keep pressure on the market on either side.”