Austin Leads Nation with Over 20% Rent Decline Amid Historic Construction Boom

Austin, Texas, has experienced the most significant rent decline among major U.S. cities, with median asking rents plummeting by as much as 22% from their peak in August 2023. This dramatic shift is primarily attributed to a massive apartment building boom that has flooded the market with new units, directly challenging arguments against housing development. The trend has led to a more tenant-favorable market, despite the Austin metro's continued population growth.

The city's rental market saw rents skyrocket during the COVID-19 pandemic as tens of thousands of new residents and major tech companies relocated to the area. This surge in demand, coupled with a limited housing supply, pushed rents up by 25% at one point. However, a concerted effort in development and ambitious housing policies, including scaling back height rules and ending parking mandates, spurred an unprecedented construction wave.

Developers delivered nearly 50,000 rental units in Austin during 2023 and 2024, representing a 14% increase in supply. This influx created an oversupply, leading to rising vacancy rates and intense competition among landlords. Many properties are now offering significant incentives, such as two to three months of free rent, to attract and retain tenants.

The substantial increase in housing supply appears to directly counter the "Not In My Backyard" (NIMBY) arguments often made against new construction. As one social media user, Swann Marcus, observed, "What I love about this chart is how blatantly obvious it is that NIMBYs are just wrong. Given the Austin metro’s population growth, Austin being number 1 in rent decline is an insane own on every left-NIMBY talking point." This perspective highlights how increased supply has eased housing costs despite ongoing population expansion.

While Austin's rents remain above pre-pandemic levels, the recent declines have made the city more affordable for renters. According to Realtor.com, Austin became the country's most affordable rental market in September 2025, with families needing to spend only 16.5% of their monthly paycheck on rent. Experts indicate that while the construction pace is slowing, the current oversupply ensures a tenant-friendly market for the foreseeable future.