Market Intelligence
Austin Rental Market Report
Q4 2025 — Quarterly analysis of rents, vacancy rates, and leasing trends across the Austin metro area.
Average Rent by Unit Type
Q4 2025 asking rents across the Austin metropolitan area
| Unit Type | Avg. Rent Range | YoY Change | Trend |
|---|---|---|---|
| 1-Bedroom | $1,440 – $1,612 | -4.5% | |
| 2-Bedroom | $1,804 – $2,129 | -4.5% | |
| 3-Bedroom | $2,344 – $2,546 | -4.5% | |
| All Units | $1,439 – $1,530 | -4.5% |
Q4 2025 Market Insights
Lease Absorption
Approximately 3,000 units were absorbed during Q4 2025, outpacing the 2,700 new units delivered in the same period — a positive signal that demand is beginning to catch up with supply.
Construction Pipeline
There are still roughly 15,900 units under construction across the Austin metro, with 12,000–13,000 expected to deliver throughout 2026. Supply pressures remain, but the pace is slowing.
Concessions & Incentives
Nearly 75% of Class A apartment properties are currently offering concessions to attract tenants. Renters may find significant move-in specials and reduced rates compared to prior years.
Population Growth
The Austin metro area reached 2.6 million residents, growing at 1.8% year-over-year — the fastest rate among major U.S. metros — which continues to fuel long-term rental demand.
2026 Market Outlook
Looking ahead to 2026, the Austin rental market is showing early signs of stabilization. While rents remain below their August 2022 peak, the pace of decline is expected to moderate as new construction deliveries slow and population growth continues to drive demand.
For property owners, this represents an opportunity to lock in quality tenants at competitive rates while positioning for the expected market recovery. Investors should monitor absorption rates and concession trends as leading indicators of the market turning.
For tenants, the current market offers favorable conditions with lower rents and widespread concessions, particularly in Class A properties. Now is an excellent time to secure longer-term leases at attractive rates.
Data Sources
Data compiled from multiple industry sources including Matthews Real Estate Investment Services, Smart City Locating, Spyglass Realty, Rent.com, and Team Price Real Estate. Figures represent estimates and ranges based on available Q4 2025 reporting. Individual property performance may vary. This report is provided for informational purposes only and does not constitute investment advice.
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