Will Austin Apartment Rents Keep Dropping? Vacancy Hits New High in April 2025

The Austin-area apartment market has undergone major changes over the past several years, particularly in pricing and vacancy trends for two-bedroom units. In August 2022, the average rent for a two-bedroom apartment reached its peak at $1,726. Since then, however, rents have steadily declined. As of April 2025, the average rent has fallen to $1,431, representing a $295 drop, or a 17.1% decrease from the peak.

The decline in rental prices has occurred alongside a consistent rise in vacancy rates. In January 2017, vacancy in the Austin area stood at 8.49%, and it declined steadily until reaching a low of 3.96% in September 2021. This period of tightening supply coincided with strong rent growth, especially in 2021 and 2022. However, from that low point forward, vacancies began to rise again, indicating a loosening rental market.

By December 2023, vacancy had climbed back up to 9.14%, and it has continued increasing in 2024 and into 2025. As of April 2025, the vacancy rate reached 9.92%, the highest recorded figure in this dataset. This surge in vacancies has directly affected pricing power, placing downward pressure on rents across the region.

Looking back at rent data from 2017 through 2020, Austin-area rents rose steadily each year, even amid seasonal fluctuations. For example, in December 2017, the average two-bedroom rent was $1,230, while by December 2019, it had increased to $1,329. From there, the pace of growth accelerated, with rents climbing to $1,604 by December 2021. These increases coincided with rapidly declining vacancy rates and strong demand during the pandemic-era housing boom.

But as the market adjusted to new supply and shifting demand patterns in 2022 and 2023, vacancy began rising while rent growth slowed and then reversed. By mid-2023, rents began to flatten, and then fall, month after month. Despite small seasonal bumps, the overall trend has been consistent. Between August 2022 and April 2025, rent has declined by an average of roughly $10 per month every 90 days.

This data reflects broader market dynamics that point toward a softening rental environment in the Austin area. The combination of increased supply, reduced leasing velocity, and economic normalization appears to be shifting pricing power away from landlords. If the current trend of rising vacancy continues, additional rent reductions may follow as the market seeks balance.

What is the average rent for a two-bedroom apartment in Austin in April 2025?

As of April 2025, the average rent for a two-bedroom apartment in the Austin area is $1,431. This reflects a 17.1% decrease from the August 2022 peak of $1,726. The decline has been steady over the past two years, driven by rising vacancy and shifting market dynamics.

What is the current apartment vacancy rate in Austin?

The vacancy rate for Austin-area apartments reached 9.92% in April 2025, the highest level in recent history. Vacancy rates have been rising since hitting a low of 3.96% in September 2021, signaling an increase in available rental units and a more competitive environment for landlords.

Why are rents falling in Austin?

Rents in Austin have been falling due to a combination of rising vacancy rates, new rental supply entering the market, and reduced leasing activity. As more apartments become available and competition increases, landlords have responded by reducing prices to attract tenants. This trend has persisted since mid-2022 and continues into 2025.