Monday Market Insight: Austin & DFW Rents Reach Parity

By: New Edge Commercial Real Estate

Market Overview

Apartment rents in Austin and Dallas-Fort Worth have now aligned, both averaging around $1,550 per month, marking the first time Austin has lost its long-standing rent premium over DFW.

Supply Expansion Drives Change

Austin’s multifamily inventory surged 27% over the past three years, adding 70,000+ units, compared to DFW’s 12.7% increase and 103,000 new units.

This rapid expansion has led to softer rent growth and heightened competition among landlords.

Rising Concessions and Price Adjustments

Roughly 65% of Austin properties are offering rent concessions, while some DFW suburbs extend 6–12 weeks of free rent.

Austin’s average rents are now 12% below 2022 peaks, reverting to early-2021 levels. Despite this, leasing momentum remains strong with 20,000 units absorbed in 2024 and a similar pace projected for 2025.

Affordability and Outlook

Lower rents have eased cost burdens and made Austin more competitive for relocation and workforce housing. Analysts anticipate rent recovery by 2026–2027 as supply stabilizes and incentives taper off.

Read the full CoStar report: https://product.costar.com/home/news/1370939436

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