Austin Rents Are Going Down

Rents in the Austin-Round Rock-San Marcos metro continue to move in a renter-friendly direction just as 2025 winds down.

The Realtor.com® November 2025 Rental Report shows that falling asking rents are offering some relief after years of pandemic-era pressure, even as affordability remains a challenge for lower-wage households.

This mix of easing prices and lingering strain defines Austin’s rental market heading into 2026.

Austin rents slide sharply, but affordability is still tight

The popular Texas metro posted one of the steepest year-over-year rent declines among the nation’s largest metros. Median asking Austin rent for 0- to 2-bedroom units fell 6.6% from last November, coming in at a average of $1,388 — a clear cooling off period after years of rapid growth.

Despite that drop, the typical rent remains difficult for households earning at the bottom of the pay scale. With Texas still defaulting to the federal minimum wage of $7.25 an hour, two minimum-wage earners working full time would each need to log about 77 hours per week to afford the median Austin-area rental while keeping housing costs at 30% of income. That workload underscores how far rent levels have climbed relative to wages, even in a market now trending downward.

The improvement is real, but it’s relative. Compared with 2024, required hours have eased, reflecting falling rents rather than rising wages. Austin’s experience mirrors a broader Sun Belt reset, where supply growth and softer demand are finally translating into lower asking rents, but not yet into true affordability for minimum-wage workers. The shift is increasingly visible across Austin, Texas, where new listings and longer days on market are giving renters more options.

The national rental market continues its long correction

Austin’s decline fits squarely within a national story of easing rents. Across the 50 largest U.S. metros, the median asking rent for 0- to 2-bedroom units fell to $1,693 in November, down 1% from a year earlier. That marks the 28th straight month of year-over-year declines, a notable stretch of relief following the sharp run-up of 2021 and 2022.

The slowdown has been broad-based. Studio rents are down just 0.4% year over year, while 1-bedroom and 2-bedroom units posted slightly steeper declines of about 1%. Economists note that studios tend to react faster to shifts in demand, so their near-flat performance may hint at stabilizing renter interest, even as larger units continue to soften.

Still, context matters. National rents remain 17.2% higher than they were in November 2019, before the pandemic disrupted housing markets nationwide. That gap explains why affordability remains the central theme of the 2025 rental market, even with falling prices. For many households navigating Austin rentals, today’s lower asking rents still represent historically elevated costs.

Minimum-wage analysis in the report highlights the challenge. Only five of the 50 largest metros currently allow two minimum-wage workers to afford the median rent without overtime. Most markets, including Austin, remain far outside that threshold. Some relief is coming in places with scheduled minimum-wage hikes in 2026, but Texas is not among them.

Economists emphasize that statutory minimum wages don’t always reflect real-world pay, noting that entry-level wages in many markets run higher. Even so, the comparison illustrates how rents, though falling, continue to outpace wage growth for lower-income households nationwide.

Renting still cheaper than buying

Even with rents easing in Austin and across the country, renting remains the more affordable monthly option compared with buying a home. Nationally, the median rent of $1,693 in November was well below the typical monthly mortgage payment of about $2,040. That comparison reflects the broader rent vs buy dynamic shaping housing decisions late in 2025.

That said, the divide between renting and buying is narrowing. Lower mortgage rates have started to make homeownership more attainable for some households, especially those with stable incomes and savings for a down payment. Joel Berner, senior economist at Realtor.com®, notes that rents are still correcting from the dramatic surge of 2021 and 2022, which is a key reason renting remains cheaper today.

For Austin renters, the takeaway is balance. Falling rents provide near-term relief and flexibility, while softer prices and improved financing conditions may gradually reopen the door to buying for those on firmer financial footing.

This article was produced with editorial input from Dina Sartore-Bodo and Gabriella Iannetta.