Apartment prices in Austin have come down, experts say

Apartment prices have come down

Apartment prices have actually come down significantly in the last year, and there are plenty of bargains to be had. 7 On Your Side reporter John Krinjak has some expert advice.

AUSTIN, Texas - Apartment prices in the Austin area have come down significantly in the last year, and there are plenty of bargains to be had. Experts say it’s a renter’s market, meaning if your landlord is trying to raise your rent, you can likely negotiate it down.

Those lower prices are a welcome sight for Blaine Thomas, who lives in an apartment in Southwest Austin.

"My last place, exactly a year ago, I was paying $1,900 for a one bedroom, and now I'm closer in the range of $1,200-1,300," said Thomas. "An extra $400 a month is a pretty big deal in this economy."

"Right now we’re getting relief," said Austin Realtor Olivia Vale of Roots Residential Group.

Vale says, on average, rents are down about 10% compared to last year, essentially going back to 2021 levels. It’s a sight for sore eyes, after both rent and home prices skyrocketed in recent years. Experts say the reason for the big drop in prices is all the new apartment construction that’s happened lately.

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"During the pandemic, when we saw tons of people moving here by the tens of thousands, we kind of overcompensated a bit with the new development apartment complexes that were being built," said Vale.

The caveat, Vale says, is not all rental prices are dropping in the same way, in the same spots. Closer to downtown Austin, for example, rents are staying about the same.

So, if you’re looking for a new place, know this.

"Older homes in more established neighborhoods are more robust. And we're seeing more of a flat level there. But, definitely, if you're looking further outside of town or some of these big new complexes, we're seeing rent prices decrease this year," said Vale.

On the other hand, if you like your current place, but your landlord is trying to raise your rent, Vale says push back.

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"I think that almost unequivocally, across the board, no one should be raising their rent this year," said Vale. That’s a sign to get in touch with a realtor, have them run rental comps on what rental places have closed in your neighborhood in the last six months or so, and then armed with that information, you can go to your landlord and say, ‘look, you don't have justifiable basis to raise my rent’."

Blaine Thomas did just that.

"They were trying to raise it, but negotiated it down to what I was seeing in the market. Even at the same complex, the same square footage was going for almost $400 and $500 less," said Thomas.

Experts say you might want to lock those lower prices in now if you can, because they may not last.

"I’m hoping they stay low, but who knows," said Thomas.

Realtors say home prices have also come down, but those drops have not been as dramatic as on the rental side.