Experts are linking the drop in rent prices in certain Texas markets to a decrease in migration and an increase in available properties.
According to Realtor.com data, Austin and San Antonio witnessed a 9% and 8% decline in rent prices respectively, along with Nashville, Tennessee.
During the lockdowns, many people flocked to Texas cities for better weather and a lower cost of living. This surge in demand initially caused rent prices to rise.
Now, due to an increased supply of rental properties and decreased demand, prices are falling. Texas is experiencing quicker rent decreases compared to other states, partly due to high home purchasing costs.
Although more rental housing could potentially reduce rents, the current trend doesn’t indicate a significant increase in affordable housing options.
Multifamily construction in Texas has slowed, so a substantial rise in rental stock or housing affordability isn’t expected anytime soon.