AUSTIN, Texas — A new study has found that rent prices throughout Austin have slowed down for the first time in 18 months.
The rental report for the month of October from Realtor.com has been released, and the data shows that rental growth slowed to 4.7% year over year, which is the slowest increase the U.S. has seen in 18 months.
Although the last 18 months in rent increases have slowed down, the rent increases from October 2019 skyrocketed by 23.5% for the average overall cost of rent. This has led the country to have an average cost of $1,734 a month.
These percentages come as tenants are still struggling to afford monthly rent while rent increases for the next 12 months are being released, according to the 2022 Fall Landlord and Renter Survey from Avail, part of Realtor.com's network.
“With soaring inflation and recession fears a huge concern for many consumers, finding affordable housing remains a priority for families. Our data indicates that we are finally starting to see a bit of relief from the double-digit pace of rent growth that we experienced during the height of the pandemic,” said Danielle Hale, chief economist at Realtor.com. “While it’s still a bit early to say that we’re officially on a downward trajectory for rent prices, the data shows a promising return toward normal seasonal slowdowns and suggests that the astronomical price gains of the past several years may be behind us.”
The rental market has seen a third consecutive month of single-digit percentage growth in rent, with the asking rent down $25 in October and $47 from the peak in July, in addition to the ninth consecutive month of slowing this year. But, the growth is still 1.5 times faster than it was in March 2020.
The survey found that 70.4% of landlords plan to raise the rent for at least one of their units within the next 12 months as 69.5% of renters are planning to move to a more affordable complex.
Although the Austin area saw an increase of 2% in overall rent costs within the last year, the capital of the Lone Star State didn't see the highest overall increase. The Chicago metropolitan area saw an increase of 23.7% in overall rent costs from 2021, leading them to an average of $2,032 every month compared to Austin's $1,703.
Boomtown is KVUE's series covering the explosive growth in Central Texas. For more Boomtown stories, head to KVUE.com/Boomtown.
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