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Rent prices dropping means more bargaining power for Austin renters

Austin saw a 7.2% decline in asking prices in May, which was one of the five biggest declines nationwide, according to housing experts.

AUSTIN, Texas — It's no secret that rent in Austin isn't cheap, but in the past year, there's been a slight shift in the market. 

Supply for rental units is up, meaning rent prices are down, allowing renters to gain the upper hand when it comes to asking prices.

According to Redfin, Austin saw a 7.2% decline in asking rent prices in May, which is considered of of the five biggest declines compared nationwide. The median asking price dropped to $1,559.

It's a trend that Emily Blair, executive director of Austin's Apartment Association, said will likely continue mainly due to new apartment buildings finally breaking ground.

It's also because of those extra units that Blair said rent has dropped. 

"When there's more supply that comes online, obviously those occupancy levels do go down and kind of trend with that. And Austin is no exception to that," Blair said. "We're projecting about 26,000 or more apartment units that are going to be delivered throughout the remainder of this year."

RELATED: Austin's rent prices have decreased by nearly 10% since last spring, data shows

The city of Austin has 750 construction permits active for new construction at multifamily projects scattered across the city. 

However, Austin remains an expensive place to live, and some worry how long it will remain this way.

An Austinite named Savannah moved to the city in 2004 and has been a renter ever since. She said she remembers when rent was $600 per month in Downtown Austin's West Campus area.

Currently, she rents a townhome for about $1,700 per month and has lived there for about eight years. Although she was looking to move to a new apartment in the summer, that plan got scrapped due to high rent in the city. 

"I've just kind of like, come to terms with the fact that things definitely are more expensive, and I'm probably not going to get any closer to the city," Savannah said.

But it's a possibility she's still holding onto. 

"I know times change, but I'm still like, holding on to like the dream that things may level out a bit," Savannah said.

RELATED: New report shows dramatic changes in Austin's rental market despite construction boom

But many people like Savannah are unaware that they can negotiate. 

Blair said it boils down to finding an apartment that is within your budget while also having a conversation with a leasing agent on where they can meet your need and price. 

"I think it's great to ask them what type of units do they have if they represent other properties as well, if they have any incentives, if there's any sort of security deposit," Blair said.

Blair said there's room for talks with property owners when it comes to renewal rates.

"For example, a realtor who's representing the lease agreement there, that might be an opportunity when you have an individual who's the property owner and the brokers there kind of as a representative," Blair said.

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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