The 2025 Apartment Market Outlook for Austin: What It Means for Incoming Employees
Austin’s rental market in 2025 is a renter’s dream. With rents dropping 17.44% since their 2022 peak and vacancy rates climbing to 15.2%, tenants have more choices and negotiating power than ever before. Over 31,000 new apartment units were delivered in the past year, and another 16,800 are expected in 2025. High-end developments and suburban growth have reshaped the market, offering options for every budget and lifestyle.
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For companies, this housing surplus is a win, making Austin an attractive relocation destination with lower costs for employees and improved hiring outcomes. Relocating? Services like Taco Street Locating simplify the process by curating options tailored to your needs.
Austin’s apartment market is continuing its upward trajectory in 2025, though the pace has slowed compared to the record-breaking numbers of 2024. This year, the city is on track to add 16,800 new units, following the massive delivery of 30,953 units the previous year. To put this in perspective, Carl Whitaker, chief economist at RealPage, explains:
"To put that number into context, that means for every 100 apartment units that existed in the area at the start of 2024, another 10 were delivered in the past 12 months".
The construction pipeline remains busy, with over 20,575 units currently under construction as of early 2025. Leading the charge, the Mueller district has 2,300 housing projects underway, followed by the Domain area, which is adding 1,950 units.
High-end developments like 415 Colorado are also making waves, adding more premium Class-A units to the market. However, the construction boom appears to be cooling off. New construction starts fell by 66% in 2024, marking a ten-year low, and unit completions are expected to drop by 60% in 2025. This suggests the market may be adjusting after a period of rapid growth.
These changes in supply have brought noticeable shifts in rent trends and overall market conditions.
The surge in new apartments has reshaped Austin’s rental market, creating a more tenant-friendly environment. Rent prices have been steadily declining, with the average rent now sitting at $1,461, marking the seventh consecutive quarter of decreases.
The numbers tell the story. Rents for two-bedroom apartments have dropped by 17%, from a peak of $1,725 in mid-2022 to $1,426 in February 2025. Vacancy rates have also risen significantly, climbing from 3.97% in September 2021 to 9.85% in early 2025.
Looking ahead, CoStar predicts further rent reductions throughout 2025. Rental rates are expected to decline by 4.3% in the first quarter and finish the year down by 1.4%, with the average asking rent projected to reach $1,557 by the end of the year. Israel Linares, a senior market analyst at CoStar, explains the impact of this shift:
"As there are more options available to renters, owners have had to adapt to that new environment, and have had to remain more competitive, and have had to lower average asking rents".
Single-family rental homes are also seeing price adjustments, with median lease prices dropping to $2,100 in February 2025, down 4.1% from the previous year. However, multifamily properties are experiencing faster changes in both pricing and vacancy rates compared to single-family homes.
Beyond just lower rents, landlords are offering more perks to attract tenants. These include reduced security deposits, free parking, and move-in specials. While vacancy rates remain elevated, apartment occupancy has risen to 93.8% as of May 2025, showing that property owners are working hard to fill their units.
As Austin’s rental market adjusts, suburban areas are becoming increasingly attractive. Many new residents are shifting their focus to the suburbs, drawn by a mix of affordability, amenities, and proximity to employment hubs. These areas are expected to grow faster and may even see rent increases sooner than urban neighborhoods.
East Riverside is emerging as a budget-friendly urban option near downtown. In 2024, the average home price here was $439,458, making it an appealing choice for renters who want city access without paying downtown prices.
The North Austin Tech Corridor, which includes areas around Parmer Lane and Wells Branch, is popular with tech workers. With an average home price of $448,441 in 2024, the area offers new housing developments, family-friendly amenities, and easy access to major job centers.
Pflugerville is another hotspot, particularly in its southern neighborhoods bordering Austin. Offering affordability and strong school districts, the suburb had an average home price of $430,032 in 2024.
Round Rock continues to attract families, boasting top-rated schools and a thriving tech industry. The average home price here was $480,949 in 2024, reflecting its appeal as a family-oriented community with excellent job opportunities.
| Neighborhood | Average Price (2024) | Key Attractions |
|---|---|---|
| East Riverside | $439,458 | Urban hub, downtown proximity |
| North Austin Tech Corridor | $448,441 | Tech jobs, family amenities |
| Pflugerville | $430,032 | Affordability, good schools |
| Round Rock | $480,949 | Top schools, tech industry |
In addition, South Austin is gaining traction for its charm and relatively affordable housing compared to central Austin. This area offers a mix of urban conveniences and a close-knit community feel, making it especially appealing to young professionals and families.
With such a variety of options, Austin’s growing suburban landscape provides something for everyone, whether it’s affordability, proximity to work, or family-friendly amenities. For those relocating to the area, the challenge isn’t finding a home – it’s deciding which of these appealing neighborhoods best fits their needs.
The rental market in 2025 is shaping up to be a renter’s market, with vacancy rates climbing above 5% due to a surge in new construction. While this abundance of options might sound like a dream, it can actually make the decision-making process overwhelming, especially for those relocating to Austin. Newcomers face the challenge of sorting through a dizzying array of choices, from sleek downtown high-rises to sprawling suburban communities.
This surplus of options is particularly tricky for relocating employees who are unfamiliar with Austin’s neighborhoods. They need to weigh factors like cost, amenities, and location – all while trying to make a well-informed decision. To tackle this, it’s crucial to start with a focused approach, beginning with identifying the right neighborhood and setting a realistic budget.
When faced with an overwhelming number of choices, having a clear plan can make all the difference. For most people, location is the top priority, especially for those settling into a new city. Commute times, neighborhood vibes, and access to conveniences like grocery stores or parks can greatly influence daily life.
Budgeting is another key consideration, and it goes beyond just monthly rent. In Austin, residents typically spend about 20% of their income on housing, which allows for some flexibility. Currently, one-bedroom apartments are priced between $1,400 and $1,700, while two-bedroom units range from $1,500 to $2,100. Even within the same city, prices can vary significantly based on location and amenities.
Speaking of amenities, features like in-unit laundry, modern kitchens, and pet-friendly policies have become major selling points in Austin’s rental market. These extras can significantly enhance the living experience, particularly for those new to the city. It’s also essential to carefully review lease terms, paying close attention to renewal policies and clauses that could impact long-term costs. Realtor Eleanore Bacon from Open House Austin offers this practical advice:
"The best time to look for Austin rentals? 30–45 days before your ideal move-in date."
This window allows renters to explore their options thoroughly without feeling rushed, making it easier to secure a unit that checks all the boxes. However, navigating these decisions alone can be daunting, and that’s where professional help comes into play.
With so many rental options available in Austin’s 2025 market, apartment locating services are becoming an indispensable resource. These services simplify the process by narrowing down listings to match your specific needs, saving you time and stress.
Take Taco Street Locating, for example. They provide detailed research spreadsheets that organize available apartments based on your budget, preferred location, and lifestyle requirements. Instead of wading through endless listings, you get a personalized list of options that align with what you’re looking for. From there, their experts can guide you through every step, including property tours and application assistance.
What makes these services invaluable is their ability to streamline the entire process. They ensure your paperwork is in order and help you act quickly when you find the right place. More than just finding an apartment, these services aim to help you secure the perfect fit, making your relocation to Austin as smooth as possible.
In June 2025, two-bedroom vacancy rates hit 10.01% – a staggering 152.78% rise since September 2021. At the same time, rents saw a sharp drop of 17.44%, falling from $1,726 to $1,425. These shifts in the housing market give employees more leverage when negotiating relocation packages, while companies find themselves in a better position to offer competitive deals. The result? Lower costs for businesses and higher satisfaction for employees.
Dan Price from Team Price Real Estate sums it up well:
"For those seeking to rent in Austin, the coming months and years may offer more favorable conditions than have been seen in nearly a decade."
The availability of apartments in Austin creates a unique opportunity for companies to strengthen recruitment and retention efforts. Workforce housing partnerships have been shown to improve hiring outcomes by 18% and boost employee retention by 22%. Moreover, 78% of businesses eyeing a move to Austin rank employee housing options as one of their top three priorities. Taco Street Locating, for example, monitors weekly market trends to secure the best rental deals for employees. By offering this kind of dedicated housing support, companies make transitions smoother for new hires. The stable rental market also reinforces Austin’s reputation as a solid choice for corporate relocations, adding to its economic appeal.
Timing is everything when it comes to employee relocations. With a surplus of available housing and rent concessions on the table, acting quickly can mean locking in better deals and reducing costs. Collaborating with local housing experts who provide up-to-date market insights can make all the difference between a seamless move and a stressful one. Businesses that move swiftly not only cut relocation expenses but also position themselves to attract and retain top talent in Austin’s competitive job market.
Austin’s rental market in 2025 is shaping up to be full of opportunities. Median rents have dipped nearly 5% compared to the previous year, and vacancy rates are holding steady at below 5%. This low vacancy rate is a double-edged sword – great for landlords but challenging for renters trying to secure a place quickly. For employers, though, this presents a unique chance to attract and retain talent. Workforce housing partnerships have boosted recruitment by 18% and improved retention rates by 22%.
The city’s demographic trends are also worth noting. Remote and hybrid workers made up 38% of new apartment leases in the first quarter of 2025, with a significant portion – 63% – relocating from states like California, Washington, and New York. These new residents, with an average age of 32 and incomes well above Austin’s median, highlight the city’s growing appeal for young, high-earning professionals.
All of these factors create a dynamic rental landscape that requires a thoughtful approach to navigate effectively.
With so many rental options available in Austin, finding the right apartment can feel like an overwhelming task. While having choices is a good thing, it can also lead to decision fatigue, causing renters to miss out on great opportunities. This is where a professional apartment locating service, like Taco Street Locating, becomes invaluable.
Taco Street Locating keeps a close eye on the market by tracking data on a weekly basis. This allows them to help renters secure the best units before they disappear. The service offers personalized consultations and even guided tours, ensuring renters make quick, informed decisions.
Considering Austin’s vacancy rate is one of the lowest in the country – hovering just under 5% – new listings don’t stay available for long. Some properties are leased within days, sometimes even hours. Having a local expert who knows the ins and outs of Austin’s neighborhoods and understands which properties offer the best value can make all the difference in a competitive market.
Every company’s relocation needs are different, and tailoring housing solutions to fit those needs is essential. For example, some organizations might be relocating tech professionals who prioritize smart home features and dedicated remote workspaces, while others might focus on families looking for good schools and community amenities. In 2025, the most in-demand apartment features in Austin include smart home technology, remote workspaces, and sustainability-focused designs. Energy-efficient rentals, in particular, are highly sought after. They command a 12% premium yet rent out 23% faster.
"Renters are choosing lifestyle and affordability over legacy zip codes." – SmartRent’s Market Shifts 2025 webinar
Understanding the unique qualities of Austin’s neighborhoods is key to making relocations successful. A custom housing forecast takes into account factors like your industry, employee demographics, and relocation timeline to provide insights that generic market reports simply can’t match.
Need a custom housing forecast for your team? Let Taco Street Locating take care of it. Investing in professional housing support doesn’t just save time – it also boosts employee satisfaction and makes the relocation process far smoother for everyone involved.
The expanding supply of apartments in Austin and the noticeable drop in rent prices are making the city a more budget-friendly option for newcomers. By April 2025, the vacancy rate for two-bedroom apartments has risen to 9.92%, a sharp increase compared to prior years. This surge in availability has pushed average rents down from $1,726 in August 2022 to $1,431 in April 2025.
For those moving to Austin, this translates to more housing choices and reduced rental costs, helping to ease the financial burden of relocating. With numerous new developments, such as 415 Colorado and Residences at ATX Tower, finding a place to live is shifting from a question of availability to choosing the apartment that best meets your lifestyle and preferences.
When weighing the options between urban and suburban living in Austin’s 2025 rental market, it’s essential to think about affordability, availability, and lifestyle needs. Urban neighborhoods often come with higher rents, a wealth of amenities, and a busier, fast-paced vibe. However, these areas also tend to have more competition for rentals, driven by high demand and elevated vacancy rates. Suburban areas, by contrast, usually provide more space, quieter surroundings, and can be a better fit for renters looking for affordability and stability.
If you’re moving to Austin for work, take into account how close you’ll be to your job and how much time you’ll spend commuting. Urban living might mean quicker access to downtown offices and the city’s vibrant entertainment scene. Meanwhile, suburban spots like Williamson County can be appealing for those seeking a family-friendly atmosphere and lower costs. The right choice will depend on your budget, lifestyle preferences, and what matters most to you in Austin’s ever-changing rental landscape.
Stress-Free Apartment Hunting in Austin with Taco Street Locating
Taco Street Locating makes it easy for newcomers to find their dream apartment in Austin. They bring a deep understanding of the city’s rental market, offering the latest details on rent prices, available units, and upcoming properties like 415 Colorado and Residences at ATX Tower.
By focusing on what matters most to you – whether it’s location, budget, or must-have amenities – they simplify the process of sorting through countless options. Their team works to pinpoint the perfect fit and even connects you directly with leasing offices. Plus, they guide you through every step, from starting your search to settling into your new home. The best part? Their personalized service doesn’t cost you a dime, giving you a head start in Austin’s competitive rental scene.
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