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real estate expert is sounding the alarm that Austin's rental market is "collapsing" just years after it boomed during the COVID-19 era. The city saw a surge of people moving there for warmer weather and affordable living as remote work became the norm. Between 2010 and 2020, the Austin metro area grew by 33%, adding over 567,000 people, with 53,301 new residents in 2020 and 2021 alone.

    However, according to Nick Gerli, CEO of Reventure, this trend is reversing. "The Austin, TX rental market is collapsing before our eyes," he wrote on social media. Rents have dropped by 15% over the past two years, with vacancies skyrocketing and rental concessions becoming common. Many landlords are now losing money due to increased property taxes and insurance costs.

    Gerli attributes this shift to a "dueling forces" scenario, where reduced demand post-pandemic clashes with an oversupply of housing units. At the peak in 2022, over 25,000 multifamily units were permitted, but many remain vacant, forcing landlords to lower their rents. The rental vacancy rate has risen from 3.9% in September 2021 to 9.5%.

    While this is good news for renters, Gerli warns that landlords may face a "nightmare scenario" as expenses continue to rise and property taxes increase by up to 40%. Austin home prices are also adapting, with the city's housing market now considered only 12% overvalued, down from 50% two years ago.