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ustin, Texas has seen a significant shift in the rental market, with rents plummeting 22% from their peak in summer 2023. The city's reputation as a prohibitively pricey locale was cemented in 2021 when companies and young workers flocked to the area, driving up prices by 25%. However, heavy investment in development and ambitious housing policies have flipped the script.

    The city's skyline has grown rapidly, with nearly all apartments offering special deals for move-ins. The influx of new units has led to a surplus, with landlords struggling to fill their properties and offering discounts such as two months' free rent. Austin's median rent has decreased by 16% year-over-year, the largest decline among major metropolitan areas.

    The city's population boom coincided with the national cost-of-living crisis, but developers responded by scaling back height rules, ending parking mandates, and shortening the permitting process. This led to a 14% increase in rental supply, with almost 50,000 units completed in 2023 and 2024.

    Landlords are now facing reduced leverage as they compete for tenants, offering incentives such as free rent and credits. Despite this, some large real estate investment trusts have expressed concerns about the market's performance, but expect rent growth to pick up again. Both rental and home prices remain above pre-pandemic levels, with Austin retaining its charm despite rapid development.