Oct 3, 2022 - Real Estate

Austin is one of the worst cities for renters

Metro areas with the highest median rent in August 2022
Data: Dwellsy; Chart: Axios Visuals/Axios

With a median rent for new listings of $2,930, Austin is still one of the most expensive cities for renters, per the latest from rental company Dwellsy.

Why it matters: Already-expensive rents have climbed in 2022, making it harder for people to afford housing close in.

By the numbers: Among the thousands of Austin-area listings posted through Dwellsy, asking price for rent increased 86.3% (!) from August 2021 to August 2022, the report showed, making Austin the fifth-most expensive metro area in the country.

  • And it ranked No. 5 in the list of Dwellsy cities where rents grew the fastest.

Driving the news: Demand for rental single-family homes is driving the market, per Dwellsy. Rent prices for those homes are up more than 36% year over year, while apartment rent has risen only 4.7%.

Yes, but: Rents could finally be peaking. Realtor.com's latest report shows August median rental prices nationwide were down from July — the first decrease since November 2021, Axios' Emily Peck writes.

The big picture: Many would-be buyers are stuck renting as surging mortgage rates make buying a nonstarter.

  • High demand and critically low supply drives rents up.
  • Once landlords realize they can charge more for a unit, "they're going to keep increasing the price to capture as much profit as they can," Redfin chief economist Daryl Fairweather told Peck in an earlier story.

🏆 Pro tip: Check out our one-minute guide to negotiating better rent.

Editor's note: This story was corrected to clarify that the median rent data was based on active listings from Dwellsy, not all rental units.

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