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As rents across the country go up, Austin prices continue to fall – Austin Monitor

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As rents across the country go up, Austin prices continue to fall – Austin Monitor


Photo by Gabriel C. Pérez/ KUT News

Wednesday, September 11, 2024 by Audrey McGlinchy, KUT

During the pandemic, Austin came to exemplify the story of housing across the country: Prices went through the roof. In 2021, the average monthly rent in the region rose 25 percent. Similar increases happened in cities in California and Arizona.

But that narrative has flipped. As tens of thousands of new apartments have opened in Austin and the rate of people moving to the city has slowed, rent prices have been falling. For more than a year.

According to new numbers from Zillow, Austin is now leading the country in declining rents. But this time few other large U.S. cities are following.

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The typical monthly rent in the Austin metro is down nearly 4 percent compared to last summer. Rents in similarly priced cities – including Dallas, Phoenix and Atlanta – are rising. The average monthly rent in Austin is now anywhere between roughly $1,500 and $1,800.

 

In the early years of the pandemic, demand for apartments rose. Tens of thousands of people moved to the city because they could suddenly work remotely. Meanwhile, some residents already living here decided to leave shared living situations and find apartments on their own.

In response to the demand for housing, rent prices rose at an incredible pace. To builders, this indicated a need and a business opportunity: more homes.

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“A lot of builders … they look at the demographics and they look at the job growth and they look at projections and they say, ‘You know what, this is going to be a good place for me to build,’” Kim Betancourt, vice president of multifamily research at mortgage-backer Fannie Mae, said. “This is what happened with Austin.”

In 2021, local governments in the Austin area issued permits to build nearly 51,000 homes, according to census data. While not every developer that receives a permit eventually builds, this represents a rate of permitting much higher than in other cities at the time.

 

Because construction takes several years, apartments permitted years ago are now opening. At the same time, the population surge that defined Austin in 2020 and 2021 has slowed.

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More homes, fewer new people. Thus, rent prices began to fall last summer.

“It’s that building bonanza that helped to bring costs back down to earth,” Orphe Divounguy, a senior economist at Zillow, said.

Divounguy stressed that “back down to earth” does not necessarily mean more affordable. In 2022, nearly half of all renters in the Austin area lived in housing they could not afford, according to Harvard University’s Joint Center for Housing Studies.

Economists predict that Austin’s falling rents won’t last beyond next year. Because of construction costs, developers are building less than they were just two years ago.

“It’s not gonna last long,” Betancourt said.

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This story was produced as part of the Austin Monitor’s reporting partnership with KUT.

The Austin Monitor’s work is made possible by donations from the community. Though our reporting covers donors from time to time, we are careful to keep business and editorial efforts separate while maintaining transparency. A complete list of donors is available here, and our code of ethics is explained here.

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Austin, TX

Texas Evening Briefing March 11

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Texas Evening Briefing March 11


Good evening, Texas. We’re wrapping up the day for you with the most important stories you need to know and your weather outlook.

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Get your 7-day forecast: Austin | San Antonio | Dallas

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Watch the latest news and more local stories from across the country.


Today’s Big Stories

1. Talarico plans to win over Black voters after winning primary tinged with racial tension

State Rep. James Talarico, D-Austin, claimed the Democratic nomination after defeating U.S. Rep. Jasmine Crockett, D-Dallas. Talarico had strong support from Latinos in the primary, but he’s missing support from a key bloc of voters.

Their race was tinged with racial tension after a social media influencer alleged Talarico called former U.S. Senate candidate Colin Allred a “mediocre Black man.” Talarico’s response was that he was referring to Allred’s campaign. And Crockett called an attack ad that used a filter, which darkened her skin, racist. Talarico said he had no control over the ad, which came from a pro-Talarico PAC, which the campaign can’t legally coordinate with.

2. City of Pflugerville says ‘it’s going to be a while’ before Stage 3 water restrictions lift

The City of Pflugerville is working to repair its fourth waterline break since September as residents operate under Stage 3 emergency water restrictions until further notice.

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In a City Council meeting Tuesday, city officials provided a timeline of breaks to the existing raw waterline, which is a 30-inch waterline that connects the Colorado River Pump Station up to Lake Pflugerville. The first happened in September and took 12 days to fix. The next came in November and took 17 days to repair, and the third came in January and also took 17 days to fix.

Officials identified a fourth break on Feb. 6 but didn’t actually locate it roughly 20 feet under a creek until Feb. 17. Work began on a 24-inch temporary bypass waterline on Feb. 10.

3. President Trump announces first new U.S. oil refinery in 50 years to open in Brownsville, Texas

President Donald Trump announced plans to build the first oil refinery in the United States in 50 years, and it will be in Brownsville, Texas, according to a Truth Social post.

Notes for Tomorrow

Thursday, March 12

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  • PGA Tour golf continues
  • Court hearing for Lil Nas X charged with assaulting police during arrest 
  • 2026 Milano Cortina Winter Paralympic Games continue, with three gold medals decided in a single sport
  • Billy Joel honored at Michael Dorf’s annual Music Of tribute concert
  • South by Southwest Festival and Conference kicks off in Austin 

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Houston Rockets forward Kevin Durant (7) reacts after scoring a 3-point goal during the second half of an NBA basketball game, Saturday, Feb. 21, 2026, in New York. (AP Photo/Yuki Iwamura)

University of Texas with Kevin Durant partner with NIL, Nike for KD apparel

The University of Texas athletics, with former player Kevin Durant, announced an NIL partnership with Nike to allow specific student athletes to wear KD brand apparel.



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Austin, TX

Texas ban on selling smokable cannabis takes effect March 31

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Texas ban on selling smokable cannabis takes effect March 31


Smokable cannabis products must be removed from Texas stores by the end of the month under new rules adopted by the state’s health department.

Virtually all edible hemp products will still be allowed with stricter packaging and testing requirements. But sharply higher fees on retailers and manufacturers, while lower than initially proposed, could lead to more expensive products or force some companies out of business.

The sweeping regulations for the state’s hemp industry were first recommended in December. They were created based on an executive order issued by Gov. Greg Abbott after the Texas Legislature couldn’t agree whether to regulate THC products more strictly or ban them entirely.

Last week, the Texas Department of State Health Services adopted its final version of the rules and said they would take effect March 31.

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The new regulations effectively ban the sale of smokable hemp and extracts by changing how DSHS measures Delta-9 THC, the primary psychoactive ingredient in cannabis.

Michael Minasi

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KUT News

Live resins and rosins extracted from cannabis, such as these sold at Austin’s ATX Organics, have become popular in part because they’re faster acting and easier to dose than edible hemp products.

Under the state’s 2019 hemp law, cannabis with no more than 0.3% Delta-9 by dry weight is considered legal hemp.

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The adopted DSHS regulation includes a new “total THC” rule, which counts a cannabis compound known as THCA in the Delta-9 calculation. THCA converts to Delta-9 when heated or smoked, which is why a product known as THCA flower has become widely popular in Texas.

During the public comment period, hundreds of people told DSHS they oppose counting THCA as Delta-9. THCA is not explicitly banned by state or federal law.

In its response, DSHS said the “total THC” policy follows existing state and federal regulations, which are the rules written by government employees tasked with interpreting law.

The Texas Agriculture Commission adopted regulations in 2020 requiring that tests account for the potential conversion of THCA to Delta-9. The U.S. Department of Agriculture proposed a similar rule on the last day of President Trump’s first term. The rule was adopted two months later by the Biden administration.

The state’s new hemp regulations slash a proposed 10,000% increase in the annual fees charged to retailers and manufacturers of what Texas calls “consumable hemp products.” But the adopted fees — $5,000 per year for each retail location and $10,000 per year for each manufacturing facility — are still 33 and 40 times higher, respectively, than existing levies.

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More than 9,100 retail locations in Texas are registered to sell consumable hemp products, according to state health records.

Smoke ATX off of West Slaughter Lane pictured on Monday, July 21, 2025, in Austin.

Michael Minasi

/

KUT News

Smoke ATX off of West Slaughter Lane is among 9,100 locations registered with the state to sell hemp products. The annual fee for hemp retailers will increase from $150 per location to $5,000 under the new rules adopted by DSHS.

Some retailers say the fees are still crippling, especially coupled with the new prohibition on smokable products.

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“It’s a high rate, but it would still be feasible, but then we come into the [THCA] regulations,” said Estella Castro, owner of the hemp store Austin Cannabis Co. “If you don’t have the flower, and the flower is going off completely, I don’t think you’re going to have the $5,000.”

Castro said smokable products account for about 40% of her sales.

Cannabis advocates say they are glad to see new product recall standards and a process to track consumer complaints, but they believe high licensing fees and a ban on flowers and extracts will power up the unregulated market.

“We know that consumers will be able to still acquire these products either from out of state operators who are not restricted by DSHS regulations or from the illicit market, which causes the most concern for us,” said Heather Fazio, who leads the Texas Cannabis Policy Center. “The illicit market doesn’t have age restrictions. It doesn’t have safety mechanisms and consumer protection.”

The new DSHS rules only affect the manufacture, distribution and sale of hemp products. They don’t affect state law allowing for possession of them.

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Mark Bordas, head of the Texas Hemp Business Council, compared the $10,000 fee annual on hemp manufacturing facilities to the Texas Alcoholic Beverage Commission’s fee on distillers: $3,000 every two years.

“Our concern is some of these measures are so draconian that you are going to drive people out of the business and then folks’ access to the products,” Bordas said. “Invariably, we’re going to have to bring forth a [lawsuit], and the state has to defend what it’s done, and that’s taxpayer money, and it’s a waste.”





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Austin, TX

3 Top Texas Longhorn Recruiting Targets Were Blown Away By Their Visits to Austin

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3 Top Texas Longhorn Recruiting Targets Were Blown Away By Their Visits to Austin


The Texas Longhorns continue to do everything they can to better their team for the future, including dominating on the recruiting trail with some of the most sought-after prospects in the country.

Their latest installment comes after extending offers to offensive lineman Ty McCurry and Jayden Thompson, while also leaving a favorable impression on premier recruit Brayson Robinson.

As they continue to make a push for another top-10 class under head coach Steve Sarkisian, the Longhorns made a staunch impression on three of their top targets for the 2028 cycle.

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Forty Acres Stands Out

Texas Longhorns defensive back Kobe Black (6) and teammates react after making an interception during the second half against the Texas A&M Aggies at Darrell K Royal-Texas Memorial Stadium. | Scott Wachter-Imagn Images
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The Longhorns continue to make a push on the recruiting trail, hosting some premier targets on the first day of spring camp, and extending offers to McCurry and Thompson. Both players were impressed with what they saw, not just on the football field, either, but from the Forty Acres as well.

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“They said I’m their top guy and that they want me back out for a visit soon. “McCurry tells me of his conversations with the Longhorns before continuing on where they stand in his rankings. “I’ve loved the past two times I’ve been in Austin to check out the Longhorns and can 100 percent see them being a contender in my commitment down the line.”

McCurry was a Sports Illustrated freshman All-American and currently stands at 6-foot-6 and 270 pounds, currently holding 11 offers with many of them coming from the Lone Star State. The other offer from the first day of practice went to Jayden Thompson, number 15-ranked offensive tackle in the 2028 class according to 247Sports.

“My conversations with the coaches went very well, they were all very inviting and helpful,” Thompson told Texas Longhorns On SI of the Longhorns staff. “If I had one takeaway, it would be the tour of not just the football part of the school, but the campus as well.”

Another target for the 2028 cycle is Brayson Robinson, an edge defender out of Mavel, Texas. While he didn’t receive an offer yet, he has quickly garnered interest with some of the top programs in the country. The Arizona State Sun Devils and Alabama Crimson Tide have been on him mainly, but he’s hearing from a lot of schools, including the Longhorns, who impressed him.

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“It went amazing and I like how every coach introduced themselves to my family and me,” Robinson told Texas Longhorns On SI about his visit. “I also love the culture.”

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With still a while to go until the 2028 cycle becomes the forefront on the recruiting trail, Sarkisian and his staff continue to set themselves up to be at the top of the conversations regarding the premier talent on their target board.



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