February 2025 Real Estate LEASE Market Report - Austin-Round Rock-San Marcos MSA
The Austin-Round Rock-San Marcos rental market experienced some shifts in February 2025, showing signs of softening as rental rates declined slightly, active listings increased, and lease activity slowed. Here’s a detailed analysis of the latest leasing trends and what they mean for renters and landlords.
Rental Market Overview
Median Rent: $2,195 (⬇ 2.4% YoY)
Closed Leases: 1,751 (⬇ 4.0% YoY)
Lease Dollar Volume: $4.35 million (⬇ 6.2% YoY)
Months of Inventory: 2.3 months (⬆ 0.3 months YoY)
Average Close to Rent Price: 96.4% (Compared to 96.0% in Feb 2024)
Key Rental Market Trends
Slight Decline in Rental Rates
The median rent in the region dropped by 2.4% compared to the previous year, signaling a potential shift towards a more tenant-friendly market. The total lease dollar volume also declined by 6.2%, reflecting reduced competition for rental properties.
Increase in Active Listings & Pending Leases
New Leases: 2,036 (⬇ 2.0% YoY)
Active Leases: 3,899 (⬆ 3.5% YoY)
Pending Leases: 1,977 (⬆ 6.5% YoY)
Despite a slight decline in new leases, the number of active rental listings increased, providing renters with more choices. Pending leases also rose, indicating that while demand remains, renters may be taking longer to make leasing decisions.
Longer Days on Market
The average time for a rental to be leased increased to 61 days—a three-day increase from last year. This suggests that tenants have more flexibility in their housing search, and landlords may need to adjust pricing or offer incentives to attract renters more quickly.
What This Means for Landlords & Renters
Landlords: With an increase in active listings and a decrease in rental prices, landlords should price their properties competitively and consider offering incentives such as reduced deposits or free first-month rent to attract tenants.
Renters: The slight dip in rent and increased rental availability means renters have more negotiating power and can take their time to find the right home at a favorable price.
Final Thoughts
The February 2025 rental market in the Austin-Round Rock-San Marcos area shows signs of softening, with more available properties, slightly longer leasing times, and a small decline in rental rates. While the market remains active, landlords may need to adjust their strategies to secure tenants, while renters can benefit from increased choices and better deals.
For those navigating the rental market, whether as a tenant or landlord, staying informed on current trends is essential. If you need expert advice on leasing strategies or finding the right rental property, reach out for personalized guidance!