January 2025 Real Estate LEASE Market Report - Austin-Round Rock-San Marcos MSA

Overview

The January 2025 rental market in the Austin-Round Rock-San Marcos metropolitan statistical area (MSA) reflects increased leasing activity despite a slight decline in median rent. The data suggests a strong demand for rental properties, with more leases being signed and higher lease dollar volumes.

Market Analysis:

• Rental Pricing Trends: The median rent slightly decreased by 1.3%, indicating some pricing adjustments despite strong demand. This could be due to increased supply or shifting tenant preferences.

• Leasing Activity: Closed leases increased significantly by 11.7%, reflecting a higher number of completed rental transactions. Pending leases also saw a substantial rise of 13.9%, suggesting continued leasing momentum into the next month.

• Inventory and Availability: Active and new leases rose by 8.0% and 10.7%, respectively, indicating that more properties are entering the rental market. However, months of inventory slightly declined to 2.6 months, signaling that properties are being leased quickly.

• Time on Market: The average days on market increased to 69 days, meaning properties are taking slightly longer to lease than the previous year. This could be attributed to increased competition or more choices for renters.

• Landlord Negotiation Power: The close-to-rent price ratio improved to 95.4%, showing that landlords are still achieving close to their asking rents despite slight rent reductions.

Conclusion:
The Austin-Round Rock-San Marcos rental market remains active and strong, with increased leasing activity and steady rental price retention. While rental prices have slightly declined, the demand remains robust, leading to a competitive rental environment. The increase in available rentals gives tenants more options while still maintaining favorable conditions for landlords.