AUSTIN, Texas (NewsNation) — Amid nationwide inflation and rising costs, Austin, Texas, has managed to lower rents by using a combination of housing construction and expanding the criteria for mixed-use buildings.
According to Pew Research, rents decreased 4% in Austin and its surrounding suburbs from 2021 to 2025.
Part of that can be attributed to the city’s strategy of encouraging affordable housing and offering density bonuses for the construction of taller buildings with more units.
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A growing body of research in recent years shows that stringent local restrictions on what kinds of homes can be built and where, known as zoning regulations, ultimately limit the overall number of homes and thus contribute to higher costs
Relaxing those regulations, research shows, helps cities add more homes and contain housing costs.
“Renters in areas where construction has boomed are in a sweet spot right now. Affordability is improving as rents fall and wages rise, and there is increased choice with more and more new apartment buildings opening,” Redfin Senior Economist Sheharyar Bokhari said in a news release in 2024. “As construction starts to slow, rents will eventually tick back up, but 2025 is shaping up as a renter’s market with potential for the affordability gap between buying and renting to widen.”
Nearly half of Austin residents rent their homes, amounting to one of the highest rentership rates nationwide, according to rent.com.
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