Texas cities lead U.S. in significant rent declines

Texas is leading the United States in annual rent declines, according to a new report from Zumper. Major metropolitan areas including Austin, Houston, and Dallas have seen significant drops in rental prices due to an elevated multifamily supply that has outpaced demand.

In Houston, one-bedroom rent prices have fallen by 14.6 percent since August of the previous year, with average monthly costs sitting at $1,050. Two-bedroom units in the city have also decreased by 5.4 percent. Austin recorded the steepest declines in the country, with one-bedroom rents dropping 16.6 percent and two-bedroom rents falling 19.1 percent.

Dallas reported a 13 percent year-over-year decrease for one-bedroom apartments. Zumper CEO Shawn Mullahy noted that renters currently hold more leverage in negotiations as landlords compete to fill the enormous amount of new inventory added during recent boom years.