US Average Rent Drops for the First Time in 24 Months
While the decrease was only by $1 to $1,471, it still broke an upward trend in place since February 2017, according to a report by RentCafe, while the average rent in Texas is generally lower than the national average.
HOUSTON—The US average rent posted its first decline in more than two years. While the decrease was only by $1 to $1,471, it still broke an upward trend in place since February 2017, according to a report by RentCafe.
Of course, the average rent in Texas cities is generally lower than the national average rent. The fastest growing rents in September were in Edinburg, where rental apartment prices increased by 0.9% month-over-month or $8. Flower Mound apartments had the second highest monthly increase of 0.8%, making it $12 more expensive than last month, while Midland prices decreased by 1.5% ($23) compared to August.
Meanwhile, Texas’ largest cities are also posting decreases while the yearly gains are still positive. Some of the highlights for the major Texas urban centers:
Austin average rents decline by $4 compared to August, down to $1,433, remaining the most expensive large city in the state. The yearly uptick was $75, which is considerably higher than in the other cities highlighted.
Average rents in Dallas are down $2 to $1,235, while Fort Worth had an increase of $2, reaching $1,129. Both cities recorded the same cost increase of $47 compared to September 2018.
Houston had the largest decrease in average rents of $5, settling at $1,101. Since last year, the rent increased just $5.
“Houston rents saw the most significant decline out of all of Texas’s major urban areas last month,” Irina Lupa, who authored the RentCafe article, tells GlobeSt.com. “The 0.5% dip in prices since August comes after months of uncertainty in the oil industry and a rise in the supply of finished apartments. Coupled with falling demand both in the renters by choice and renters by necessity segments, the downturn shows Houston is unlikely to see an upsurge in prices in the near future.”
San Antonio rents are the cheapest among the four largest metros, averaging at $1,045. Those rents declined by $2 in September while still being more expensive by $37 compared to last year.
El Paso is the number two city in the lowest rents category at $781.