Hey There!
Happy April! As we move into Q2 and spring leasing season, weāre seeing a rental market that remains soft but stable in many ways. Marchās data shows slight downward pressure on pricing and an uptick in average days on market, especially for duplexes.
March 2025 Rental Market Update - Watch Video
Single-Family Rentals (SFRs)
The single-family rental market was relatively steady year over year, with only a slight 1% decline in total leases. However, average and median rents continue to soften. The average lease price dropped 2.43% to $2,528, while the median lease rate fell more sharply, down 4.35% to $2,200.
Inventory remained flat, with new listings up just 0.15%, but homes are sitting longer, with average days on market increasing by nearly 12% to 47 days.
Takeaways for SFRs:
- Renters have more negotiating power as pricing continues to dip slightly.
- The leasing process is taking longer than it did this time last year.
- With steady inventory and softening prices, weāre entering a more balanced market.
Duplex Rentals
The duplex market experienced more noticeable shifts. Total leases dropped by 8.22%, while new listings increased by over 20%, indicating a growing supply-demand mismatch. Average rents declined 6%, and the median rent dropped 3.2%.
Average days on market increased sharplyāfrom 43 days in March 2024 to 52 days in March 2025, a 21% rise. Duplex owners may feel this slowdown more acutely as tenants are taking longer to commit, and pricing is adjusting in response to higher inventory levels.
Takeaways for Duplexes:
- Duplexes are leasing slower and at lower rates.
- Increased supply is contributing to pricing pressure.
- Landlords should be proactive with pricing, marketing, and property condition.
Current Market Temperature
The Austin Metro rental market is cooler than in years past for this time of year, but not frozen. As we head into April and May, activity typically increases, but itās clear that renters are shopping carefully and have more choices.
Tips for Landlords This Spring
- Price strategically: A competitive rental price can reduce vacancy and attract better tenants faster.
- Boost rental appeal: Small improvements like landscaping or exterior touch-ups can make a big difference. Including refrigerator/washing machine/dryer in your rentals has become more desirable.
- Prepare for listing: If your property is coming available this summer, start preparing now by coordinating with vendors and ensuring funds are available to address any necessary maintenance issues.
- Offer light incentives: If your property is sitting, consider small move-in perks to encourage action such as a free week of rent.
- Communicate renewals in advance: Early conversations about lease renewals help reduce turnover and keep relationships strong.
If youād like help reviewing your rental pricing or prepping your property for leasing season, donāt hesitate to reach out! Weāre here to help you reduce vacancy, protect your investment, and stay ahead of the curve in Austinās changing rental market.
We'll continue tracking these trends closely. If you're considering full service property management or adjusting your rental strategy, please contact me adrienne@treatyoakproperties.
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