Dallas, TX, December 24, 2025
The Texas rental market reveals significant contrasts as Dallas shows remarkable demand for rental units, boosting economic growth in the area. Meanwhile, cities like Austin and Houston face challenges with oversupply and occupancy issues. Dallas-Fort Worth stands out with a projected influx of new apartments, while Austin grapples with declining rent prices. Overall, the dynamics of the rental market in Texas highlight diverse local conditions and set the stage for future trends and developments.
Texas Rental Market Diverges: Dallas Surges While Others Struggle
A closer look at Texas’s rental market reveals interesting dynamics across its major cities.
December 24, 2025 – Dallas, TX
The Texas rental market presents a fascinating picture of resilience and fluctuation, with Dallas demonstrating significant demand while cities like Austin and Houston grapple with oversupply. The ability of local entrepreneurs and property developers in Dallas to adapt to changing market conditions offers hope for the future, illustrating the potential for economic growth and innovation fueled by limited regulation and community engagement.
Dallas-Fort Worth Area
The Dallas-Fort Worth area has emerged as a leader in Texas’s rental market growth. In 2025, the metro region is set to add 28,958 new apartments, ranking second in the nation for new developments. Despite this substantial influx, the demand for rental units continues to outpace supply, with over 12,000 new apartments successfully leased by mid-year. This elevation in demand has resulted in an annual decline of 2% in rental rates since 2023, following earlier spikes. Notably, multifamily rents experienced a monthly decline of 0.7% in October 2025, yet they remain 16% higher than 2019 levels, underscoring the market’s overall strength. Property managers have responded with incentives such as up to three months of free rent in some suburban areas to maintain competitiveness.
Austin
In contrast, Austin’s rental market is experiencing some turbulence, primarily due to an oversupply of newly constructed apartments. The city’s average monthly rents plummeted by 12.5% year-over-year in December 2024, the second largest decline among major U.S. metros. January 2025 saw occupancy rates fall to 86%, the lowest among 12 Sunbelt markets. This overabundance of inventory has caused rent prices to consistently decline since the peak of the multifamily building boom in the summer of 2022.
Houston
Houston’s rental landscape tells a different story, characterized by relative stability. In November 2025, single-family rental leases increased by 10.2% year-over-year, with lease prices modestly rising by 0.4% to an average of $2,244. An increase in rental inventory has afforded renters more choices and helped sustain demand. The multifamily rental market remains steady, supported by slower construction activity and consistent demand, particularly in Class A properties, which continue to attract tenants.
Statewide Trends
On a statewide level, the average rent in Texas reached $1,553 as of March 2024, reflecting a slight decrease of $22 month-over-month. Median rents vary across cities, with Austin leading at $2,216, followed by Dallas at $1,920, Houston at $1,699, and San Antonio at $1,745. These figures highlight the diverse rental dynamics within Texas, influenced by local economic conditions and housing supply-demand realities.
Looking Ahead
As we venture into 2026, forecasts indicate a significant tapering in the pace of new apartment deliveries across Texas. Developers are planning to reduce apartment completions to approximately 11,700 units per quarter, down from over 23,000 units per quarter in recent years. This expected slowdown could alleviate pressure on occupancy levels, allowing the rental housing market to rebalance, assuming demand remains stable.
Frequently Asked Questions (FAQ)
What is the current average rent in Texas?
The average rent in Texas was $1,553 as of March 2024, a decrease of $22 month-over-month.
Which Texas city has the highest average rent?
Austin has the highest average rent among major Texas cities, with a median rent of $2,216.
How has the Dallas-Fort Worth rental market performed recently?
The Dallas-Fort Worth metro area has seen strong demand, with over 12,000 new apartments filled by mid-2025. However, multifamily rents declined by 0.7% in October 2025, marking the sharpest monthly drop of the year.
What is the outlook for the Texas rental market in 2026?
Apartment deliveries in Texas are expected to slow significantly in 2026, with developers planning to cut completions to about 11,700 units per quarter, down from over 23,000 per quarter in 2024 and 2025. This slowdown could help rebalance the state’s rental housing market, assuming demand remains consistent.
Key Features of the Texas Rental Market
| City | Average Rent | Year-over-Year Change | Occupancy Rate | Recent Trends |
|---|---|---|---|---|
| Austin | $2,216 | +0.83% | 86% (January 2025) | 12.5% rent decline in December 2024 |
| Dallas-Fort Worth | $1,920 | -2.29% | 88.9% (October 2025) | 0.7% rent decline in October 2025 |
| Houston | $1,699 | -1.51% | 88.7% (January 2025) | Stable rent and occupancy rates |
| San Antonio | $1,745 | -0.95% | Not specified | Stable rent and occupancy rates |
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Author: STAFF HERE DALLAS WRITER
The DALLAS STAFF WRITER represents the experienced team at HEREDallas.com, your go-to source for actionable local news and information in Dallas, Dallas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the State Fair of Texas, Deep Ellum Arts Festival, and Dallas International Film Festival. Our coverage extends to key organizations like the Dallas Regional Chamber and United Way of Metropolitan Dallas, plus leading businesses in telecommunications, aviation, and semiconductors that power the local economy such as AT&T, Southwest Airlines, and Texas Instruments. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
