Renters in Austin have the upper hand in the city’s competitive apartment market. Despite falling vacancy rates, supply remains so high that many property managers are offering steep concessions — including up to two months of free rent — to fill units.
Concessions are typically applied as upfront discounts, but they can also be prorated across a lease to reduce monthly rent. They allow properties to preserve advertised rents while competing for tenants in a crowded market.
New data from Apartments.com shows that 41.2% of multifamily properties nationwide are now offering concessions, up nearly 10 percentage points from a year ago. In Austin, roughly 700 apartment complexes are currently offering concessions, with more than 60% advertising one to two months free, according to the report.
Austin’s oversupply of apartments is driving these concessions. Between 2015 and 2024, Austin added 120,000 units to its housing stock, representing a 30% increase, according to the Pew Research Center. The surge in new construction drove rents down, with median rent for a one-bedroom unit falling from $1,482 in August 2022 to $1,151 in March 2026, according to Apartment List data.
According to CoStar’s senior market analyst for Austin, Israel Linares, the city’s vacancy rate peaked at 16% in 2024 but has since fallen by 1.7 percentage points, even as demand remains historically high. Supply remains high enough that property operators are not yet seeing relief, but as construction slows, Linares said vacancies should continue to decline.
Despite high supply and strong demand, rents are down about 4.5% year over year and have declined for three straight years. Linares said there’s no “meaningful sign” that prices will increase anytime soon.
While conditions may favor renters in Austin’s saturated market, Linares said renters should watch for hidden fees as property managers look for additional revenue.