Apartment rents finally start to decline in Dallas and across the U.S.
In good news for renters, rates finally appear to be dropping in Dallas and across the U.S. — and it's a trend predicted to prevail through the end of 2022.
After more than a year of record-setting rent hikes, rent prices decreased in October for the second month in a row. According to a report by Apartment List, rent across the U.S. went down by 0.7 percent in October — the largest single-month dip since 2017.
Rents went down in 89 of the nation’s 100 largest cities for the second straight month, following a peak in August, and a welcome reversal to major rent increases that have occurred since the pandemic.
Here are current rates among 11 of the largest cities in the U.S.:
- San Francisco – $2,640
- Los Angeles – $2,200
- New York City – $2,170
- Seattle – $1,990
- Austin – $1,830
- Washington, D.C. – $1,790
- Dallas – $1,470
- Phoenix – $1,470
- San Antonio – $1,320
- Houston – $1,290
- Memphis – $1,130
The current national average rent for a two-bedroom apartment is $1,348.
The October decline offsets what has been a major increase in the past year: In 2022, rents are already up by a total of 5.9 percent, compared to 18 percent at this point in 2021.
In the past year, Texas averaged a 6.6 percent increase in rental rates as compared to a year ago. Breaking that down among Texas cities, Dallas tops the list:
- Dallas: 10.1 percent increase
- Fort Worth: 7.5 percent
- San Antonio: 5.8 percent
- Austin: 5.3 percent
- Houston: 4 percent
While the October downtick is something to celebrate, they warn that it's consistent with a seasonal trend existed even prior to the pandemic craziness. Still, they anticipate that rents will continue to decline in the coming months.
In October, rent in Dallas declined by 0.9 percent — helping to soften its 10.1 percent increase in the past year and its unprecedented 24 percent rise since March 2020.
The current median rent in Dallas is $1,232 for a one-bedroom apartment and $1,472 for a two-bedroom.
In the DFW area:
- Mesquite saw the highest increase — up 18.3 percent from a year ago, with $1,498 for a two-bedroom
- Plano has the highest rent in the DFW area: $1,996 for a two-bedroom
- Fort Worth has the least expensive rent: $1,335 for a two-bedroom
Rents in Houston are the most affordable among big Texas cities and even among comparable cities nationwide. Houston's median two-bedroom rent of $1,288 is below the national average of $1,348, following a 0.3 percent decline in October.
In the Houston area:
- Galveston had the fastest growth in the metro with an increase of 10.9 percent. A two-bedroom now goes for $1,175.
- Baytown has the least expensive rent in the Houston area, with rent for a two-bedroom at $1,124.
- Sugar Land has the most expensive rent at $1,984 for a two-bedroom.
Austin's rent declined by 1.5 percent over the past month, with median rent coming in at $1,826 for a two-bedroom and $1,500 for a one-bedroom.
In the Austin area:
- Leander saw the biggest decline with 1.8 percent. It has the least expensive rent in the Austin metro, with a two-bedroom median rate of $1,414.
- Round Rock endured the biggest increase: 8.7 percent higher than a year ago, with a two-bedroom currently at $1,788.
- Cedar Park has the most expensive rent, at $1,903 for a two-bedroom. Rent climbed 2.6 percent over the past year.
Compared to other large cities across the country, Austin comes in as "less affordable" for renters. Duh.
San Antonio rent declined by 0.9 percent over the past month, offsetting a significant increase of 5.8 percent over last year — the third largest increase in Texas behind Dallas.
Current rental rates in San Antonio are $1,317 for a two-bedroom, just below the national average ($1,348), and $1,066 for a one-bedroom — making San Antonio still more affordable than most large cities across the U.S.
Rent in Fort Worth declined by 0.8 percent over the past month — helping to offset its 7.5 percent increase in comparison to the same time last year, which not only exceeded Texas' overall average but also the national average of 5.7 percent. Current median rent in Fort Worth is $1,335 for a two-bedroom, and $1,159 for a one-bedroom. Fort Worth is still more affordable than most large cities across the U.S.