Apartment rent keeps going up in Texas, and in San Antonio the increase is seven percent more than last year, making it more difficult to afford living in the city. That’s according to a new national rent report from online rental marketplace Zumper.
Despite rent increases showing small improvements month-over-month, overall prices are still on the high side from the previous year. For example, the average rent for a two-bedroom apartment in San Antonio is $1,430 now, in March of 2023, which is a 1.4 percent decrease from the previous month, but a 4.4 percent increase from 2022. The average rent for a one-bedroom is $1,160, which is a mere .90 percent increase month-over-month, but a whopping 7.4 percent increase from last year.
The report looked at rental data from more than one million active listings in the top 100 cities in the United States to determine the rankings. Zumper ranked San Antonio the No. 66 most expensive rental market across the nation in February of 2023, up three places from the last report.
The report attributes these recent rental increase trends to the nation's rising inflation rate and unpredictable economy. Though unemployment is low (less than 3.4 percent), potential homebuyers are being sidelined with increasing interest rates. This is causing more competition among renters all over the country.
“Many markets continue to either normalize or correct following the steep increases in rent seen in 2021 [and 2022] in the zero interest rate [and] QE environment we went through,” said Zumper CEO Anthemos Georgiades in the report. “With interest rates expected to rise further in 2023, we anticipate continued deceleration in rent rises as new household formation freezes or is at least postponed.”
Much higher up the list from San Antonio is its Central Texas neighbor Austin, coming in as the No. 25 most expensive rental market, which is a two-place increase from a previous report. Average rent for a one-bedroom apartment stayed relatively flat over the last month, at $1,670, yet is still 7.7 percent higher than it was last year. Two-bedroom apartments saw a higher year-over-year increase at 8.4 percent, with the average rent price at $2,070.
Several cities in the DFW metro area also made the list, as well as Houston (No. 51) and El Paso (No. 95). Most notably, Irving (No. 34) is experiencing a nearly 15 percent year-over-year rent increase for both one- and two-bedroom apartments.
The nine total Texas cities that made the list include:
- No. 25 – Austin
- No. 34 – Irving
- No. 36 – Dallas
- No. 40 – Plano
- No. 51 – Houston
- No. 55 – Fort Worth
- No. 66 – San Antonio
- No. 67 – Arlington
- No. 95 – El Paso
The full data from Zumper’s National Rent Report can be found at zumper.com.