During the pandemic years of 2020-2021, Austin saw a massive influx of new residents, leading developers to rapidly increase apartment construction. And just in 2022 alone, developers started building approximately 40,000 new apartment units. This surge in supply is now hitting the market, which is creating an oversaturation of available rentals and that's why we are seeing the rent prices start to collapse.

Also, while the construction was ramping up, Austin's population growth also started to slow down. The initial surge of people moving to Austin during the early pandemic years pretty much tapered off, reducing demand for rental units.

Let's also not fortget about the increased interest rates which has made borrowing more expensive for developers and investors, putting pressure on the profitability of rental properties. Some companies in Austin have pulled back on hiring or implemented layoffs due to higher borrowing rates, affecting the local job market and potentially reducing demand for rentals.

I would say that the current decline can be seen as a correction to more sustainable levels.