AUSTIN, Texas — As cities across the country struggle with rising rents and worsening affordability, Austin is emerging as one of the clearest real-world examples of what happens when local governments allow substantially more housing to be built: prices begin to ease. After years of steep rent increases driven by rapid population growth, Austin’s median rent fell more than 16% between 2021 and 2026, according to a new analysis highlighted by Pew and reported by Smart Cities Dive. During roughly the same period, the city added housing at a pace that far outstripped most of the nation. Between 2015 and 2024, Austin expanded its housing stock by 120,000 units — a 30% increase. By comparison, overall U.S. housing growth during that span was 9%, according to the report. Median rent in Austin is now 4% lower than the national average. The data arrive at a time when housing debates in California and elsewhere often center on whether more supply can actually lower costs. In Austin, multiple independent reports suggest the answer is yes — though not without limits or remaining affordability challenges. “Austin’s success serves as an important example of how regulatory barriers to building more housing are often varied and interconnected,” Pew’s report stated. “No single solution can solve a housing shortage, but Austin has taken multiple steps that have helped to unlock large amounts of housing supply in its market and reverse rent growth.” Austin’s story did not begin with falling rents. It began with a boom. The metro area’s population surged 33% from 2010 to 2020, creating intense demand for housing. During the prior decade, rents in Austin skyrocketed by nearly 93% from 2010 to 2019, according to the report. Then the COVID-19 era brought another wave of migration, strong job growth and additional upward pressure on