WACO, Texas (KXXV) — Rent prices in Central Texas and the Brazos Valley closed out 2024 higher than past years. Local broker and business owner Cory Duncan and research associate with Apartment List Rob Warnock spoke with 25 News about what's trending for 2025.
- Year-over-year rent growth in Waco now stands at +4.9%, up from -3.9% one year ago
- In 2024, the median rent in the College Station-Bryan metro was $1,341
- In 2025, it is expected to be $119 more expensive at $1,460, a year-over-year increase of 8.9%
BROADCAST TRANSCRIPT:
In Waco, where according to Apartment List, the city ended 2024 with rent prices being up just shy of five percent (4.9%) — experts say there’s a variety of factors causing this.
“It’s more expensive, so that of course includes the mortgage, which is your principal and interest, and then property taxes and insurance," said local broker and owner of Haus Realty, Cory Duncan.
:As that gets more expensive, it drives buyers or potential buyers into the rental market — higher demand, then higher prices. I think that’s an effect we’re seeing from the top down."
“The expectation for 2025 is that there’s still a lot of construction in the pipeline and new homes that will be built, which tend to slow rent growth, but that trend is basically set to end throughout 2025,” said Rob Warnock, Senior Research Associate at Apartment List.
Looking at the College Station renters market, the year-to-year increase closing out in 2024, was 8.9% — but why so high for a predominate college town, and how much higher could it get this year?
“That almost nine percent in College Station, it’s tough to say that that’s sustainable over time," Duncan said.
"The reason that we want to look at that and keep an eye on that is because unless income growth is growing at a rate of nine percent a year, which it simply is not, then the rental prices will start to outpace rental income and become too expensive."
“The fact that we’re seeing positive rent growth at this time of year in Waco and in Bryan/College Station I don’t think is necessarily a surprise, I think it’s just the nature of having a rental market that is going to be so influenced and dominated by the presence of the university,” Warnock said.
