It is primarily over the high and sharp rise in interest rates we've been experiencing.

I think your correct though folks have to adjust to the new normal and the interest rates they are not coming down like folks hoped for I think we are in for a run of years were rates will be more like the 2000s  6 to 7% and Owner occ in the 5s with Maybe some high 4s. but by the time folks wait for that prices will rise in the better markets.

Some have a 20% down, but the rate rises significantly. 

Rising interest rates, slim margins, and unexpected costs can kill a deal fast.

From what I can tell, it seems like most of the very small towns in this area; tons of trailers, single family homes, no visible high rises or larger multifamily that I saw. 

However, Austin proper has a high barrier to entry due to the sharp rise in property values in recent years.

Have been tracking the news on insurance which surprisingly to me- is not expected to rise in Colorado, post the LA fires.

Much of the country is at high risk between fires, hurricanes, tornados, tidal waves, earth quakes, rising tides, etc.  

That helps some...but your variable expenses also go up too - property insurance & taxes - so a lot of your rent increases go to offset rising variable expenses.I started at the age of 47 in 2018 and we bought properties fast and furious - 12 the first year, 10 the next, and 9 in 2021 and currently have 38 properties. 

Some costs MAY qualify as startup costs if the rental rises to a qualifying trade or business level under 195 as well.