Property investors in the Austin real estate market get ready for another great year for property investing! The Emerging Trends in Real Estate report’s forecast for 2018 ranked Austin second on the list of U.S. cities with the most positive real estate market outlook. So, whether you’re a beginner real estate investor looking to buy your first investment property, or an experienced real estate investor searching for your next investment property to grow your real estate investment portfolio, you should definitely consider investing in the Austin real estate market.
In this guide, we’re going to explore what makes Austin one of the hottest real estate markets to invest in – especially in Airbnb investment properties. In addition, we’ll provide a list of the best neighborhoods in Austin real estate market in which real estate investors should consider buying an investment property, as calculated by Mashvisor’s Investment Property Calculator.
Related: Mashvisor’s Investment Property Calculator: Real Estate Investing Made Easier
What Makes Austin Real Estate a Hot Investing Market?
The majority of the Austin real estate market’s strength is owed to the city’s thriving economy. Employment rates are rising and job growth rates are expected to reach 3.6%, while unemployment rates have also improved by 3.4%
This positive economic and employment outlook contributes to the population growth as more employees and people who need jobs are attracted to the city. Austin is one of the fastest growing cities in the country, and experts expect that population will continue to grow throughout 2018 and into the next few years.
The increasing population has created more demand for the Austin real estate market. With more and more people looking for places to live, this is a great opportunity for real estate investors thinking of buying an investment property and renting it out. This is also a good time for real estate investors to sell their investment properties, whether single-family homes or multi-family homes, as there are plenty of buyers ready to make a purchase.
Click Here to find the best investment properties in the Austin real estate market!
Related: Is the 2018 US Housing Market a Seller’s Market or a Buyer’s Market?
Now that we’ve covered why Austin real estate is a hot investing market in 2018, let’s talk numbers! Here’s a quick summary of the Austin real estate market as computed by Mashvisor’s investment property calculator, in addition to a list of the best neighborhoods in the city in which real estate investors should buy an investment property, especially an Airbnb investment property!
A Quick Summary of Austin Real Estate Market
- Median Property Price: $474,144
- Traditional Rental Income: $2,006
- Airbnb Rental Income: $2,768
- Traditional Cash on Cash Return: 1.03%
- Airbnb Cash on Cash Return: 2.17%
- Traditional Cap Rate: 1.03%
- Airbnb Cap Rate: 2.17%
The Best Neighborhoods in Austin Real Estate Market
Austin Real Estate Market – Downtown
- Median Property Price: $730,975
- Traditional Rental Income: $2,224
- Airbnb Rental Income: $3,054
- Traditional Cash on Cash Return: -0.04%
- Airbnb Cash on Cash Return: 0.88%
- Traditional Cap Rate: -0.04%
- Airbnb Cap Rate: 0.88%
- Occupancy Rate: 44.65%
Austin Real Estate Market – Old West Austin
- Median Property Price: $507,000
- Traditional Rental Income: $1,931
- Airbnb Rental Income: $3,359
- Traditional Cash on Cash Return: -0.02%
- Airbnb Cash on Cash Return: 2.88%
- Traditional Cap Rate: -0.02%
- Airbnb Cap Rate: 2.88%
- Occupancy Rate: 52.71%
Austin Real Estate Market – Holly
- Median Property Price: $344,000
- Traditional Rental Income: $1,759
- Airbnb Rental Income: $2,980
- Traditional Cash on Cash Return: 1.39%
- Airbnb Cash on Cash Return: 3.46%
- Traditional Cap Rate: 1.39%
- Airbnb Cap Rate: 3.46%
- Occupancy Rate: 51.20%
Austin Real Estate Market – Central East Austin
- Median Property Price: $489,450
- Traditional Rental Income: $2,084
- Airbnb Rental Income: $3,910
- Traditional Cash on Cash Return: 0.57%
- Airbnb Cash on Cash Return: 3.65%
- Traditional Cap Rate: 0.57%
- Airbnb Cap Rate: 3.65%
- Occupancy Rate: 52.74%
Austin Real Estate Market – Brentwood
- Median Property Price: $445,000
- Traditional Rental Income: $1,845
- Airbnb Rental Income: $2,301
- Traditional Cash on Cash Return: 0.87%
- Airbnb Cash on Cash Return: 1.67%
- Traditional Cap Rate: 0.87%
- Airbnb Cap Rate: 1.67%
- Occupancy Rate: 38.43%
Austin Real Estate Market – Zilker
- Median Property Price: $979,000
- Traditional Rental Income: $2,392
- Airbnb Rental Income: $2,626
- Traditional Cash on Cash Return: -0.07%
- Airbnb Cash on Cash Return: 0.34%
- Traditional Cap Rate: -0.07%
- Airbnb Cap Rate: 0.34%
- Occupancy Rate: 50.50%
Austin Real Estate Market – Mueller
- Median Property Price: $625,000
- Traditional Rental Income: $2,212
- Airbnb Rental Income: $3,991
- Traditional Cash on Cash Return: -0.26%
- Airbnb Cash on Cash Return: 2.05%
- Traditional Cap Rate: -0.26%
- Airbnb Cap Rate: 2.05%
- Occupancy Rate: 56.45%
Austin Real Estate Market – East Cesar Chavez
- Median Property Price: $604,500
- Traditional Rental Income: $1,699
- Airbnb Rental Income: $3,545
- Traditional Cash on Cash Return: -0.1%
- Airbnb Cash on Cash Return: 3.11%
- Traditional Cap Rate: -0.1%
- Airbnb Cap Rate: 3.11%
- Occupancy Rate: 52.14%
Austin Real Estate Market – Bouldin
- Median Property Price: $790,000
- Traditional Rental Income: $2,692
- Airbnb Rental Income: $3,090
- Traditional Cash on Cash Return: 0.21%
- Airbnb Cash on Cash Return: 1.02%
- Traditional Cap Rate: 0.21%
- Airbnb Cap Rate: 1.02%
- Occupancy Rate: 48.64%
Sign up for Mashvisor now to get access to our investment property calculator as well as other real estate investment tools to help you buy the best Austin real estate market investment properties.
Austin Real Estate Market – Conclusion
As you can tell, investing in Airbnb investment properties will yield a higher return on investment than traditional investment properties! Why so? Well, Austin is known for its eclectic live-music festivals, its many parks and lakes which are popular for hiking, biking, swimming and boating, and other many tourists’ attractions!
Click Here to find the best Airbnb rental properties in the Austin real estate market!
The above-mentioned neighborhoods are those in which real estate investors will find investment properties in the Austin real estate market, as calculated by Mashvisor’s investment property calculator.
Related: Real Estate Investing for Beginners: How to Find Investment Properties for Sale?
Mashvisor provides real estate investors with real estate investment data analysis including analysis of Traditional and Airbnb pricing, occupancy rates, cash on cash return, cap rates, and more. Sign up to use Mashvisor’s Investment Property Calculator to find and analyze thousands of real estate investment properties on the market in any state, city, and neighborhood in the U.S housing market within minutes!
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