Forbes has dubbed the Austin real estate market 2018 one of the “booming real estate markets” that are trending this year. As a real estate investor, you’re probably wondering “Is now really a good time to invest in Austin real estate?”.
Despite the talk of rising investment property prices and the term “seller’s market” scaring off novices of real estate investing, we’re here to tell you that now is definitely the best time to buy a house for real estate investing in Austin, TX.
Real estate investments are always a good idea, sure. But there are real reasons why now is the time to invest in Austin real estate, and we can tell you what they are. Stick around to the end of the post where we name the best neighborhoods in Austin for both traditional and Airbnb real estate investing!
The Austin Real Estate Market 2018 and Its Outstanding Economy
Successful real estate investors know that a stable economy = a stable real estate market. So, what does the #1 economy in the US mean for real estate investing? Only great things. A recent study outlined in the POLICOM report 2018 listed Austin, TX as the number one metropolitan economy in the country. While based on many factors, the diversified economy and the amount of money flowing into the city were major influencers.
Why invest in the Austin real estate market 2018 NOW?
What does this mean for current and future Austin real estate investors? It makes for the success of an Austin investment property. Take a look at the POLICOM report; what you’ll see is not only did Austin, TX rank #1 two years in a row but for the past few years it’s been in the top five. Austin real estate investors can rest assured that investment properties in this real estate market will be propped up by the previous and future success of a strong and thriving economy. There are no tribulations for Austin real estate investors to worry about when it comes to this aspect.
But why invest in the Austin real estate market 2018 now? As a real estate investor, you have to think of the future of your investment properties. An Austin real estate investor will enjoy years of making money in the Austin economy. Keep waiting, and the money-making opportunities in Austin real estate will keep passing you by!
Besides this, a lot of the reasons to follow are connected to the great economy and are real drivers for investing now in the Austin real estate market 2018.
People Are Flooding into the Austin Real Estate Market 2018
The #1 economy brings with it massive amounts of population growth for the Austin real estate market 2018. As of the beginning of 2018, Austin was seeing a net growth of 150 people per day! Experts are expecting the city to double in population growth over the next 40 years. By 2020, Austin is projected to beat out San Antonio for the 7th place for the most populous cities in the US (currently, the city sits in the 11th place). Because of this, Austin investment property will be in even higher demand as we move forward in 2018 and beyond.
Why invest in the Austin real estate market 2018 NOW?
First and foremost, if you get into an Austin investment property right now, you can get ahead of the curb and take advantage of the increasing demand as it happens from the start. Increased demand, of course, means you can charge more and earn more rental income from an Austin real estate investment.
Take advantage of the rising demand for Austin investment properties. Click here to start looking for and analyzing the best investment properties in Austin, TX.
That’s not all increased demand will lead to in the Austin real estate market 2018. The construction of new Austin investment properties will not be able to catch up with the growing population. The demand for Austin real estate will trump the supply, which now stands at 2.1 months. So, Austin real estate investment property prices will keep rising until the supply can catch up, which it won’t do for what seems to be a very long time.
In fact, according to Zillow, investment property prices are forecast to rise 4.2% in 2018, and it could be even more than that by the end of the year. If you buy an Austin real estate investment now, you’ll benefit in two major ways:
- Take advantage of the relatively affordable prices in the Austin real estate market 2018 (compared to other hot real estate markets) as they stand now
- Benefit from quick real estate appreciation with an Austin real estate investment
The rising prices of Austin investment property also mean more people will likely be renting rather than buying, especially in the urban areas of the city. This is mostly due to the fact that the growth rate of Austin investment property prices is greater than income growth rates, again, allowing demand to increase even more and prices to rise for both investment properties and rental income.
Speaking of Affordability, Mortgage Rates Are on the Rise
Mortgage rates will also be increasing as the year pushes forward. Most real estate investors buying investment property depend on a mortgage loan to get into the Austin real estate market.
Related: Where to Invest in Real Estate for Affordable Investment Properties
Why invest in the Austin real estate market 2018 NOW?
If you have any intention to invest in Austin real estate this year, mortgage rates might make you put your plans off. That is if you wait any longer than right now. Mortgage rates are increasing. If you plan on getting your investment property financing from a traditional bank loan, getting a fixed rate now will better secure your chances of making more net rental income in the future, resulting in a positive cash flow property.
On the plus side, this will likely increase the ratio of renters to buyers in the Austin real estate market 2018. Act now, invest in Austin real estate, and you won’t be sorry.
We NEED to Talk About Airbnb Austin
A long term Austin real estate investment is a great idea for 2018, but what about an Airbnb Austin real estate investment? In 2017, Austin, TX was the leading city in Airbnb revenue for the entire state. Airbnb Austin hosts racked up $19 million in revenue, from the statewide total of $56.5 million from June to August of last year!
Related: 4 Reasons to Buy Airbnb Investment Property in Austin
Why invest in the Austin real estate market 2018 NOW?
While 2017 did really well, real estate experts are predicting the Airbnb Austin real estate market 2018 will do even better. In fact, Airbnb Austin is projected to become a $200 million-a-year industry as it keeps up this pace. With major events like the SXSW and Austin City Limits music festivals, Austin Airbnb hosts are bringing in $1,000 a night during “on seasons.”
Even during “off seasons”, the warm weather, music, food, and art scenes bring high Airbnb occupancy rate and Airbnb rental income to Austin hosts. With rising prices and mortgage rates, and the festival season on the horizon, right now is the ideal time to invest in Airbnb Austin real estate.
Find the best Airbnb Austin investment properties now. Click here to start your investment property search the right way.
The Best Neighborhoods in Austin for Real Estate Investing
The ability to act fast and buy investment property relies heavily on knowing exactly where to invest in real estate. You know to invest in the Austin real estate market 2018, but we want to help you take it a step further. With Mashvisor’s investment calculator, we compiled a list of the best neighborhoods in Austin for both traditional and Airbnb real estate investing. To learn more about Mashvisor’s investment calculator, click here.
Take a look:
The Best Neighborhoods in Austin for Airbnb Real Estate Investing
Garrison Park
- Median House Price: $319,000
- Monthly Airbnb Rental Income: $2,831
- Airbnb Cash on Cash Return: 4.65%
- Airbnb Cap Rate: 4.65%
- Airbnb Occupancy Rate: 47.07%
Windsor Hills
- Median House Price: $250,000
- Monthly Airbnb Rental Income: $2,570
- Airbnb Cash on Cash Return: 3.88%
- Airbnb Cap Rate: 3.88%
- Airbnb Occupancy Rate: 38.8%
Wells Branch
- Median House Price: $299,450
- Monthly Airbnb Rental Income: $2,281
- Airbnb Cash on Cash Return: 2.81%
- Airbnb Cap Rate: 2.81%
- Airbnb Occupancy Rate: 31.14%
East Oak Hill
- Median House Price: $512,000
- Monthly Airbnb Rental Income: $3,117
- Airbnb Cash on Cash Return: 1.96%
- Airbnb Cap Rate: 1.96%
- Airbnb Occupancy Rate: 39.5%
Barton Creek
- Median House Price: $937,000
- Monthly Airbnb Rental Income: $5,394
- Airbnb Cash on Cash Return: 1.88%
- Airbnb Cap Rate: 1.88%
- Airbnb Occupancy Rate: 40.76%
The Best Neighborhoods in Austin for Traditional Real Estate Investing
West Oak Hill
- Median Property Price: $450,000
- Monthly Traditional Rental Income: $1,956
- Traditional Cash on Cash Return: 1.2%
- Traditional Cap Rate: 1.2%
Garrison Park
- Median Property Price: $319,000
- Monthly Traditional Rental Income: $1,514
- Traditional Cash on Cash Return: 0.63%
- Traditional Cap Rate: 0.63%
Windsor Hills
- Median Property Price: $250,000
- Monthly Traditional Rental Income: $1,375
- Traditional Cash on Cash Return: 0.53%
- Traditional Cap Rate: 0.53%
Want this kind of helpful insight into other US real estate markets? Then you need Mashvisor. To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.
It would seem that the better strategy for an Austin real estate investment is the Airbnb rental strategy. The return on investment for Airbnb Austin is much higher. However, that is not to say that you cannot find success and a good return on investment with a traditional rental strategy.
Now is the time to invest in Austin real estate. Benefit from increasing rental demand and real estate appreciation, and get into the game before mortgage rates go up! Choose any one of the best neighborhoods in Austin from the list above, and use Mashvisor to find the best Austin investment property right now.
