Austin Real Estate Market Analysis

Houses for Sale in Austin

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Austin is the capital city of the state of Texas. With a population of over 981,000 people, it is the 4th most populous city in Texas and the 11th most populous city in the US. The Austin real estate market benefits from the fact that the population growth rate in the city is over three times the national rate, as estimated by PWC. Thanks to a strong annual net migration, Austin is the fastest growing large city in the US. And with more than half of the population (54.8% according to NeighborhoodScout) renting rather than owning a home, Austin rental properties enjoy particularly high demand and occupancy rates.

Austin was recently named the #1 place to live in America by Forbes for the third year in a row, based on affordability, job prospects, and quality of life. Many people flock to the city hailed for having not only the best business climate, but also the best quality of life in Texas and a relatively low cost of living. In fact, Austin has a heavy concentration of highly educated millennials and enjoys a diverse economy that is mainly based on the government, education, and technology sectors which draws people in. 

Given the nickname “Silicon Hills”, Austin is a major center for high tech and innovation. It is home to nearly 6,500 high tech companies, including Apple Inc., Google, Facebook, Dell, Amazon, eBay, and many others. Apple Inc. has plans to open a new $1 billion campus in North Austin with the capacity for 15,000 employees, making it the largest private employer in the city. The University of Texas at Austin is a major contributor to the city’s economy, with thousands of Engineering and Computer Science graduates each year finding employment in the technology and defense industry sectors. Austin is also a recognized hub for startups and is one of the most significant cities in the US for entrepreneurship. It ranked #4 of the best large cities to start a business last year in WalletHub’s annual survey. Several federal agencies, including the US Federal Government, are based in the Austin area and are some of the largest employers in the city. Austin is also emerging as a hub for biomedical and pharmaceutical companies, with about 85 of such companies located there. Other major industries in Austin include telecommunications, manufacturing, electronics, food processing, and tourism. 



The Austin real estate market was named the 6th most important US Market to Watch by PWC in its annual Emerging Trends in Real Estate: United States and Canada 2019 report. According to the report, Austin is particularly attractive to real estate investors for its booming economy, demographic growth, and attractive cost structure. Despite the attractive affordability rates, a lack of affordable housing was listed as an issue, due to sheer demand. 

Austin  Real Estate Investment Performance

Facts and Market Trends in Austin
Homes For Sale1,954
Airbnb Properties5,695
Rental Properties1,616
Traditional Vacancy rate7.70%
Airbnb Occupancy Rate58.47%
Mashmeter26.83%
Median Price$599,000
Median Rent Price$2,823
Price/sqft$915
Median Days on Market40
Price to Rent Ratio30.1
Average Cap Rate
Airbnb2.58%
Traditional1.80%
Average Rental Income
Airbnb$3,481
Traditional$2,487
 
Median Household Income$86,530
Population964,177
Transportation in Austin
42 / 100
Car-Dependent
35 / 100
Some Transit
54 / 100
Bikeable
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Austin  Rent Prices

RENTAL STRATEGY STUDIOS 1 BEDROOM 2 BEDROOMS 3 BEDROOMS 4 BEDROOMS
Airbnb$1,991$2,063$2,921$4,129$5,536
Traditional$1,451$1,583$2,097$2,740$3,222

Austin, TX - Homes for Sale - Newly Listed

9012 Wampton WAY
Austin, TX 78749
West Oak Hill
Single Family Residential
4 beds3 baths2,380 sq.ft.
CAP RATE
Trad. 2.38%Airbnb 5.23%
8401 Spring Valley DR
Austin, TX 78736
West Oak Hill
Single Family Residential
3 beds2 baths1,282 sq.ft.
CAP RATE
Trad. 3.40%Airbnb 3.09%
8210 Bent Tree RD #241
Austin, TX 78759
North Shoal Creek
Condo/Coop
1 beds1 baths641 sq.ft.
CAP RATE
Trad. 5.15%Airbnb 3.27%
8528 Red Willow DR
Austin, TX 78736
West Oak Hill
Single Family Residential
3 beds3 baths1,565 sq.ft.
CAP RATE
Trad. 4.26%Airbnb 3.92%

Top Performing Austin Properties

5807 Pino Ln
Austin, TX 78744
Franklin Park
Single Family Residential
4 beds2 baths1,764 sq.ft.
CAP RATE
Trad. 3.45%Airbnb 7.91%
6226 Wagon Bnd
Austin, TX 78744
Franklin Park
Single Family Residential
4 beds2 baths1,349 sq.ft.
CAP RATE
Trad. 3.45%Airbnb 7.90%
12716 Monterey PATH
Austin, TX 78732
Barton Creek
Single Family Residential
4 beds4 baths2,764 sq.ft.
CAP RATE
Trad. 3.24%Airbnb 7.89%
2504 Biggs Dr
Austin, TX 78741
Parker Lane
Single Family Residential
3 beds2 baths1,094 sq.ft.
CAP RATE
Trad. 5.02%Airbnb 7.80%

Recently Sold Homes in Austin, TX

306 White Oak Dr
Austin, TX 78753
Georgian Acres
Multi Family
4 beds2 baths1,920 sq.ft.
CAP RATE
Trad. 2.79%Airbnb N/A
5801 Spring Meadow Rd
Austin, TX 78744
Mckinney
Multi Family
4 beds2 baths1,664 sq.ft.
CAP RATE
Trad. 2.25%Airbnb N/A
1315 Southport Dr
Austin, TX 78704
South Lamar
Multi Family
8 beds4 baths3,870 sq.ft.
CAP RATE
Trad. 0.77%Airbnb N/A
202 E Croslin St
Austin, TX 78752
Highland
Multi Family
2 beds2 baths1,000 sq.ft.
CAP RATE
Trad. 1.38%Airbnb N/A

Property Value Changes and Real Estate Appreciation in the Austin Housing Market

The Austin real estate market has witnessed a strong real estate appreciation in recent years. Since Q1 of 2000, Austin properties have experienced a total appreciation of 148.47% according to NeighborhoodScout, which is an average annual home appreciation rate of 4.84%. Property value is still climbing in the Austin housing market as Zillow reports an appreciation of 6% in 2018. The huge number of people and companies moving to Austin is behind this increase in home prices. Still, Austin home prices remain relatively affordable compared to other top markets in the US. That’s why buying an investment property in Austin makes for a good real estate investment.


The Austin housing market is currently a warm seller’s market. Housing inventory is low, while demand from homebuyers and real estate investors continues to rise as the population grows. This situation enables Austin real estate investors to enjoy high real estate appreciation.

Austin, TX Top Multi Family Homes

5200 Purple Sage Dr
Austin, TX 78724
University Hills
Multi Family
4 beds2 baths1,712 sq.ft.
CAP RATE
Trad. 3.58%Airbnb N/A
8100 Dowling CV
Austin, TX 78745
Garrison Park
Multi Family
0 beds0 baths2,360 sq.ft.
CAP RATE
Trad. 3.53%Airbnb N/A
9508 Parkfield
Austin, TX 78758
North Austin
Multi Family
4 beds2 baths1,823 sq.ft.
CAP RATE
Trad. 2.60%Airbnb N/A
904 Fieldwood DR
Austin, TX 78758
North Austin
Multi Family
0 beds0 baths1,976 sq.ft.
CAP RATE
Trad. 2.37%Airbnb N/A

Homes Below Median Price in the Austin, TX Real Estate Market

5807 Pino Ln
Austin, TX 78744
Franklin Park
Single Family Residential
4 beds2 baths1,764 sq.ft.
CAP RATE
Trad. 3.45%Airbnb 7.91%
6226 Wagon Bnd
Austin, TX 78744
Franklin Park
Single Family Residential
4 beds2 baths1,349 sq.ft.
CAP RATE
Trad. 3.45%Airbnb 7.90%
12716 Monterey PATH
Austin, TX 78732
Barton Creek
Single Family Residential
4 beds4 baths2,764 sq.ft.
CAP RATE
Trad. 3.24%Airbnb 7.89%
2504 Biggs Dr
Austin, TX 78741
Parker Lane
Single Family Residential
3 beds2 baths1,094 sq.ft.
CAP RATE
Trad. 5.02%Airbnb 7.80%

Austin Airbnb Growth and Regulations

The short-term rental industry in Austin has thrived in recent years. The city’s scenic parks, lakes, and famous music festivals pull in millions of tourists each year. Austin is by far the most popular destination for Airbnb rentals in Texas, with 30% of the 1.5 million arrivals in the state staying in Austin short-term rentals in 2017. 

In 2016, Austin passed a number of regulations for short-term rentals (STRs). The Airbnb regulations phase out and will ultimately outlaw non-owner occupied short-term rentals in residential areas, which are referred to as “Type 2 STRs”. The full ban on Type 2 STRs will come into effect by April 1, 2022. Therefore, to operate within the bounds of the new Airbnb Austin regulations, the owner of a short-term rental property must be on site during the guests’ stay: This type of rental is referred to as “Type 1 STR”. Another possibility is to operate a short-term rental that is part of a multi-family residence (“Type 3 STR”). 

Owners of short-term rentals are required by the city of Austin to obtain an operating license costing $500 and renew it annually for $300. This applies to all properties rented out for less than 30 consecutive days. The licensing process requires Airbnb hosts to pay Hotel Occupancy Taxes and also obtain a Certificate of Occupancy. 

The regulations also impose certain requirements for advertising, set requirements related to noise and music, set occupancy limits, prohibit certain types of gatherings, establish inspection-related requirements, and give city officials the authority to deny, suspend or revoke licenses if any of the rules are not followed.

Austin, TX Top Airbnb Homes

Entire home/apt · 1 bed
Cute Condo Close to Zilker & Dwntwn
1480
Entire home/apt · 1 bed
Vintage Airstream in East Austin, Texas
1142
Entire home/apt · 1 bed
Garden Cottage in East Austin
1030

Austin, TX Homes for Rent

6905 Campina XING
Austin, TX 78617
Southeast
Single Family
3 beds2 baths1,324 sq.ft.
360 Nueces St #1007
Austin, TX 78701
Downtown
Apartment
1 beds1 baths852 sq.ft.
3715 Robinson Ave
Austin, TX 78722
Upper Boggy Creek
Single Family
3 beds2 baths1,269 sq.ft.
2807 Del Curto RD #O
Austin, TX 78704
South Lamar
Apartment
3 beds3 baths1,976 sq.ft.

Austin, TX Open Houses

9012 Wampton WAY
Austin, TX 78749
West Oak Hill
Single Family Residential
4 beds3 baths2,380 sq.ft.
CAP RATE
Trad. 2.38%Airbnb 5.23%
8401 Spring Valley DR
Austin, TX 78736
West Oak Hill
Single Family Residential
3 beds2 baths1,282 sq.ft.
CAP RATE
Trad. 3.40%Airbnb 3.09%
8528 Red Willow DR
Austin, TX 78736
West Oak Hill
Single Family Residential
3 beds3 baths1,565 sq.ft.
CAP RATE
Trad. 4.26%Airbnb 3.92%
6409 Nusser LN
Austin, TX 78739
West Oak Hill
Single Family Residential
4 beds3 baths2,954 sq.ft.
CAP RATE
Trad. 1.02%Airbnb 2.96%

Best Austin Neighborhoods for Buying Investment Property

St. Edwards
Austin, TX
46%
Mashmeter
property price
649900
Median
cap rate
4.19%
Traditional
6.60%
Airbnb
rental income
$2,272
Traditional
$3,575
Airbnb
homes for sale
1
occupancy rate
56%
Airbnb
West University
Austin, TX
45%
Mashmeter
property price
315000
Median
cap rate
9.22%
Traditional
14.25%
Airbnb
rental income
$2,420
Traditional
$3,740
Airbnb
homes for sale
1
occupancy rate
61%
Airbnb
Pleasant Valley
Austin, TX
44%
Mashmeter
property price
348603
Median
cap rate
6.24%
Traditional
11.76%
Airbnb
rental income
$1,813
Traditional
$3,417
Airbnb
homes for sale
1
occupancy rate
59%
Airbnb
Riverside
Austin, TX
43%
Mashmeter
property price
335500
Median
cap rate
8.11%
Traditional
14.97%
Airbnb
rental income
$2,266
Traditional
$4,184
Airbnb
homes for sale
1
occupancy rate
61%
Airbnb
Johnston Terrace
Austin, TX
42%
Mashmeter
property price
399000
Median
cap rate
5.62%
Traditional
9.17%
Airbnb
rental income
$1,870
Traditional
$3,051
Airbnb
homes for sale
1
occupancy rate
58%
Airbnb
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