Austin Housing market
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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. 

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Austin  Real Estate Investment Performance
Facts and Market Trends in Austin
Homes For Sale
631
Airbnb Properties
2,204
Rental Properties
5,298
Traditional Vacancy rate
5.70%
Airbnb Occupancy Rate
60.64%
Mashmeter
68.68%
Median Price
$547,110
Median Rent Price
$2,059
Price/sqft
$286
Median Days on Market
76
Price to Rent Ratio
22.1
Average Cap Rate
Airbnb
2.92%
Traditional
0.66%
Average Rental Income
Airbnb
$3,513
Traditional
$2,061
 
Median Household Income
$55,216
Population
950,715
Transportation in Austin
40 / 100
Car-Dependent
34 / 100
Some Transit
51 / 100
Bikeable
Austin  Rent Prices
RENTAL STRATEGY STUDIOS 1 ROOM 2 ROOMS 3 ROOMS 4 ROOMS
Airbnb$1,789$1,971$2,421$3,559$4,910
Traditional$989$1,104$1,469$2,075$2,541
Austin, TX - Homes for Sale - Newly Listed
Investment Properties for Sale
$142,600
MLS
14503 Menifee St
Austin, TX 78725
Johnston Terrace
Single Family Residential
0 beds2 baths1,274 sq.ft.
CAP RATE
Trad. 0.97%Airbnb 2.64%
Investment Properties for Sale
$299,000
MLS 2218643
9014 Palace PKWY
Austin, TX 78748
Garrison Park
Single Family Residential
4 beds2 baths1,401 sq.ft.
CAP RATE
Trad. 2.02%Airbnb 7.66%
Investment Properties for Sale
$450,000
MLS 9051499
4835 Calhoun Canyon LOOP
Austin, TX 78735
East Oak Hill
Single Family Residential
3 beds2 baths1,789 sq.ft.
CAP RATE
Trad. -0.19%Airbnb 1.24%
Investment Properties for Sale
$699,000
MLS 2856169
1615 S 2nd ST #3
Austin, TX 78704
Bouldin
Single Family Residential
2 beds3 baths1,696 sq.ft.
CAP RATE
Trad. -0.29%Airbnb 1.63%
Top Performing Austin Properties
Investment Properties for Sale
$414,500
MLS 7167752
11613 Sherwood FRST
Austin, TX 78759
Gateway
Single Family Residential
3 beds2 baths1,654 sq.ft.
CAP RATE
Trad. -0.11%Airbnb 7.92%
Investment Properties for Sale
$299,000
MLS 2218643
9014 Palace PKWY
Austin, TX 78748
Garrison Park
Single Family Residential
4 beds2 baths1,401 sq.ft.
CAP RATE
Trad. 2.02%Airbnb 7.66%
Investment Properties for Sale
$189,500
MLS 4435675
3109 Caleb DR
Austin, TX 78725
Johnston Terrace
Single Family Residential
3 beds2 baths1,371 sq.ft.
CAP RATE
Trad. 4.56%Airbnb 7.58%
Investment Properties for Sale
$189,900
MLS 9734736
14505 Amy Francis St
Austin, TX 78725
Johnston Terrace
Single Family Residential
3 beds2 baths1,178 sq.ft.
CAP RATE
Trad. 4.43%Airbnb 7.52%
Recently Sold Homes in Austin, TX
Investment Properties for Sale
$259,900
MLS 3620623
5111 Brookdale LN
Austin, TX 78723
Windsor Park
Single Family Residential
3 beds1 baths1,288 sq.ft.
CAP RATE
Trad. 1.01%Airbnb 4.13%
Investment Properties for Sale
$875,000
MLS 6749714
6109 Highlandale DR
Austin, TX 78731
Allandale
Single Family Residential
4 beds3 baths3,070 sq.ft.
CAP RATE
Trad. 0.80%Airbnb 1.27%
Investment Properties for Sale
$700,000
MLS 4975060
8522 Sweet Cherry DR
Austin, TX 78750
Gateway
Single Family Residential
4 beds3 baths3,137 sq.ft.
CAP RATE
Trad. -0.44%Airbnb 0.47%
Investment Properties for Sale
$875,000
MLS 1477825
407 Ridgewood RD
Austin, TX 78746
Old West Austin
Single Family Residential
2 beds2 baths1,631 sq.ft.
CAP RATE
Trad. -1.14%Airbnb -0.23%
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
Investment Properties for Sale
$265,000
MLS 384632
6808 Blue Dawn Trail
Austin, TX 78744
Franklin Park
Multi Family
0 beds0 baths1,784 sq.ft.
CAP RATE
Trad. 1.70%Airbnb N/A
Investment Properties for Sale
$260,000
MLS 5089622
705 Valdez ST
Austin, TX 78741
Montopolis
Multi Family
0 beds0 baths1,318 sq.ft.
CAP RATE
Trad. 1.64%Airbnb N/A
Investment Properties for Sale
$335,000
MLS 4761561
7501 Tumbleweed DR
Austin, TX 78724
University Hills
Multi Family
0 beds0 baths2,133 sq.ft.
CAP RATE
Trad. 1.14%Airbnb N/A
Investment Properties for Sale
$255,900
MLS 9995415
4409 Teri RD
Austin, TX 78744
Franklin Park
Multi Family
0 beds0 baths1,879 sq.ft.
CAP RATE
Trad. 0.94%Airbnb N/A
Homes Below Median Price in the Austin, TX Real Estate Market
Investment Properties for Sale
$414,500
MLS 7167752
11613 Sherwood FRST
Austin, TX 78759
Gateway
Single Family Residential
3 beds2 baths1,654 sq.ft.
CAP RATE
Trad. -0.11%Airbnb 7.92%
Investment Properties for Sale
$299,000
MLS 2218643
9014 Palace PKWY
Austin, TX 78748
Garrison Park
Single Family Residential
4 beds2 baths1,401 sq.ft.
CAP RATE
Trad. 2.02%Airbnb 7.66%
Investment Properties for Sale
$189,500
MLS 4435675
3109 Caleb DR
Austin, TX 78725
Johnston Terrace
Single Family Residential
3 beds2 baths1,371 sq.ft.
CAP RATE
Trad. 4.56%Airbnb 7.58%
Investment Properties for Sale
$189,900
MLS 9734736
14505 Amy Francis St
Austin, TX 78725
Johnston Terrace
Single Family Residential
3 beds2 baths1,178 sq.ft.
CAP RATE
Trad. 4.43%Airbnb 7.52%
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
Austin Airbnb
$87 per night
Entire home/apt · 1 bed
Backyard Cottage in Central Austin
851
Austin Airbnb
$134 per night
Austin Airbnb
$82 per night
Entire home/apt · 1 bed
South Congress Studio Apartment
678
Austin Airbnb
$112 per night
Entire home/apt · 1 bed
Downtown Austin Texas Condo
655
Austin, TX Homes for Rent
Investment Properties for Sale
$1,300
MLS 2780337
4900 W Wind TRL #102
Austin, TX
West Gate
Multi Family
2 beds2 baths3,612 sq.ft.
Investment Properties for Sale
$1,700
MLS 2366590
12704 Margit DR
Austin, TX
Gateway
Single Family
4 beds3 baths1,660 sq.ft.
Investment Properties for Sale
$1,895
MLS 9027769
10504 Little Pebble DR #A
Austin, TX
North Burnett
Multi Family
3 beds2 baths1,058 sq.ft.
Investment Properties for Sale
$3,100
MLS 7072909
9508 Hopeland DR
Austin, TX
West Oak Hill
Single Family
4 beds3 baths2,779 sq.ft.
Austin, TX Open Houses
Investment Properties for Sale
Open 1 PM to 3 PM
$469,000
MLS 8168014
6516 Nusser LN
Austin, TX 78739
West Oak Hill
Single Family Residential
4 beds2 baths2,206 sq.ft.
CAP RATE
Trad. 1.15%Airbnb 3.58%
Investment Properties for Sale
Open 2 PM to 4 PM
$649,999
MLS 5320016
126 Blazing Star DR
Austin, TX 78737
West Oak Hill
Single Family Residential
4 beds4 baths4,503 sq.ft.
CAP RATE
Trad. -0.41%Airbnb 1.34%
Investment Properties for Sale
Open 12 PM to 2 PM
$330,000
MLS 6697305
8510 Brock CIR
Austin, TX 78745
Garrison Park
Single Family Residential
3 beds3 baths1,844 sq.ft.
CAP RATE
Trad. 0.54%Airbnb 0.70%
Investment Properties for Sale
Open 2 PM to 4 PM
$1,495,000
MLS 6921663
3303 Bonnie RD
Austin, TX 78703
Windsor Road
Single Family Residential
4 beds4 baths2,821 sq.ft.
CAP RATE
Trad. -1.22%Airbnb 3.07%
Best Austin Neighborhoods for Buying Investment Property
72%
Mashmeter
property price
$472,900
Median
cap rate
5.98%
Traditional
12.11%
Airbnb
rental income
$2,356
Traditional
$4,772
Airbnb
homes for sale
9
occupancy rate
67%
Airbnb
71%
Mashmeter
property price
$442,000
Median
cap rate
6.11%
Traditional
13.71%
Airbnb
rental income
$2,249
Traditional
$5,050
Airbnb
homes for sale
4
occupancy rate
66%
Airbnb
71%
Mashmeter
property price
$424,900
Median
cap rate
6.05%
Traditional
13.56%
Airbnb
rental income
$2,144
Traditional
$4,802
Airbnb
homes for sale
3
occupancy rate
71%
Airbnb
68%
Mashmeter
property price
$379,900
Median
cap rate
5.67%
Traditional
13.29%
Airbnb
rental income
$1,795
Traditional
$4,208
Airbnb
homes for sale
7
occupancy rate
66%
Airbnb
68%
Mashmeter
property price
$715,000
Median
cap rate
4.56%
Traditional
7.73%
Airbnb
rental income
$2,716
Traditional
$4,608
Airbnb
homes for sale
11
occupancy rate
63%
Airbnb
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