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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
740
Airbnb Properties
2,289
Rental Properties
5,836
Traditional Vacancy rate
5.70%
Airbnb Occupancy Rate
63.00%
Mashmeter
68.93%
Median Price
$533,712
Median Rent Price
$1,990
Price/sqft
$270
Median Days on Market
68
Price to Rent Ratio
21.7
Average Cap Rate
Airbnb
3.22%
Traditional
0.64%
Average Rental Income
Airbnb
$3,582
Traditional
$2,050
 
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$1,869$1,997$2,483$3,761$5,093
Traditional$994$1,106$1,458$2,060$2,551
Austin, TX - Homes for Sale - Newly Listed
$389,000
MLS 2653993
2214 Gardenia DR
Austin, TX 78727
Wells Branch
Single Family Residential
4 beds1 baths1,152 sq.ft.
CAP RATE
Trad. 2.02%Airbnb 5.83%
$429,900
MLS 3563696
309 E 38 ST #2
Austin, TX 78705
North University
Condo/Coop
2 beds2 baths850 sq.ft.
CAP RATE
Trad. 0.37%Airbnb 5.26%
$539,990
MLS 385644
1411 Waterloo Shore Lane #13
Austin, TX 78741
Riverside
Single Family Residential
3 beds4 baths1,717 sq.ft.
CAP RATE
Trad. -0.61%Airbnb 0.30%
$269,000
MLS 5777540
7902 Woodcroft DR
Austin, TX 78749
Garrison Park
Single Family Residential
3 beds2 baths1,322 sq.ft.
CAP RATE
Trad. 1.53%Airbnb 3.79%
Top Performing Austin Properties
$215,000
MLS 4261704
2416 Kale DR
Austin, TX 78725
Montopolis
Single Family Residential
3 beds2 baths1,420 sq.ft.
CAP RATE
Trad. 2.87%Airbnb 7.97%
$219,900
MLS 5880426
5711 China Berry RD
Austin, TX 78744
Mckinney
Single Family Residential
3 beds3 baths1,286 sq.ft.
CAP RATE
Trad. 2.57%Airbnb 7.90%
$240,000
MLS 5888246
4714 Lake George LN #188
Austin, TX 78754
Coronado Hills
Condo/Coop
3 beds2 baths1,613 sq.ft.
CAP RATE
Trad. 1.12%Airbnb 7.84%
$119,900
MLS 7315810
1840 Burton DR #100
Austin, TX 78741
Riverside
Condo/Coop
1 beds1 baths378 sq.ft.
CAP RATE
Trad. 0.82%Airbnb 7.83%
Recently Sold Homes in Austin, TX
$325,000
MLS 2828672
11455 Ptarmigan DR
Austin, TX 78758
North Burnett
Multi Family
0 beds0 baths1,870 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$769,500
MLS 5301410
710 Augusta A
Austin, TX 78703
Old West Austin
Multi Family
2 beds3 baths1,710 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$750,000
MLS 8251547
3903 Bailey LN
Austin, TX 78756
Triangle State
Multi Family
0 beds0 baths1,877 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$275,000
MLS 384632
6808 Blue Dawn Trail
Austin, TX 78744
Franklin Park
Multi Family
0 beds0 baths1,784 sq.ft.
CAP RATE
Trad. N/AAirbnb 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
$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
$299,900
MLS 2133151
5208 Rogers LN
Austin, TX 78724
MLK 183
Multi Family
0 beds0 baths1,536 sq.ft.
CAP RATE
Trad. 1.27%Airbnb N/A
$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
$244,900
MLS 6325700
7514 Bethune AVE
Austin, TX 78752
St. Johns
Multi Family
0 beds0 baths1,506 sq.ft.
CAP RATE
Trad. 0.80%Airbnb N/A
Homes Below Median Price in the Austin, TX Real Estate Market
$215,000
MLS 4261704
2416 Kale DR
Austin, TX 78725
Montopolis
Single Family Residential
3 beds2 baths1,420 sq.ft.
CAP RATE
Trad. 2.87%Airbnb 7.97%
$219,900
MLS 5880426
5711 China Berry RD
Austin, TX 78744
Mckinney
Single Family Residential
3 beds3 baths1,286 sq.ft.
CAP RATE
Trad. 2.57%Airbnb 7.90%
$240,000
MLS 5888246
4714 Lake George LN #188
Austin, TX 78754
Coronado Hills
Condo/Coop
3 beds2 baths1,613 sq.ft.
CAP RATE
Trad. 1.12%Airbnb 7.84%
$119,900
MLS 7315810
1840 Burton DR #100
Austin, TX 78741
Riverside
Condo/Coop
1 beds1 baths378 sq.ft.
CAP RATE
Trad. 0.82%Airbnb 7.83%
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
$88 per night
Entire home/apt · 1 bed
Backyard Cottage in Central Austin
823
$134 per night
Entire home/apt · 1 bed
The SoCo Cottage-South Congress
693
$84 per night
Entire home/apt · 1 bed
South Congress Studio Apartment
664
$111 per night
Entire home/apt · 1 bed
Downtown Austin Texas Condo
647
Austin, TX Homes for Rent
$1,900
MLS 1796422
515 Pecan Grove RD #B
Austin, TX
South River City
Multi Family
1 beds1 baths630 sq.ft.
$1,900
MLS 3980162
515 Pecan Grove RD #A
Austin, TX
South River City
Multi Family
1 beds1 baths620 sq.ft.
$2,200
MLS 6755153
618 W 35th ST #A
Austin, TX
North University
Single Family
2 beds1 baths1,302 sq.ft.
$1,695
MLS 4990227
12904 Meehan DR
Austin, TX
Wells Branch
Single Family
3 beds2 baths1,088 sq.ft.
Austin, TX Open Houses
Open 1 PM to 4 PM
$219,000
MLS 3454738
2420 Kale DR
Austin, TX 78725
Montopolis
Single Family Residential
3 beds2 baths1,277 sq.ft.
CAP RATE
Trad. 2.76%Airbnb 7.79%
Open 2 PM to 5 PM
$219,000
MLS 3623852
6923 Ten Oaks CIR
Austin, TX 78744
Franklin Park
Single Family Residential
4 beds3 baths1,960 sq.ft.
CAP RATE
Trad. 2.28%Airbnb 5.40%
Open 10 AM to 12:30 PM
$285,000
MLS 5102815
1304 Turtle Creek BLVD
Austin, TX 78745
Garrison Park
Single Family Residential
3 beds2 baths1,016 sq.ft.
CAP RATE
Trad. 1.39%Airbnb 3.52%
Open 1 PM to 3 PM
$489,000
MLS 9417271
10409 Foxglove CT
Austin, TX 78739
West Oak Hill
Single Family Residential
4 beds3 baths2,533 sq.ft.
CAP RATE
Trad. 0.81%Airbnb 2.58%
Best Austin Neighborhoods for Buying Investment Property
71%
Mashmeter
property price
$535,000
Median
cap rate
4.69%
Traditional
11.39%
Airbnb
rental income
$2,091
Traditional
$5,077
Airbnb
homes for sale
5
occupancy rate
68%
Airbnb
72%
Mashmeter
property price
$487,200
Median
cap rate
5.80%
Traditional
11.55%
Airbnb
rental income
$2,356
Traditional
$4,689
Airbnb
homes for sale
6
occupancy rate
69%
Airbnb
72%
Mashmeter
property price
$429,900
Median
cap rate
5.27%
Traditional
13.69%
Airbnb
rental income
$1,888
Traditional
$4,906
Airbnb
homes for sale
5
occupancy rate
72%
Airbnb
82%
Mashmeter
property price
$309,000
Median
cap rate
7.98%
Traditional
19.66%
Airbnb
rental income
$2,056
Traditional
$5,061
Airbnb
homes for sale
5
occupancy rate
70%
Airbnb
80%
Mashmeter
property price
$430,000
Median
cap rate
4.75%
Traditional
11.97%
Airbnb
rental income
$1,701
Traditional
$4,291
Airbnb
homes for sale
4
occupancy rate
71%
Airbnb
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