Mashvisor Home

Discover

Austin

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 Realtors and Real Estate Agents

Select agents


Austin  Real Estate Investment Performance
Facts and Market Trends in Austin
Homes For Sale349
Airbnb Properties1,410
Rental Properties3,023
Traditional Vacancy rate9.90%
Airbnb Occupancy Rate53.25%
Mashmeter68.94%
Median Price$549,900
Median Rent Price$1,973
Price/sqft$350
Median Days on Market54
Price to Rent Ratio30.1
Average Cap Rate
Airbnb2.95%
Traditional0.84%
Average Rental Income
Airbnb$3,715
Traditional$1,937
 
Median Household Income$55,216
Population950,715
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$1,318$1,523$2,238$3,053$4,704
Traditional$1,104$1,089$1,398$2,088$2,542
Austin, TX - Homes for Sale - Newly Listed
$749,900
MLS 9392073
1202 NORTH ST
Austin, TX 78756
Brentwood
Single Family Residential
3 beds2 baths1,366 sq.ft.
CAP RATE
Trad. -0.11%Airbnb 3.77%
$565,000
MLS 1337585
1122 Colorado ST #2103
Austin, TX 78701
Downtown
Condo/Coop
1 beds1 baths895 sq.ft.
CAP RATE
Trad. 0.86%Airbnb -0.46%
$750,000
MLS 9430492
4400 Night Owl LN
Austin, TX 78723
Pecan Springs Springdale
Condo/Coop
4 beds3 baths2,537 sq.ft.
CAP RATE
Trad. 0.76%Airbnb 0.92%
$435,000
MLS 436597
2405 Campden Drive
Austin, TX 78745
Garrison Park
Single Family Residential
3 beds2 baths1,119 sq.ft.
CAP RATE
Trad. 1.48%Airbnb 4.80%
Top Performing Austin Properties
$295,000
MLS 4515319
5640 Brougham WAY
Austin, TX 78754
Windsor Hills
Single Family Residential
4 beds3 baths2,088 sq.ft.
CAP RATE
Trad. 3.54%Airbnb 7.96%
$400,000
MLS 1102849
8829 White Ibis DR
Austin, TX 78729
Wells Branch
Single Family Residential
4 beds3 baths2,416 sq.ft.
CAP RATE
Trad. 2.08%Airbnb 7.93%
$975,000
MLS 4374260
3201 Cherrywood RD
Austin, TX 78722
Upper Boggy Creek
Condo/Coop
4 beds4 baths2,426 sq.ft.
CAP RATE
Trad. 0.79%Airbnb 7.89%
$749,000
MLS 2178131
14415 Cochise TRL
Austin, TX 78734
Barton Creek
Single Family Residential
4 beds3 baths2,800 sq.ft.
CAP RATE
Trad. 2.51%Airbnb 7.84%
Recently Sold Homes in Austin, TX
$455,464
MLS 142208062
11512 Sandy Loam Trail
Anderson Mill, TX 78750
Anderson Mill
Single Family Residential
3 beds2 baths1,475 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$530,000
MLS 3371265
4408 SCOTTSDALE RD
Austin, TX 78721
MLK 183
Multi Family
0 beds0 baths1,600 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$629,000
MLS 3471678
912 Philco DR #A & B
Austin, TX 78745
South Manchaca
Multi Family
0 beds0 baths2,225 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$600,000
MLS 9358521
10212 Brownie DR
Austin, TX 78753
North Lamar
Multi Family
0 beds0 baths3,120 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
$630,000
MLS 7807872
3510 Southridge DR
Austin, TX 78704
South Lamar
Multi Family
0 beds0 baths1,750 sq.ft.
CAP RATE
Trad. 0.42%Airbnb N/A
Homes Below Median Price in the Austin, TX Real Estate Market
$295,000
MLS 4515319
5640 Brougham WAY
Austin, TX 78754
Windsor Hills
Single Family Residential
4 beds3 baths2,088 sq.ft.
CAP RATE
Trad. 3.54%Airbnb 7.96%
$400,000
MLS 1102849
8829 White Ibis DR
Austin, TX 78729
Wells Branch
Single Family Residential
4 beds3 baths2,416 sq.ft.
CAP RATE
Trad. 2.08%Airbnb 7.93%
$975,000
MLS 4374260
3201 Cherrywood RD
Austin, TX 78722
Upper Boggy Creek
Condo/Coop
4 beds4 baths2,426 sq.ft.
CAP RATE
Trad. 0.79%Airbnb 7.89%
$749,000
MLS 2178131
14415 Cochise TRL
Austin, TX 78734
Barton Creek
Single Family Residential
4 beds3 baths2,800 sq.ft.
CAP RATE
Trad. 2.51%Airbnb 7.84%
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
951
$74 per night
Entire home/apt · 1 bed
Downtown Austin Texas Condo
773
$75 per night
Entire home/apt · 1 bed
Garden Cottage in East Austin
759
$92 per night
Entire home/apt · 1 bed
Tiny House in the Heart of the East Side
732
Austin, TX Homes for Rent
$2,295
MLS 5146168
3005 Foxton CV
Austin, TX
Garrison Park
Single Family
3 beds2 baths1,519 sq.ft.
$1,100
MLS 6607664
2404 Longview ST #201
Austin, TX
Windsor Road
Apartment
1 beds1 baths564 sq.ft.
$1,875
MLS 2799532
300 Bowie ST #1502
Austin, TX
Downtown
Apartment
1 beds1 baths565 sq.ft.
$2,400
MLS 436485
10205 Wind Cave Trail
Austin, TX
Sweet Briar
Single Family
4 beds3 baths2,601 sq.ft.
Austin, TX Open Houses
Open 12 PM to 4 PM
$260,000
MLS 8284492
9222 Singing Quail DR
Austin, TX 78758
North Austin
Condo/Coop
2 beds2 baths1,296 sq.ft.
CAP RATE
Trad. -0.13%Airbnb 4.77%
Open 2 PM to 4 PM
$630,000
MLS 6040977
3713 Epperson TRL
Austin, TX 78732
Barton Creek
Single Family Residential
3 beds2 baths2,082 sq.ft.
CAP RATE
Trad. 0.53%Airbnb 6.08%
Open 1 PM to 3 PM
$625,000
MLS 1709049
2004 Matthews LN
Austin, TX 78745
Garrison Park
Single Family Residential
4 beds3 baths2,352 sq.ft.
CAP RATE
Trad. 0.52%Airbnb 4.83%
Open 12 PM to 2 PM
$789,000
MLS 1005613
5412 Cherokee Draw RD
Austin, TX 78738
Barton Creek
Single Family Residential
4 beds4 baths3,061 sq.ft.
CAP RATE
Trad. 0.86%Airbnb 5.92%
Best Austin Neighborhoods for Buying Investment Property
73%
Mashmeter
property price
$899,500
Median
cap rate
2.72%
Traditional
5.58%
Airbnb
rental income
$2,041
Traditional
$4,184
Airbnb
homes for sale
2
occupancy rate
60%
Airbnb
69%
Mashmeter
property price
$950,000
Median
cap rate
3.05%
Traditional
4.23%
Airbnb
rental income
$2,416
Traditional
$3,346
Airbnb
homes for sale
5
occupancy rate
41%
Airbnb
71%
Mashmeter
property price
$599,900
Median
cap rate
4.45%
Traditional
8.61%
Airbnb
rental income
$2,225
Traditional
$4,305
Airbnb
homes for sale
1
occupancy rate
64%
Airbnb
70%
Mashmeter
property price
$725,000
Median
cap rate
4.38%
Traditional
6.49%
Airbnb
rental income
$2,647
Traditional
$3,924
Airbnb
homes for sale
3
occupancy rate
54%
Airbnb
68%
Mashmeter
property price
$169,950
Median
cap rate
13.81%
Traditional
26.38%
Airbnb
rental income
$1,956
Traditional
$3,736
Airbnb
homes for sale
2
occupancy rate
57%
Airbnb