The Austin Real Estate Market is a prime spot to invest in this year. The Emerging Trends in Real Estate report ranked Austin second on their list of cities in America with the most promising real estate market outlook. Whether this is your first investment property ever, or you’re an investment pro, there has never been a better time to start or grow your investment portfolio.

Why is Austin’s Real Estate Market Thriving so Much?

The hot real estate market has Austin’s thriving economy to thank. The unemployment rate in Austin is lower than the national average, and has improved an astonishing 3.4%. Job growth rates have been rising and are predicted to reach 3.6%.

The rapid population growth is also to thank for the thriving real estate market. Austin is definitely one of the most rapidly growing cities in the U.S., with 140 people moving to Austin each day. The large amount of people moving to Austin increases the demand for housing and increases the amount of opportunity for real estate investors.

 

The Austin Real Estate Market: in Summary

  • Traditional Rental Income: $2,224
  • Airbnb Rental Income: $3,054
  • Airbnb Cash on Cash Return: 0.88%
  • Traditional Cap Rate: -0.04%
  • Airbnb Cap Rate: 0.88%
  • Occupancy Rate: 44.65%

Airbnb’s have proved to be an incredibly smart investment, considering the statistics that the cap rate for Airbnb’s in nearly every neighborhood is above 1%, and above 3% for nearly half of Austin’s neighborhoods. Looking at the numbers, Airbnb’s are currently a wiser investment than traditional rental properties and will yield a higher return on your investment.

 

Top Neighborhoods to Invest in:

1. Windmill Run

 Windmill Run is located in southwest Austin. It is known for having excellent schools, a lot of well-developed trees, and a close location to amenities such as parks and greenbelts. 

Purchase Price: $265,000

Down Payment: $53,000

Projected value in 10 years: $411,000

 

2. Northcape 

Northcape is in northeast Austin close to downtown and many major tech companies including Dell and Apple. The homes tend to be older and more of fixer-uppers, so be prepared to sink some money into your new home for some repairs. This neighborhood is very reasonably priced, however, it is notorious for having foundation issues so be wary of that before purchasing a home in this area. 

Purchase Price: $185,000

Down Payment: $37,000

Projected value in 10 years: $340,000

 

3. Georgian Acres 

Georgian Acres is conveniently located near ACC Highland mall and many northern employers. The prices are still incredibly reasonable for the location. This area has an interesting mix of home styles. Some of them are new, some old, some on huge lots, some on small ones. Certain homes in this area have already been renovated, while others are still needing some work. 

Purchase Price: $249,000 

Down Payment: $49,8000

Projected value in 10 years: $386,000

 

Austin is full of endless investment opportunities! To get a jump start or help on your investment properties give us a call at 512-653-9999 or shoot us an email at info@legacyrealestategrp.com.