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.

Averages

Bedrooms: 3

Bathrooms: 2

Square Feet: 1,815

Purchase Price: $338,286

 

2. Country Club Gardens

Country Club Gardens features many smaller and cozy homes. It is located near the Austin-Bergstrom airport, making it close enough to downtown, but still far enough away from the hustle and bustle that comes along with a downtown city. The homes in this area are very competitively priced, making it an attractive area to invest in.

Averages

Bedrooms: 3

Bathrooms: 1

Square Feet: 932

Purchase Price: $224,639

 

3. Fawn Ridge

Fawn Ridge is a neighborhood near the Riverside area. It features midsize homes at a very competitive price point, which attracts many buyers to this area.

Averages

Bedrooms: 4

Bathrooms: 2.5

Square Feet: 2,029

Purchase Price: $462,375

 

4. Milwood

Milwood is located in North Austin, conveniently close to downtown. It is known for having an abundance of unique homes built in the 70s, 80s, and 90s as well as great schools and parks. It is just minutes away from the domain and split into two different Independent School Districts. The homes in this area are generally in good condition but in need of some mild updates. They make for great rental homes.

Averages

Bedrooms: 3

Bathrooms: 2

Square feet: 1,807

Purchase Price: $318,589

 

5. Quail Creek

This neighborhood is located in North Austin near North Lamar and Shoal Creek. It features primarily older and more quaint homes. The neighborhood is very well developed, and some of the houses might require some light updates. The booming location and competitive pricing make it a popular spot to buy a home or invest in.

Averages

Bedrooms: 4

Bathrooms: 2

Square Feet: 1,659

Purchase Price: $318,980

 

Austin is full of endless investment opportunities! It’s important to speak to a member of our team to learn the differences between these different neighborhoods. 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.