Austin, Texas has one of the best real estate markets in the nation. The strong job market, natural outdoor beauty, and laid-back lifestyle entice renters and homeowners to flock to the Lone Star State. What makes Austin the best place to buy investment properties? Why should investors buy rental properties in Austin? Is Austin a good place to invest in real estate? We'll be answering your questions on why you should invest in the Austin housing market and the top 5 next best places to invest in Austin.
Why Should You Invest in the Austin Housing Market?
The Austin economy continues to be based strongly on technology and high learning. It earned the nickname of Silicon Hills due to the number of tech companies from Silicon Valley building their campuses in the area as well as the growing number of tech startups. Austin has made its way to the top of the list of the best cities for job growth. In 2019, Austin has experienced an unemployment rate of 2.7% which is lower than the state average of 4.0%. The city has also received a high-mark when it comes to work-life balance and competitive salaries. Millennials, born 1981-1996, have the highest percentage of relocating to Austin. With a large segment of the millennial population prefer to rent, this represents a favorable condition for investors.
A growing population means housing demand. Austin is among the fastest-growing metro areas in the U.S. The population is expected to continue its growth for the next 14 years. Since the last decade, Austin MSA has grown by an average of 55,500 people per year (U.S. Census Bureau Annual Population Estimates Program). The majority of the migration is domestic from different metros in Texas; Houston, Dallas, and San Antonio followed by New York, California, and Florida.
5 Next Best Places to Invest in Austin
1. University of Texas - Austin
Austin is home to the University of Texas - Austin, which is a major asset in the area with a population of over 51,000 (Fall 2018). There are about 13 neighborhoods that are within five miles of UT Austin. The huge student population influences the neighborhood environment and the local businesses around it. It is also one of the best walkable neighborhoods in Austin. West Campus is the heart of off-campus living with a population of more than 17,000 people — mostly college students — live in this neighborhood. Houses in this area are the most sought-after with developments of new condos and apartments in the neighborhood with houses located in North Campus and Hyde Park are being more abundant which are easily rented out mostly by the student population which makes it one of the best places to invest in Austin.
2. East Austin
Image by Larry D. Moore CC BY-SA 4.0
East Austin is an older section of the city with a mix of historic and new construction. It has excellent proximity to the University of Texas - Austin and Downtown Austin. East Austin is home to new condos and master-planned communities that are near historic, old homes. Areas in Manor Rd or Martin Luther King Jr Blvd are some of the most convenient locations for UT students. Manor is one of the popular choices for UT students residing in East Austin due to the bike lanes and sidewalks available which attracts both students and young professionals.
Cherrywood, one of the pedestrian-friendly neighborhoods and is also popular for UT students, consists of older homes and apartments that are along Manor. Rosewood is located to the south of MLK Jr. Blvd with great proximity to Downtown Austin. Adjacent to Rosewood is Chestnut, a smaller neighborhood with a mix of homes and low-rent apartments. Mueller, an award-winning master-planned community with modern homes and top-notch amenities.
Most condos in the area were built after the 2000s while a typical East Austin apartment was built from either the '60s or '70s with it being renovated over the past decade. Most homes located in East Austin are bungalows, ranch-style, or modern homes built after the 2000s. Residents of East Austin have easy access to many grocery stores, community gardens, farmers' markets, great restaurants, coffee shops and retails centers.
3. South Austin
Image by Outdoor Craziness, Wikimedia Commons.
The in-demand area of South Austin consists of the best restaurants, bars, popular outdoor recreation areas, entertainment districts, and neighborhoods popular with students, families, singles, and young professionals. Home of the hottest zip code in the city, 78704, South Austin embodies the slogan Keep Austin Weird.
South Austin is composed of small districts and neighborhoods that have experienced rapid growth over the years. Here is a summary of the neighborhoods in South Austin:
Popular with young families and professionals with homes built from the '70s to the '80s with many of those being renovated or replaced with modern structures. The neighborhood is one of the hottest among other South Austin neighborhoods in the real estate market.
One of the oldest neighborhoods in Austin with a desirable location plus convenient access to downtown. Full of more than 20,000 unique homes from large historic homes to renovated, newly built modern houses, condos, and apartments.
Most of the neighborhood's growth occurred from the '20s to the '30s. The neighborhood is one of the best locations for people that love the walkability and convenience of downtown Austin. Homes and condos in Bouldin Creek are popular with singles and small families.
Outdoor enthusiasts will love this neighborhood due to being accessible to various outdoor destinations in South Austin that are within walking distance.
These neighborhoods provide a more traditional, residential feel. There is a wide array of rental options for renters in the area. An approximate or two-thirds of South Austin residents rent. New, modern apartments and condos have been built over the past decade while houses were built from the '60s and '80s.
Getting around should be easy since there are nearby districts that offer everything you are looking for. South Congress (SoCo) is home to music venues and restaurants, and South Lamar, located 5 minutes from downtown, is another desirable place to live in Austin with local businesses that are rapidly growing in the area.
South Austin has many convenient grocery options, hike and bike trails, live music venues, coffee shops, and restaurants that are accessible to each and every neighborhood nearby.
4. Dripping Springs
Dripping Springs has been an oasis for families outside the Austin area. A small-town feel with big-city amenities. Dripping Springs is located about 40 minutes to the west of Austin and is home to just over 4,600 residents. The region is well-known for being the wedding capital of Texas, its distilleries, and the gorgeous views of Hill County.
Exchange "I do's" at the wedding capital of the nation, Dripping Springs. With over 36 wedding venues within a 17-mile radius, Dripping Springs is the ideal location for weddings. Many couples visit from everywhere to witness the true beauty of the Hill County from breathtaking backdrops and culinary art, Dripping Springs is proud to be referred to as the "Wedding Capital of Texas".
Dripping Springs, Texas is also a premier destination for craft distilling. These distilleries in the region only use hand-selected ingredients. You need to make distilleries in Dripping Springs a part of your next adventure if you are looking to get boozy in the Hill Country! Some well-known distilleries are Dripping Springs Distilling, Deep Eddy Vodka, Treaty Oak Distilling, Frog Pond Distilling, Desert Door Texas Sotol, and Stinson Distilling.
5. Round Rock
What once was a sleepy suburb is now one of the coolest in America with a population of over 120,000. Round Rock, Texas, about 20 miles from Austin, is home to major employers from tech to healthcare such as Dell, Emerson, TECO-Westinghouse, and Hospira, which are increasing their opportunities for employment. The city is becoming a major center for economic growth in Central Texas.
There is a wide variety of home types available in Round Rock; from homes built in the 70s and 80s that were recently renovated to new large built homes. Round Rock is nestled in the eastern edge of the Texas Hill Country which offers abundant outdoor experiences within the stunning environment.
Round Rock has a lower crime index than the state of Texas. In 2018, residents responded to a survey where 90% has reported that they felt safe in their neighborhood. This has been a factor of families moving into the area for being one of the safest neighborhoods in the nation.
The growing interest in Austin is influenced by the presence of employers, top-rated schools, amenities, and the pleasant family environment that contributes to the property value. Get in touch with our consultants to know more about the best places to invest in Austin or search for Austin Investment Properties here.