Are you considering investing in Austin, TX rental properties?
Rental property investments are a great way to increase your personal wealth. The monthly rental income together with the property appreciation rate can help your net worth swell over time.
But not any real estate investment will do. You need to make sure that the area you invest in has what it takes to solidify your financial position. That calls for doing your due diligence on the local real estate market and economy.
In the following paragraphs, we’ll take a look at some major reasons why you should consider moving your hard-earned dollars into the Austin real estate market.
You’ll learn about the economy, job market, rental sector, and top neighborhoods to keep an eye out for.
Investing in Property in Austin Texas
#1: Home Values on the Rise
The appreciation of home values is a crucial factor when considering a particular market for investment purposes. Austin’s real estate market has seen strong signs of growth in property values in previous years.
The best thing about the general appreciation trend is that a sizeable portion of the city’s inventory is still considered affordable. As a result, you may be able to snag a relatively affordable piece of real estate and see it grow over the 2020s.
#2: Strong Economy
Austin’s economy is showing healthy signs despite the ongoing global pandemic. Over the past decade, unemployment rates have lowered, whereas the job growth indicators have generally been improving.
The city has become a hub for leaders in a number of industries. These enterprises need a workforce from a variety of backgrounds and skillsets. Due to stiff competition, they are able to provide competitive salaries.
The tech sector plays an ever-increasing role in Austin’s economy. A western portion of the Greater Austin Area has been dubbed Silicon Hills, due to the intense influx of high-tech companies.
The industry behemoths arriving in the Austin scene boost the demand for rental properties in the city. Some of the notable tech companies with offices in the Austin area include IBM, Apple, Facebook, PayPal, Google, and Amazon.
#3: Population Growth
From an investor’s point of view, population metrics are crucial. A growing population is a reliable predictor of rental demand.
And this is another point where Austin shows great potential for investments. Because Austin is frequently referred to as one of the best places to live in the country, it continues to attract new residents.
Austin, Texas is one of the U.S. cities that has the fastest growth. The booming job sector in the Austin area ensures that a growing number of people want to move in. There is currently no reason to believe that this trend will dwindle any time soon.
However, the job market isn’t the only driving force behind population growth. The quality of life in Austin is great for many of its residents. It’s an especially attractive city for people to enjoy active outdoor recreation.
#4: High-Quality Education
The educational opportunities in Austin are excellent. The city is home to the University of Texas Austin, which belongs on the national list of top 50 universities.
Austin has first-rate primary and secondary education institutions, too. For instance, Eanes School District has been ranked as the #1 in Texas and the 11th best school district in the U.S.
Additionally, the local tech, and business development creates many internship opportunities.
#5: Many Sights & Attractions
Austin is no stranger to tourism and entertainment options. The city and its immediate surroundings benefit visitors and residents alike when it comes to sights, attractions, and activities. Here are just a few of the options available:
- SoCo: The South Congress district, known as SoCo, is the bedrock of the Keep Austin Weird movement. The hip stores in this neighborhood sell unusual and retro clothing. It’s a great area for dining and nightlife as well.
- Lady Bird Lake Trail: Austin has many great recreational trails, but this lake features one of the most popular ones. The Lady Bird Lake Hike and Bike Trail is suitable for walking, jogging, and biking.
- State Capitol: The State Capitol of Texas is located in Austin. The legislative center has been in the same spot since 1888. Many Austin visitors head to the capitol to gain a better understanding of Texas’ history.
#6: Plenty of Desirable Neighborhoods
Real estate investors have many Austin areas to choose from. In Austin, you’ll be able to weigh your investing goals against the stats and characteristics of each neighborhood.
Here are just a few communities you could consider:
Great for student rentals, North University is in close proximity to the University of Texas campus. The rental market is hot, as students and academic employees prefer to live close to the university.
The neighborhood of Tarrytown is just north of Lake Austin. The desirability of this community springs from the combination of an excellent school system, lakeside living, and local dining and coffee scene.
If you want to invest in a master-planned community, Mueller is a great choice in the Austin area. It’s about 4 miles from downtown. The general concept is eco-friendly living with an architectural mix of lofts, condos, and townhouses.
Another student favorite is the community of Cherrywood. The location is quite close to the University of Texas. This neighborhood is also known as French Place. That’s because many of its place names are in French.
The Bottom Line: Investing in Austin Real Estate
Houston may be one of the powerhouses of Texas real estate investment, but Austin is able to hold its own in many respects.
The relative affordability of housing in certain areas combined with growing rental demand is a gold mine for investors.
Some of the neighborhoods you could consider in Austin include Mueller, North University, Tarrytown. All of these areas, and many more, benefit from the strong local economy and job growth.
If you’re looking for assistance with a real estate investment in the Austin area, get in touch with the team at Bigham & Associates. We’d be glad to tell you more about how we help property investors in the area thrive.