Real estate has long been proven to be one of the best ways to generate wealth, and Austin real estate investment is one of the best U.S. markets for this.
Austin first broke into the scene as one of the best cities for rental property investment many years ago. Despite many rapid changes in the region, Austin rental market growth has continued pretty consistent in the time since.
Today, the Austin real estate investment market is still one of the best in the country, and it stands to remain that way for many years to come. Here are some of the main reasons why Austin is among the best cities for rental property investment.
Booming Job Market
Austin has become home to technology hubs and corporate relocations in recent years. This has fueled significant economic growth and investment in the region.
Large tech companies such as Dell, Google, Apple, Oracle, Amazon, Cisco and Tesla all have a major presence in the city. These companies attract professionals, ensuring a steady pool of tenants for rental properties.
In the middle of 2024, Austin was rated among the cities with the best job markets in the U.S.
Population Growth
A positive sign for the Austin rental market growth is the fact that the city is still one of the fastest-growing metro regions in the U.S. For many years, Austin took the top spot on that list, and while it has dropped off some, it still ranks seventh in the country for population growth.
The U.S. Census Bureau reports that the metro region added more than 50,000 residents from 2022 to 2023, which represented a growth rate of 2.1%.
This population growth results in an increased demand for housing, especially rental properties, which results in great returns for landlords.
Desirable Lifestyle and Amenities
Austin is such a desirable region to live in, which is why so many companies are locating here. They know that the city will be attractive to employees, and they’re right.
There’s so much to do in the Austin region, from outdoor activities on Lady Bird Lake to live music venues and a thriving food scene. The unique culture of Austin continues to attract more residents to the region.
This strong lifestyle appeal ensures that renters will consider the city very desirable for the long term. One of the best Austin landlord tips is to highlight your rental property’s proximity to these amenities to attract tenants.
Investor-Friendly Market Conditions
On the Austin real estate investment side of things, the city and state provide very friendly market conditions. The property tax rates are favorable, and there are many opportunities for home appreciation.
All of this makes Austin a great choice for both short- and long-term investment strategies — meaning you can earn a monthly profit from rent while also watching the value of your rental property grow over time.
Not only that, but the Austin rental market growth is fueled in large part by the fact that it is so diverse. There are a number of different property types, from urban condos to suburban single-family homes — all of which can cater to diverse investor needs.
Educational and Cultural Hubs
Major universities such as the University of Texas at Austin call the city home, and there’s a growing arts scene here, too. All of that adds stability and vibrancy to the Austin real estate investment market.
Why? Because academics and students contribute to a consistent demand for rental housing.
Resilience in Market Downturns
Downturns are natural in any real estate market, but Austin has historically proven resilient even during the worst national downturns. During the last major downturn during the 2008 financial crisis, Austin wasn’t as severely impacted as other cities.
The fact that the city has strong tech infrastructure and such a balanced economy overall — with large private employers and the state government as well. This offers peace of mind to investors.
The ongoing demand helps the city to consistently outpace many other markets in the country.
Partner with 1836 Property Management for Your Austin Real Estate Investment
These are just a few reasons why Austin is one of the best cities for rental property investment, and why it will continue to be so for years to come.
If you’re in the Austin real estate investment market, or are thinking about jumping in, now is a great time to do so. One of the keys to success in the market is partnering with an Austin property management company you can trust.
At 1836 Property Management, we have years of experience fine-tuning our processes, procedures and approaches — all of which has resulted in big returns for our clients.
Contact us today to learn how we can help you succeed in Austin rental property.
