The vibrant city of Austin is popular for thrilling nightlife, Texas barbecue, and funky Western flair.
Ranging from business travelers to concert-goers, a whopping 30 million visitors swing through the Live Music Capital of the World every year. This demand, paired with a variety of exciting to-dos, are exactly what make an Austin rental property investment worth exploring.
To help you understand the earning potential of this Texan market, we created a free, downloadable vacation rental market analysis.
Inside you’ll find:
The findings in this analysis are based on Evolve’s Austin market averages in the last 12 months and provide a general baseline for performance potential. They’re designed to help inform smart buying decisions when exploring Austin investment properties.
Austin is home to a spread of urban entertainment and an elite music scene, while also offering easy access to nature (hello hiking, fishing, kayaking, and paddleboarding) at Barton Springs, McKinney Falls, and Town Lake Metropolitan Park. Its action-filled nightlife tends to attract a younger demographic, but Austin’s aquarium, zoo, and games at the University of Texas at Austin bring family-friendly crowds to the area, too. The cherry on top: year-round weather that stays pretty warm.
With music festivals like South by Southwest in March and Austin City Limits in October driving a ton of visits, Austin’s tourism tends to soar in the spring and fall. There’s still an opportunity to fill your calendar in the shoulder seasons, though. Lake Travis and Lake Austin are popular summer attractions, and spectacular holiday light shows pull in winter crowds.
Austin’s median home value currently falls in the mid-500,000s, which is well above the U.S. average. For buyers looking to secure a Texas investment property on a lower budget, it may be worth considering nearby Houston or Galveston.
An Austin rental property investment has strong income potential, but there are certain factors you need to consider to make your Austin vacation rental successful.
Four- and five-bedroom homes tend to bring in the most annual revenue for vacation rental owners in Austin. That said, one- and two-bedroom homes are actually the most popular choice for travelers with the most annual nights booked. That means investors in the area could see a strong return on investment across a variety of home sizes, broadening the scope of options when looking for the perfect property.
When considering where to buy investment property in Austin, our real estate experts say the most important thing to look for is proximity to shops, bars, and restaurants. After all, the city prides itself on two things: authentic Tex-Mex cuisine and live country music. Providing convenient, walking-distance commutes to local spots is key for a great guest experience.
Downtown Austin housing (dominantly high-rises and condominiums) caters heavily to younger crowds seeking bars and music venues. The area provides direct access to the Texas Capitol, the Bullock Texas State History Museum, Rainey Street (known for its nightlife), and it appeals to business travelers.
South Congress (‘SoCo’) and East Austin both offer a quiet, local feel — and they cater especially well to foodies and first-time visitors. Zilker is another Austin neighborhood worth exploring, as it’s central to outdoor attractions like Zilker Park and Barton Springs for any nature lovers coming to town.
Though home features like WiFi, on-site parking, and air conditioning may seem obvious, they are top amenities for those seeking an Austin vacation rental.
The 300 days of annual sunshine also calls for updated outdoor spaces — think a deck, patio, backyard, or balcony — and equipping that area with durable seating, shade from the UV, and even a fire pit or grill. These investments can pay off in the long run because they help your home stand apart from its competition and earn five-star reviews.
Visitors coming to the area will also appreciate homes with private pools (or access to community pools), so look for Austin rental property investment opportunities that help future guests cool down.
Thriving tourism, a sunny climate, and year-round attractions for all age groups make Austin a great consideration for a vacation rental investment.
Whether you’re looking for your first vacation rental purchase or hoping to turn an existing home into a profitable business, download our free Austin Vacation Rental Market Analysis today. It’s packed with useful insights, like:
Investing in Austin real estate should feel as stress-free as a cruise along the sunny shores of Lake Austin. Take advantage of our report and beat the heat with an informed and profitable Austin vacation rental investment.