When it comes to American cities, Austin is one of the fastest-growing cities in the whole country, and a rising star in the lone-star state for property investment. Famous for its live music venues over the years, the area has become a thriving hotspot for small and medium-sized businesses and tech, although it has yet to reach the level of Silicon Valley in California. Tourism is another factor in Austin’s economic growth, as the Austin Film Festival and the South By Southwest (SXSW) conference continue to attract visitors to Austin every year. But where are the growing city’s population settling down?
East Austin
In recent years, East Austin has had quite the come-back with all of the gentrification that has taken place in the neighborhood, which continues to attract home buyers and renters. With all of the growth that has taken place in the community, investors have taken to the trend of buying-up reasonably priced real estate for either house flipping projects or investing in properties for the sole purpose of income generation.
East Austin real estate is consistently affordable compared to most of Austin with a median listing price of $370,000, and average monthly rent of $1,800. The average East Austin home is usually a one-level bungalow from the mid-century or earlier, brimming with potential. Many students, young professionals, and first-time buyers are drawn to this colorful and historic party of Austin. With a central location in the city, and a community that supports nature-conscious developments, and a thriving local economy, this is a hot spot that will continue to wield strong ROIs for investors in real estate.
Zilker
Living in a world-class city is one thing, but to live in a historic, cozy neighborhood known for its abundance of nature is quite rare! Zilker is one of the oldest parts of the city situated next to the Greenbelt, and about a 10-minute drive to Downtown Austin. The neighborhood is an eye-catching mix of character homes and urban-contemporary designs amidst cozy, tree-lined streets. If you’re looking to invest in a rental property, this coveted area steadily attracts millennials, students, and professionals. Families also enjoy access to the handful of parks in Zilker. Commuters choose Zilker real estate for its easy access to major points of interest such as the Austin Financial District, and The University of Texas Austin.
The median home value of Zilker homes for sale start at $470,000, and landlords can expect to bring in $1,200 a month. Considering how close the Zilker neighborhood is to downtown, it’s a sure bet you’ll get a healthy ROI.
Allandale
Real estate that’s close to major attractions and hubs of a city are usually at the top of an investors’ list, however, the charming community of Allandale stands out in Austin real estate for its family-friendliness and quiet atmosphere. Since Austin continues to be highly-ranked as one of the best places to raise a family, this has stimulated a steady rental market where investors can expect to bring in $1,200 a month from their Allandale real estate.
With a median home value of $350,000, Allandale offers excellent single-family homes for first-time buyers. Since these homes are some of the more reasonably priced properties in Austin, it’s almost too easy to add to your investment portfolio when owning in Allandale.
West University
West University real estate has one of the strongest rental markets found in Austin since it’s predominantly populated with students, being just blocks away from The University of Texas at Austin. It’s close to one of Austin’s most eclectic thoroughfares on Guadalupe Street or “The Drag”, best-known for its fantastic entertainment venues, local bars, and fun eateries.
Much of West University real estate is made up of heritage homes, apartments and condos. As long as the University is in business, you’ll always have a tenant in this neighborhood. Buying an apartment might be your best bet as they start around $200,000. The average listing price for a West University property is $348,000 with a median rent of $1,180. Over 94% of the population in this student neighborhood rents while the rest owns. You don’t have to be a student to enjoy this niche either! Many people like West University real estate because of the less than 10-minute drive to Downtown Austin.
Downtown Austin
It only makes sense that the core of Austin continues to anticipate appreciating homes prices, demand, and growth in the real estate. Downtown Austin is the heart of the city that’s surrounded by thrilling nightlife, job centers, universities, and beautiful parks such as the Waterloo Neighborhood Park and House Park. For the most part, Downtown Austin remains affordable despite the various attractions that have boosted some real estate prices.
This urban neighborhood has a rental market of 67% while the rest owns Austin real estate. Since it’s a such a delightful place to live for many, you’ll benefit from either owning and living in your Downtown Austin home or finding tenants. This popular area will only continue to expand, so owning or selling a house will anticipate a long-term ROI. The median house value is $470,000, and the average rent for Downtown Austin real estate is $1,800 a month.
Austin’s rapidly growing economy and an influx of young and talented tech grads means that Austin is one of the hottest markets in Texas and the States in general. Knightsbridge Ventures are a new property investment company bringing fresh new investors into Europe and overseas.