Where Are the Best Places to Buy Investment Property in Austin?

Austin, TX, regarded as the “live music capital of the world”, remains as U.S. News and World Report’s best Texas city to live in, and to some, possibly one of the best cities to invest in. 

Though it has been a popular destination for more than 30 million yearly tourists for its music and festivals, the growing presence of tech companies has been immense, earning the Austin area the nickname “Silicon Hills”. 

In 2020, a major tech company, Oracle, announced that it would be moving its headquarters to the Austin area. As it joins the home of multiple secondary office locations of major billion-dollar tech companies, like Google, Tesla, Amazon, Apple, Facebook, and SpaceX, this will only continue to create new jobs. 

With the continuous new influx of people to the Austin area, there will be an increased demand for large infrastructure projects in transportation, real estate, building, and urban design. This will require support for jobs in all service sectors to be efficient, starting with housing that's close to the things they care about. 

But with drastic economic fluctuations over the past few years, how can all of these new Austin residents afford housing to fit their needs?

Coliving is a Great Option for Austin Rental Property Owners.

Coliving thrives as an innovative, new model for people looking to relocate, and for real estate investors’ striving portfolios. So, what is coliving?

Under coliving, housing productivity increases as the conversion to multiple “units” within a home foster a bigger market for professionals seeking housing close to their professions and other daily activities. 

When listing your property with Alcove, your investment property will be occupied by professionals who individually pay their share of rent and utilities. This creates more opportunities for them, and with Alcove’s revenue-sharing model, greater returns for your investment. 

Investing within Austin can net you a consistent and strong cash flow. With Austin having a higher than average price-to-rent ratio of 23.63, it signals high occupant demand, low vacancies, and stable investor incomes for the area.

But where in Austin should you be buying to get the best match for coliving?

Honestly, we know that any location in Austin will come with an expectation of a great return, but more precisely, we’ll share some areas that are great investments for the present and for the time to come. 

Based on our data and research, the following below are the best places to buy investment properties in the Austin area (in no particular order):

Hyde Park

• Central Austin - charming and historical district

• Registered on the National Register of Historical Places

• Late 19th-century architecture mixed with Modern styles has created unique building characteristics and youthful occupants

• Located near the University of Texas at Austin

  • 7-minute drive

  • Attractive area to students and academics

Bouldin Creek

• Across the Colorado River from Downtown Austin

• Higher than average percentage of single people in the area

  • More demand for rental units

Northwest Austin

• Home to many “Silicon Hills” Companies

  • The new Apple campus, Oracle headquarters, Spectrum, Paypal, and Microsoft

• Composed of major Entertainment districts

  • Live music, food trucks, local restaurants, and retail stores

Cedar Park

• Major suburb of Austin

• The H-E-B Center is located at Cedar Park

  • A major concert and sports venue

  • Home to the Texas Stars and Austin Spurs

These are just a few of the many neighborhoods within Austin that would have sustainable returns for investment properties. 

If you're curious to see how much you could earn, run your property through our coliving rental estimator and see how much income you could receive in Austin by listing on Alcove one day.

If you're curious to learn more about why Alcove is a great option for real estate investors and rental property owners, read more here!