Zillow ranks Austin as one of the hottest housing markets in 2022, based on key investment metrics including price growth, job market and inventory, and demographics. Home to one of the fastest-growing major metro areas and a booming job market, Austin continues to stand out due to the local tech industry and relative affordability.
Home prices have increased by more than 40% year over year, and, in many of the best neighborhoods in Austin, there are more residents who rent than own. We recently looked at the best Austin neighborhoods in which to invest, based on data from Realtor.com, Redfin, and Niche.com.
We looked at neighborhoods in Austin to find great investment properties based on the best overall ranking, along with areas popular with young professionals and places known for their diversity.
Key takeaways
- Home prices in Austin have increased by 40% over the past year, which may be one reason why, in many neighborhoods, more people rent than own.
- In popular neighborhoods, such as Downtown Austin and North Austin Civic Association, 69% or more of the households are occupied by renters.
- Neighborhoods like Triangle State are popular with both families and young professionals, with 90% of the residents renting their homes.
>>Explore Roofstock's Austin investment properties.
Why invest in Austin?
Surging population growth, a robust job market, and a high percentage of renters in many neighborhoods are just 3 of the many reasons to consider buying a rental property in Austin. Many residents are migrating from the East and West Coasts, drawn by Austin’s booming tech industry, laid-back atmosphere, and lack of state personal income tax.
The real estate market in Austin has been described as being “extraordinarily hot” by one local news station, although that might be a bit of an understatement.
Median rents for 3-bedroom homes in Austin have grown by 20% year over year, while the typical value of a median-price-tier home has soared by more than 40% over the past 12 months (Zumper as of February 1, 2022; Zillow as of December 31, 2021).
15 great areas in Austin for investment properties
There are over 80 Austin neighborhoods in which to look for investment property. To help you narrow down the options, here are 15 areas to consider. Neighborhood-level data comes from Realtor.com, Niche.com, and Redfin as of December 2021.
Downtown Austin
Downtown Austin is home to Waterloo Park, Museum of the Weird, and many of the city’s cultural and historic districts. The area is a neighborhood in Austin where more people rent than own:
- Population: 12,772
- Median sale price: $775,000
- Change in sales price (year over year): 25.5%
- Days on market: 45
- Median rent: $2,184
- Renter-occupied households: 69%
- Median household income: $119,345
- ZIP codes: 78701, 78702, 78703
West Oak Hill
Located a short drive west of Downtown Austin, the West Oak Hill neighborhood is ranked as the second best Austin neighborhood in which to buy a house by Niche.com. This neighborhood has a dense suburban feel:
- Population: 24,500
- Median sale price: $610,000
- Change in sales price (year over year): 28.9%
- Days on market: 33
- Median rent: $1,536
- Renter-occupied households: 28%
- Median household income: $106,221
- ZIP code: 78736
North Austin Civic Association
Nearly 75% of the households in the North Austin Civic Association neighborhood are occupied by renters. Located north of Downtown Austin along I-35, the area has a mixed urban-suburban feel:
- Population: 29,011
- Median sale price: $400,000
- Change in sales price (year over year): 6.0%
- Days on market: 35
- Median rent: $1,063
- Renter-occupied households: 74%
- Median household income: $43,512
- ZIP code: 78758
Garrison Park
Located a little south of Downtown Austin near the Barton Creek Greenbelt, the Garrison Park neighborhood is ranked by Niche.com as one of the best Austin neighborhoods in which to buy a house and is also a popular area for renters. Garrison Park has a mixed urban-suburban feel and has lots of restaurants, shops, and parks:
- Population: 14,429
- Median sale price: $492,000
- Change in sales price (year over year): 14.2%
- Days on market: 40
- Median rent: $1,410
- Renter-occupied households: 50%
- Median household income: $70,760
- ZIP code: 78745
Windsor Park
Windsor Park is another neighborhood in Austin where more than 50% of residents rent their homes. Located southeast of the intersection of I-35 and East Highway 290, Windsor Park has a mixed urban-suburban feel:
- Population: 22,417
- Median sale price: $535,000
- Change in sales price (year over year): 15.1%
- Days on market: 47
- Median rent: $1,334
- Renter-occupied households: 57%
- Median household income: $66,310
- ZIP code: 78723
Old West Austin
Old West Austin is ranked as the best neighborhood for young professionals and the fifth best neighborhood in which to live by Niche.com. The neighborhood has an urban feel, and is an area of Austin where 70% of the residents rent rather than own:
- Population: 7,401
- Median sale price: $965,000
- Change in sales price (year over year): 27.8%
- Days on market: 26
- Median rent: $1,718
- Renter-occupied households: 70%
- Median household income: $98,565
- ZIP code: 78703
Old Enfield
Located just west of Downtown, the Old Enfield neighborhood in Austin is ranked as the #1 Austin neighborhood in which to live by Niche.com. The area has a mixed urban-suburban feel, and is an Austin neighborhood where most residents rent their homes:
- Population: 2,707
- Median sale price: $435,000
- Change in sales price (year over year): -41.1%
- Days on market: 48
- Median rent: $1,349
- Renter-occupied households: 66%
- Median household income: $63,098
- ZIP code: 78703
Bouldin Creek
Bouldin Creek has a mixed urban-suburban feel, with a lot of restaurants, coffee shops, and parks and a high percentage of renters. The neighborhood is located just south of Downtown, on the other side of the Colorado River near Lady Bird Lake:
- Population: 5,644
- Median sale price: $970,000
- Change in sales price (year over year): 29.3%
- Days on market: 39
- Median rent: $1,483
- Renter-occupied households: 56%
- Median household income: $79,608
- ZIP code: 78704
Triangle State
Located north of the Downtown Austin and Old West Austin neighborhoods, Triangle State is ranked as the third best Austin neighborhood in which to live by Niche.com. The neighborhood has an urban feel and is an area of Austin where 90% of the residents rent their homes:
- Population: 3,282
- Median home value: $528,600
- Change in sales price (year over year): no data available
- Days on market: no data available
- Median rent: $1,619
- Renter-occupied households: 90%
- Median household income: $68,099
- ZIP code: 78751
Galindo
Located just south of the Bouldin Creek neighborhood, Galindo has a high percentage of renters. The Galindo neighborhood in Austin has a mixed urban-suburban feel:
- Population: 3,726
- Median sale price: $757,500
- Change in sales price (year over year): 28.4%
- Days on market: 35
- Median rent: $1,204
- Renter-occupied households: 59%
- Median household income: $64,598
- ZIP code: 78704
Wells Branch
The Wells Branch neighborhood is located north of Austin along I-35, just past the Tech Ridge shopping center. Wells Branch is ranked as one of the best suburbs in the Austin area, has an urban feel, and is a place where more people rent than own:
- Population: 12,176
- Median sale price: $475,000
- Change in sales price (year over year): 43.9%
- Days on market: 36
- Median rent: $1,149
- Renter-occupied households: 77%
- Median household income: $54,421
- ZIP code: 78728
University Hills
Located northeast of Austin near the intersection of Highway 290 and Highway 183, the University Hills neighborhood has a mixed urban-suburban feel:
- Population: 5,015
- Median sale price: $547,500
- Change in sales price (year over year): 12.1%
- Days on market: 38
- Median rent: $1,326
- Renter-occupied households: 47%
- Median household income: $64,611
- ZIP code: 78723
Heritage Hills
Heritage Hills is located near the North Austin Civic Association neighborhood and is an area of Austin where more than 50% of the residents rent their homes. Heritage Hills has a mixed urban-suburban feel and is popular with Austin residents:
- Population: 15,967
- Median sale price: $440,000
- Change in sales price (year over year): 22.4%
- Days on market: 35
- Median rent: $1,332
- Renter-occupied households: 54%
- Median household income: $64,426
- ZIP code: 78753
Pecan Springs-Springdale
Located west of Austin near the University Hills and Windsor Park neighborhoods, Pecan Springs-Springdale has a dense suburban feel and nearly half of the residents rent their homes:
- Population: 6,617
- Median sale price: $592,076
- Change in sales price (year over year): 53.8%
- Days on market: 29
- Median rent: $1,051
- Renter-occupied households: 48%
- Median household income: $55,692
- ZIP code: 78723
MLK
The MLK neighborhood is popular with families and young professionals and is another area where 50% of the residents rent their homes. Located east of Austin near Windsor Park, the area has a mixed urban-suburban feel with a lot of restaurants, bars, coffee shops, and parks:
- Population: 13,268
- Median sale price: $600,000
- Change in sales price (year over year): 29.0%
- Days on market: 35
- Median rent: $1,342
- Renter-occupied households: 50%
- Median household income: $69,614
- ZIP code: 78721
>>Explore Roofstock's Austin investment properties.
