Austin, TX: Rental Property ROI Analysis
|75 US City Avg.
Home to the popular SXSW festival, a burgeoning restaurant scene, and a unique culture with the motto "Keep Austin Weird," there is so much to love about the community of Austin, Texas. In fact, the Atlantic placed it No. 3 a few years ago as one of the top cities for recent college graduates, thanks to respectable unemployment stats; the percentage of people in technical, professional, management or creative jobs; and the number of residents with a college degree. And this year, Forbes ranked it among the best places to start a business in 2014. It's not all business in Austin, however; the community is also home to world-class recreational and cultural attractions.
With the release of All Property Management Q2 2014 Rental Ranking Report, Austin can also add being the 5th BEST city in the Southwest for rental real estate investment to its list of achievements. This is the second quarter in a row that Austin has received the 5th BEST ranking.
What data is this based on?
To calculate the All Property Management Rental Ranking Report, we explore a number of different sources, including current government housing and jobs data, as well as housing appreciation forecasts for 75 cities across the United States. We look at specific factors such as home vacancy rates, capitalization rates, home value appreciation rates, annual job growth, change in rental rates, and average days a property stays on the market to determine which U.S. cities are poised to give investors the highest return on their rental investment.
Austin, Texas, while lacking in home value appreciation and vacancy rates, does quite well in the areas of job growth and average "days on market." Job growth was 3.36 percent year-over-year, giving Austin a 7th place ranking among the 75 Metropolitan Statistical Areas that All Property Management evaluates for the Rental Ranking Report. Also landing the city in 7th place is the city's average "days on market" ranking of 48 days. The "days on market" calculation looks at the average number of days it takes for a property to sell. A low "days on market" rate of 48 indicates that the Austin real estate market is quite active. Other positives for the city include a 2.32 percent increase in rental rates for the year, and a capitalization rate of 7.75 percent.
What does a high-ranking mean?
Is owning a rental property in Austin profitable?
Quite simply, there has never been a better time to consider rental property investment in Austin and the surrounding areas.
Strong job growth numbers and an active real estate market, when combined with rental rate increase, suggests that investors will see a strong return on their investment in the Austin rental real estate market as more and more renters are looking for quality rental properties.
Thinking about renting out your Austin property? Seek the assistance of a local, qualified property manager and automate your rental profit.
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Our team at All Property Management specializes in connecting property owners with property agents in communities across the country. Expert property managers can assist with setting rental rates, advertising your property, screening and managing tenants, collecting rent, managing vendor relationships, and ensuring you are complying with local, state, and federal housing regulations, thus taking the hassle and worry out of managing your property. We look forward to working with you and welcome the opportunity to help you with all your property management needs.