Last updated on June 21st, 2023
best places in texas for airbnb
Key Takeaways
• Austin is the 2nd fastest-growing city in the US that offers an attractive housing market. Moreover, the city’s bustling tourist market and countless job opportunities attract many young professionals. It also allowed Airbnb hosts to earn a good passive income by owning short-term rental properties.
• Discover the advantages that real estate investors can enjoy when buying a property investment in Austin, Texas.
• We’ll feature the top 10 most profitable neighborhoods and nearby cities in Austin, Texas, along with their recommended property types and Airbnb dataset.
Introduction
Best known as the Live Music Capital of the World, Austin owns a dynamic and highly creative musical and cinematographic scene that can easily captivate everyone’s heart. It hosts plenty of exciting music festivals as well as interesting conventions throughout the year that attracts a great number of visitors to the city.
In addition, Airbnb occupancy rates in Texas cities state that Austin is one of the best cities to invest in real estate! This city offers an occupancy rate of 66% which is the highest among all major cities in Texas.
Still, there’s an important question that you must consider, where are the most profitable places for short-term rental investments in Austin? Don’t sweat it because we got you!
In this article, we’ll reveal the best places to Airbnb in Austin, Texas, and some of the expectations when investing in real estate in this city. Eager to learn more? Continue reading!
Why should you consider buying a rental property in Austin, Texas?
Investing in real estate in Austin is an amazing way of earning a passive income since it offers a good return on investment to property investors. Austin offers great climate conditions and hosts lively art & music festivals weekly. Thanks to this, it attracts a great number of visitors each month. But what advantages can Austin offer to real estate investors? Check out some of the reasons why buying Airbnb investment properties in Austin is an excellent idea:
Attractive real estate market
While Austin’s real estate market is competitive, its prices still are 23% lower compared to the national average as confirmed by Norada Real Estate. The median housing value is $540K. But we should point out that the housing market here is the second most expensive in Texas, yet it is still cheaper than in other major cities.
Fastest-growing US city
Austin is a technology hub and also offers a variety of cultural activities to visitors and locals alike. Did you know that Austin is in the top 10 fastest-growing cities in the US? According to the “American Growth Project”, Austin is ranked as 2nd fastest-growing city.
In addition to this, Austin is home to many larger businesses and startups. This opens the doors to many young professionals as it has a booming job market with a variety of opportunities. In fact, Austin ranks as the top job market in the country!
Bustling tourist market
The tourism industry also plays an important role in Austin since it contributes significantly to the city’s economy. According to Visit Austin Portal, the city of Austin welcomes around 30M tourist arrivals every year. This will surely catch the attention of investors who are aiming to cater to tourist accommodations.
Is Airbnb Profitable in Austin, TX?
Bet at ease because Airbtics assures you that investing in real estate in Austin is profitable. That being said, we must point out that the level of profitability highly depends on the property type and location.
According to Airbtics’ data, an Airbnb host can expect an average annual revenue of $53,977 and a median occupancy rate of 70% for operating a 2-bedroom property in Austin.
Top 10 Areas for Airbnb Investment Properties near Austin, Texas
Austin is the 11th most populous city in the US and the 4th in Texas state. It has diverse neighborhoods that are grouped into nine geographical regions. So it’s understandable if you’re struggling to choose the best place to set up your rental property in Austin.
Check out the best neighborhoods and nearby cities in Austin that are recommended for starting an Airbnb business:
1. Southeast Austin
- Total Number of Airbnb Listings: 45
- Best bedroom size: 4 bedrooms
- Median property price (4 bedrooms): $489,000
- Airbnb Annual revenue: $69,730
- Gross rental yield: 14.26%
2. North Austin
- Total Number of Airbnb Listings: 221
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $399,000
- Airbnb Annual revenue: $52,679
- Gross rental yield: 13.20%
3. East Austin
- Total Number of Airbnb Listings: 673
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $499,000
- Airbnb Annual revenue: $62,841
- Gross rental yield: 12.59%
4. South Austin
- Total Number of Airbnb Listings: 278
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $535,000
- Airbnb Annual revenue: $61,734
- Gross rental yield: 11.54%
5. Central Austin
- Total Number of Airbnb Listings: 177
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $495,000
- Airbnb Annual revenue: $55,149
- Gross rental yield: 11.14%
6. Canyon Lake, TX
- Distance from Austin: 41 miles
- Total Number of Airbnb Listings: 574
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $410,000
- Airbnb Annual revenue: $64,261
- Gross rental yield: 15.67%
7. New Braunfels, TX
- Distance from Austin: 45 miles
- Total Number of Airbnb Listings: 463
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $348,999
- Airbnb Annual revenue: $72,283
- Gross rental yield: 20.71%
8. Burnet, TX
- Distance from Austin: 45 miles
- Total Number of Airbnb Listings: 149
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): $265,000
- Airbnb Annual revenue: $41,051
- Gross rental yield: 15.49%
9. San Antonio, TX
- Distance from Austin: 65 miles
- Total Number of Airbnb Listings: 2,739
- Best bedroom size: 4 bedrooms
- Median property price (4 bedrooms): $350,000
- Airbnb Annual revenue: $63,216
- Gross rental yield: 18.06%
10. Fredericksburg, TX
- Distance from Austin: 68 miles
- Total Number of Airbnb Listings: 722
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): $515,000
- Airbnb Annual revenue: $73,255
- Gross rental yield: 14.22%
Conclusion
In summary, Austin’s real estate market offers a variety of property options and many profitable areas where investors can obtain a good return on investment by owning an Airbnb listing. There are plenty of neighborhoods and nearby cities in Austin with great rental yields and annual revenue, yet, it is worth mentioning that you still need to analyze your options carefully.
After finding out the best places to Airbnb in Austin, Texas, go ahead and check Airbtics’ Airbnb income calculator. Stand out among your competitor by taking the next step to maximize your profitability using the best Airbnb analytics tool!
