The 6 Best Areas of Austin, Texas to Purchase a Rental Property in 2021
Austin, Texas has been no stranger to growth over the last decade. Over this time, money and industry has consistently been flowing into the local Austin economy and it seems every day there is a new announcement of some business bringing it’s operations to our area. Big Tech and Automakers such as Tesla are continuing to invest in running things in Austin and start-ups and new ventures are eyeing Austin as a new tech hub similar to San Francisco’s Silicon Valley, with Austin having been dubbed Silicon Hills.
Tesla’s founder, Elon Musk, has recently shared insight into why he believes Austin, Texas will be the biggest boomtown that America has seen in 50 years.
With the stimulation to Austin’s economy spurred on by an influx of people and business, Austin has continued to be top destination to live in America and sits atop various articles from different sources claiming Austin is one of, if not the best, place(s) to live in America.
Austin’s economy has consistently outpaced Texas and the rest of the United States on unemployment numbers over the past decade, making it a preferred destination for those looking for more opportunities for themselves and their families.
What comes with this influx of individuals and growth to Austin’s economy is the need for housing. People need to live somewhere. The above factors we just skimmed over have made Austin a great destination for investors to park their cash in real estate, more so into single-family rental homes specifically.
However, with Austin’s exponential growth the prices of real estate are beginning to catch up, and sometimes now exceed, the growth of Austin. While it’s ideal, for some investors it may not make sense to shell out the funds for a property in an area code like 78702, where you’ll find your property near downtown. Real estate investing is different for all, but one thing real estate investors should always be doing is looking to turn a profit on their investment.
Austin is more than just Downtown. Excellent suburbs that surround the city, such as Round Rock; Austin has many different areas that offer unique real estate investment opportunities.
So, what are the best locations across the Austin Metroplex to purchase a rental property in 2021?
As a leading Austin property management company, Stone Oak Property Management is in a unique position to be working with hundreds of different real estate investors, each with their own goals in mind. Over the past decade, we’ve been able to monitor our client's properties and keep our ear to market in the different areas that we provide property management services. It’s safe to say that some areas of Austin are going to work out better for your rental property investment than others. You know what they say about real estate - “location, location, location” - and it’s never been more true.
Home Value Trends in Austin via Zillow Data
With that said, certain locations in Austin are starting to grow in price, as seen in the graph above, making them unreasonable for some investors to invest in. Below we go over the 6 best areas across Austin, Texas for real estate investors to be buying rental homes in 2021.
1. Pflugerville, Texas
Pflugerville is an area our clients and real estate investors love, and it’s a location that they typically experience a lot of success in. Pflugerville’s single-family rental homes bring in an average market rent of about $1,805/month. Being composed of 83% single-family homes, Pflugerville presents a unique opportunity for real estate investors looking to buy rental properties in Austin, Texas. Below is a snapshot of the homeownership vs. renters in Pflugerville, Texas.
The Pflugerville-based homes that we manage at Stone Oak Property Management typically experience little-to-no issues when it comes to leasing quickly and finding tenants. In fact, the average time on the market for homes in Pflugerville across the entire MLS system here in Austin is 27 days. Compare this to Austin, which is currently 36 days and you’ll see purchasing rental homes in Pflugerville can be a good investment decision if you’re looking to own property in the Greater Austin, Texas area.
Why Real Estate Investors Will Like Investing in Pflugerville, Texas Rental Homes
Real estate investors with an eye on Pflugerville, Texas rental homes will enjoy a variety of factors that can benefit their investment. Great school systems, a large tenant pool resulting in reduced lease times, a higher concentration of families with 3+ members resulting in tenants with more long-term tenant potential as well as the appreciation to the property as Pflugerville continues to grow alongside Austin.
Why Renters Like Living in Pflugerville, Texas
It goes without saying that living in Pflugerville, Texas can save people money over living Downtown or in a higher-priced area of Austin. Alongside potential savings in rent, Pflugerville, Texas has an outstanding school system in PFISD. Families looking for a great school system for their children will often choose Pflugerville. Pflugerville stands as an attractive destination for renters looking to settle their families down in the Greater Austin region.
Pflugerville, Texas Scorecard
Average Days on the Market: 27 days via ABOR Data over the last 6 months
Average Monthly Rent: $1,805/month
School Districts: Pflugerville ISD
Safety Rating: Pflugerville, TX Crime Stats
Population: 65,380 per U.S. Census Data
Already own a home in Pflugerville, Texas, and interested in converting your home into a rental property? Find out how much your Pflugerville rental property can earn in rent every month!
Working with a Pflugerville property manager can help you identify investment opportunities and help grow your portfolio with Pflugerville rental homes. Contact our Austin property management company today if you have questions about Pflugerville property management services.
2. Cedar Park, Texas
Another great location in the Austin, Texas area for investing in rental homes in Cedar Park, Texas. Located to the Northwest side of the Austin metroplex, Cedar Park is easily accessible from Downtown Austin making it a great destination for tenants looking to escape the city’s higher rent prices. A constant gripe of many Austinites is the lack of public transportation and Cedar Park is lucky enough to have the Metro Rail in Austin that runs Cedar Park to Downtown Austin.
On average, real estate investors can expect an average rental rate of $1,768/month with their Cedar Park, Texas rental home.
With single-family homes making up 75% of the composition of homes in Cedar Park it definitely gives off the cozy-suburb feeling. Like Pflugerville, Cedar Park is a competitive rental market for renters. A good portion of Stone Oak’s rental portfolio is located in Cedar Park, Texas and we face virtually zero issues when it comes to leasing rental properties located in Cedar Park. Here is a snapshot of the current make-up of homeownership vs. renting in Cedar Park.
Why Real Estate Investors Will Like Investing in Cedar Park, Texas Rental Homes
Real estate investors considering the purchase of single-family rental homes in Cedar Park, Texas should feel confident in their investment. It boasts a low average time on the market for rental properties at just 21 days. A short drive up and down Highway 183 has individuals seamlessly moving from Cedar Park to Austin making travel times between cities lower than others. With an average rent of $1,768 per month, investors are capable of finding real estate purchases in Cedar Park that allow for the numbers to work.
Why Renters Like Living in Cedar Park, Texas
A short drive up and down Highway 183 that splits Austin will have individuals seamlessly moving from Cedar Park to Austin should they need to travel downtown for work or fun. Cedar Park, like Pflugerville, also has a great school system that attracts families to rental properties within the school district’s boundaries. Along with a great school district, Cedar Park does have the HEB Center which is home of the Texas Stars, a professional hockey team. Until the MLS stadium is built by The Domain and the Austin FC are in season, Cedar Park was the only destination for professional sports in the Austin area.
Cedar Park, Texas Scorecard
Average Days on the Market: 21 Days via ABOR MLS Data over the last 6 months
Average Monthly Rent: $1,768/month
School Districts: Leander ISD
Safety Rating: Cedar Park, TX Crime Stats
Population: 48,937 per U.S. Census Data
If you’re looking for the potential for more long-term tenant’s in your properties, Cedar Park offers landlords a great chance at locking down a great ROI for their rental property.
Already own a property in Cedar Park, Texas, and interested in converting your home into a rental property? Find out how much your Cedar Park rental property can earn in rent every month!
Working with a Cedar Park manager can help you identify investment opportunities and help grow your portfolio with Cedar Park rental homes. Contact our Austin property management company today if you have questions about Cedar Park property management services.
3. Leander, Texas
Neighboring Cedar Park is Leander, Texas. Not much separates these towns as they are very similar. Leander rental homes do bring an average rent of $2,040/month which exceeds Cedar Park’s average of $1,768.
With an average time on the market of a whopping 19 days, Leander rental homes lease quicker than any other suburb or general area in Austin, Texas. Compare this to Austin’s average of 36 days and you’re looking at almost half the time to lease your property in Leander compared to a unit Downtown. Below is a snapshot of the current homeowners vs. renters in Leander, Texas.
Why Real Estate Investors Will Like Investing in Leander, Texas Rental Homes
As mentioned above, Leander rental homes are leased in 19 days on average. That’s fast, and most of Austin and the surrounding area will take longer than that.
Couple that with Leander being 87.5% made up of single-family homes, and you have a local market that is attractive to investors looking to park cash in rental properties. 89.7% of those single-family homes are 3+ bedroom homes, meaning Leander’s population is made up mostly of families. It’s an important factor and we continue to say it, but the school system in Leander also helps support the growth of the rental market in the city as families see it as a good place to settle down for their kids.
Why Renters Like Living in Leander, Texas
Living in Leander offers a lot of the same things that Cedar Park does. Both municipalities are located on the Northwest side of Austin and offer easy access to most areas of Austin via Highway 183, Mopac Expressway, and the 45 Toll Road.
Leander, along with Cedar Park as well, offers residents easy access to Lake Travis as well. Individuals can quickly make their way to destinations like Volente Beach or the Oasis to catch the sunset over the water.
Leander, Texas Scorecard
Average Days on the Market: 19 Days via ABOR MLS Data over the last 6 months
Average Monthly Rent: $2,040/month
School District: Leander ISD
Safety Rating: Leander, TX Crime Stats
Population: 62,608 via U.S. Census Data
Already own a home in Leander, Texas, and interested in converting your home into a rental property? Find out how much your Leander rental property can earn in rent every month!
Working with a Leander manager can help you identify investment opportunities and help grow your portfolio with Leander rental homes. Contact our Austin property management company today if you have questions about Leander property management services.
4. Georgetown, Texas
Sitting North of Austin along I-35 is Georgetown, Texas. Rental homes in the Georgetown, Texas area can expect an average market rent of $2,095/month. With a composition make-up of 77% single-family homes, Georgetown offers a strong, budding community for individuals looking for a great place to live! In fact, according to 2020 U.S. Census data, Georgetown, Texas is the 7th-fastest growing city in America.
Not Austin, Georgetown, Texas - that’s a crazy statistic in itself.
We expect to see Georgetown continue to make headlines as the continued growth of Austin pushes growth North toward Georgetown, Texas.
Why Real Estate Investors Will Like Investing in Georgetown, Texas Rental Homes
The undeniable growth of Georgetown, Texas has the long-term prospect of holding real estate in Georgetown in itself a good investment. Investors who do own property in Georgetown have enjoyed a leasing time of just 22 days over the last 6 months according to ABOR data.
Why Renters Like Living in Georgetown, Texas
Georgetown, Texas provides residents with small-town charm with big-city accessibility. It’s a common theme for Austin to have great school districts throughout the metropolitan area, and Georgetown Independent School District offers parents looking to settle with their family a great spot to do so for their kid’s future. Georgetown is also the home of prestigious Southwestern University, driving top grads from across the nation to this private university.
Georgetown, Texas Scorecard
Average Days on the Market: 22 Days via ABOR MLS Data over last 6 months
Average Monthly Rent: $2,095/month
School District: Georgetown ISD
Safety Rating: Georgetown, TX Crime Stats
Population: 79,604 via U.S. Census Data
Already own a home in Georgetown, Texas, and interested in converting your home into a rental property? Find out how much your Georgetown rental property can earn in rent every month!
Working with a Georgetown manager can help you identify investment opportunities and help grow your portfolio with Georgetown rental homes. Contact our Austin property management company today if you have questions about Georgetown property management services.
5. Manor, Texas
Sitting on the east side of Austin, Manor, Texas is easily accessible from the city via U.S. 290. Investors looking to purchase rental properties in Manor, Texas can expect an average market rent of $1,789/month. Consisting of 89% single-family homes, Manor, Texas provides inventory that is attractive to investors looking to invest in Manor SFR’s.
Why Real Estate Investors Will Like Investing in Manor, Texas Rental Homes
Of the communities on this list, Manor is the smallest municipality. With just 13,866 residents per U.S. Census data, Manor is lagging behind the rest of the area when it comes to population growth over the past decade. With that said, Manor has been experiencing an influx of people moving there due to lower real estate prices and ease of access to the rest of Austin.
Looking at the continued growth of Austin, it is almost apparent that all new developments need to head North or East of the city due to the lack of land offered in the other directions. With Lake Travis to the West, we expect Manor, Texas to be the beneficiary of a booming Austin, Texas and the development that would take place should that be the case.
Also, personally, Manor has one of my favorite golf courses in our area via Shadowglen Golf Club - Grant.
Why Renters Like Living in Manor, Texas
Price-conscious tenants and those seeking lower rents are attracted to areas like Manor, Texas. Supporting the second-lowest average rent on this list, just ahead of Hutto, Manor provides an attractive living situation for those looking to stay in the Austin, Texas area. We expect that as our city and region continue to develop that Manor will be the beneficiary of a lot to come.
Manor, Texas Scorecard
Average Days on the Market: 33 Days via ABOR Data over the last 6 months
Average Monthly Rent: $1,789/month
School District: Manor ISD
Safety Rating: Manor, TX Crime Stats
Population: 13,866 via U.S. Census Data
Already own a home in Manor, Texas, and interested in converting your home into a rental property? Find out how much your Manor rental property can earn in rent every month!
Working with a Manor manager can help you identify investment opportunities and help grow your portfolio with Manor rental homes. Contact our Austin property management company today if you have questions about Manor property management services.
6. Hutto, Texas
Located on the Northeast side of Austin is Hutto, Texas. With just 27,947 residents, Hutto is set for growth as Austin continues to expand with the influx of industry and people moving to the area. With a whopping 95% of homes in Hutto being single-family homes, Hutto has the type of inventory real estate investors are seeking for investing in rental homes.
Why Real Estate Investors Will Like Investing in Hutto, Texas Rental Homes
Aside from Leander, Hutto, Texas rental homes move the quickest off-market at just 21 days on market average. As mentioned above, Austin is going through growing pains right now, and eventually, the city is going to need to expand out. Our team at Stone Oak Property Management feels that Hutto is in a great position to benefit from a booming Austin, Texas. With easy access to both the North and South sides of Austin via Hwy 79 and the 130 Toll Road both intersecting right where Hutto is located.
Why Renters Like Living in Hutto, Texas
Having recently been recognized as a ‘Top Place in Texas to Raise a Family’, making Hutto a great spot for settling your family. With 95% of the real estate in Hutto being single-family homes, Hutto provides a sense of community to its residents that you might not find as you get closer to the city. The overall cost of living is about 62% less in Hutto compared to Austin, making it a preferable pick for most when seeking affordable housing in the Austin area.
Hutto, Texas Scorecard
Average Days on the Market: 21 Days via ABOR Data over the last 6 months
Average Monthly Rent: $1,710/month
School District: Hutto ISD
Safety Rating: Hutto, TX Crime Stats
Population: 27,947 via U.S. Census Data
Already own a home in Hutto, Texas, and interested in converting your home into a rental property? Find out how much your Hutto rental property can earn in rent every month!
Working with a Hutto manager can help you identify investment opportunities and help grow your portfolio with Hutto rental homes. Contact our Austin property management company today if you have questions about Hutto property management services.