For the real estate owner/operator, 2019 will be about looking good. That is, making your portfolio a safe bet for underwriters. The long-standing soft commercial

Should I buy real estate now in Austin?

Yes! According to the Emerging Trends in Real Estate report’s forecast for 2018, Austin ranks second on the list of cities to watch in the US with the most positive real estate market outlook. Here’s why you should buy an investment property in Austin real estate:

#1 Healthy Economy

The majority of the Austin real estate market’s strength is owed to the city’s thriving economy and consequently healthy job sector. Austin has become a hub for large businesses and great careers, especially in the tech industry, which has a positive impact on the city’s economic performance. This contributed to the population growth and the supply and demand within the housing market.

#2 Population Growth

The positive economic and employment outlook affects the population growth – more employees and people who need jobs are attracted to the city. This is another key incentive for buying an investment property in the Austin real estate market. In fact, Austin is one of the fastest growing cities in the country, and experts expect that the population will continue to grow throughout 2018 and into the next few years.

Austin is one of the top Green Cities with plenty of outdoor activities. This is a lifestyle that many people are seeking, especially millennials who have already recognized Austin as one of the top destinations to relocate to, and now represent one-third of the city’s population. With more and more people looking for places to live in, this is a great opportunity for real estate investors thinking of buying an investment property and renting it out.

#3 Supply and Demand

The increasing population along with the steady property inventory has fueled and created more demand for Austin real estate. The increasing demand and low supply results in rising home values. In addition, homes are sold twice as fast in the Austin real estate market than the national average. According to Redfin, investment properties for sale in the Austin real estate market spent a median of 18 days on the market during June 2017, while the national median was 36 days. This is obviously good news for real estate investors buying an investment property in the Austin housing market for the purpose of selling it, as buyers are quick to purchase investment properties once they find them.

#4 Rising Mortgage Rates

If the rising home prices were not enough to urge buying an investment property in Austin, consider the rising mortgage rate. Although mortgage rates have been low recently, the chances of them staying down are low. Right now, the average rate in the Austin housing market is around 4%, but Realtor.com predicts that mortgage rates will gradually rise and hit 6% by 2019 or 2020.

The message here is loud and clear: Real estate investors planning on buying an investment property in Austin should consider making the purchase sooner rather than later due to the forecasted higher costs down the road.

Austin Real Estate Market Statistics

Now that we’ve covered the key factors that make Austin real estate attractive for real estate investors planning on buying an investment property, here’s an overview of this housing market’s statistics as calculated by Mashvisor’s investment property calculator:

  • Median Property Price: $474,144
  • Traditional Monthly Rental Income: $2,006
  • Traditional Cash on Cash Return: 1.03%
  • Traditional Cap Rate: 1.03%
  • Airbnb Monthly Rental Income: $2,768
  • Airbnb Cash on Cash Return: 2.17%
  • Airbnb Cap Rate: 2.17%

Overall, the Austin real estate market is one of the best and hottest markets in the country. So, if you’re looking to buy an investment property, you should definitely consider investing in Austin!