Austin's Best Areas to Buy Airbnb/VRBO Investments in 2023
The Austin real estate market is going strong and short-term rentals are finally catching up. Here are some of the best areas to buy Airbnb & VRBO property.
The real estate market in Austin has been red hot, especially within the last decade. The COVID-19 pandemic drove demand for new homes up while the inventory stayed about the same. The pandemic had a negative effect on the vacation and short-term rental markets with fewer people traveling and using companies like Airbnb and Vrbo to rent houses or condos.
While the market for home sales doesn’t seem to be slowing down much, the markets for vacation and short-term rentals have been picking up over the past year. If you’re considering investing in the Austin Airbnb/VRBO scene, check out these hotspot locations to buy in.
Best Airbnb/VRBO Locations in Austin
Home prices in Austin have skyrocketed in recent years. As a result, so have rental rates. While buying a home might cost you more now than it would have in 2018 or 2019, the potential return could be greater. Austin saw almost no tourism or other visitors during the first half of 2020 because of stay-at-home orders and other public health measures. Now it’s as bustling and lively as ever.
An expanding central entertainment hub: MLK
Photo by Lars Plougmann from Flickr [Creative Commons]
The neighborhood around the area where East MLK Boulevard intersects with U.S. Highway 183 is one of the best in the city for short-term rental investments, according to the data analytics firm Mashvisor. The area is several miles from downtown Austin and quite close to up-and-coming areas like Mueller. It is also the site of a rather substantial amount of new development, with many newly-built houses and condo complexes.
The neighborhood is the perfect distance from the high-priced city center. Home prices in MLK average close to $500,000, which is at least $100,000 below the median home price for the city as a whole. At the same time, most of the city is easily accessible from MLK. The eponymous road will take you close to both downtown and the university football stadium, and locations like Circuit of the Americas and the Tesla Gigafactory are a straight shot down highway 183.
Bustling local culture and nightlife: East Cesar Chavez
Photo by Kari Sullivan from Flickr [Creative Commons]
Located a little further south and a bit closer to downtown Austin, this historic neighborhood is one of the hottest in Austin. Mashvisor reports that 40% of the neighborhood consists of restaurants, bars, and music venues. The median home price is close to the city’s median price, but the neighborhood’s short-term rentals reportedly have an occupancy rate of almost two-thirds.
Peaceful outer-city haven: Garrison Park
The appeal of this south Austin neighborhood appears to be its quiet charm, rather than its proximity to any Austin nightlife. Garrison Park is located south of U.S. Highway 290, bordered by S. 1st Street to the east, Stassney to the north, and William Cannon to the south. It offers quick access to several parks, so people who enjoy the outdoors are sure to love it here. The median home price is around $580,000, and the average monthly rental income is about $3,800, according to Mashvisor.
Photo by Shrie Bradford Spangler from Flickr [Creative Commons]
Best short-term rental locations near Austin
While Austin has many neighborhoods that are in high demand, it also has a city government that tends to be skeptical of short-term rentals. The Austin City Council has enacted various ordinances regulating this market. While enforcement of those regulations reportedly fell by the wayside somewhat during the COVID-19 pandemic, the city may be starting it up again.
Some excellent opportunities for short-term rentals in the Austin area are outside of the city itself, either in unincorporated areas of the county or in other towns.
Affordable Austin neighbor community: Del Valle
Photo by Rick Kimpel from Flickr [Creative Commons]
This community just southeast of Austin includes both unincorporated land and territory annexed by the City of Austin. It has been home to Austin-Bergstrom International Airport for over twenty years. It has seen significant growth in recent years thanks to the addition of the Circuit of the Americas, the Austin360 Amphitheater, and the Tesla Gigafactory. This growth is likely to continue, making it a place where both business visitors and tourists may choose to stay.
An entry level, long-term play for short rentals: Lockhart
Photo by Heather Cowper from Flickr [Creative Commons]
Lockhart is the Barbecue Capital of Texas, an occasional location for film and television production, and the possible future site of a new semiconductor plant. On top of all that, it is only a thirty-minute drive from downtown Austin. All of these factors make it an appealing location for visitors. Home values are significantly lower than in Austin, but demand for short-term rentals seems likely to increase.
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