The Austin Business Journal recently published an article about the population of Austin that found numbers are projected to almost double in the next 25 years. However, these kinds of market and population predictions aren't definitive. Some very smart people have crunched their numbers and analyzed the trends, but there are a multitude of factors that can't be foreseen. Predicting population growth isn't an exact science, but it does give us an idea of where trends are heading. Even if the populous doesn't double, do expect to see growth of some kind.
What does this mean for Austin real estate prices though?
The Effect On The Housing Market
Intuitively, we might think an increasing population will lead real estate rates to rise. More people means a higher demand for places to live, suggesting the value of homes should increase. While this certainly can happen, it isn't always necessarily the case. Population growth isn't the only factor at play. A dynamic cocktail of interest rates, the economy, government policies, and other unpredictable factors all work together to influence housing prices.
Regardless of whether Austin real estate rates skyrocket or stay the same, with an influx of bodies entering the city, it might be a good time to invest in a rental property and its many benefits. While you may have to borrow money from the bank to purchase the place, in most cases, the rent you collect from your tenant will cover the cost of the monthly mortgage payment. Until one day, you own the place outright and are making a monthly profit off of your initial investment.
Where to Buy Rental Properties in Austin
Rental properties are a business venture, and they can be a fairly reliable one, given you choose a location that is likely to stay in demand.
Certain regions, like Downtown Austin, will always be popular. Right now, the condos at the heart of the activity, sell for anywhere between $200,000 and $6 million. In view of the beautiful Colorado River, these homes and their value are only likely to go up as businesses in the downtown core expand and populations grow.
With a large student body being admitted to the University of Texas annually, there are always fresh young faces looking for a temporary place to live. UT campus is located just north of Downtown, making the UT area an ideal district to own a rental property. Suites in the nearby neighborhoods of West Campus and University Hills are also popular with students searching for affordable, convenient rentals.
UT isn’t the only university in town. There's also St. Edward's University in South Austin and Houston-Tillotson University in East Austin.
If you're planning to make a long-term venture, you might consider new developments. Urban sprawl is a regular development in any healthy city. The regions of Windsor Park and Mueller are home to recent development, and are often popular student housing options.
Wherever you decide to buy, think about what the area has to offer. In part, this will determine what kind of tenant you have. A quiet professional needs to be near their place of work. A university student needs to be close to their chosen institution. A family needs ample space for their children to grow and play.
To learn more about investing in a rental home in the Greater Austin Area contact JB Goodwin Realtors today. We can provide the expert advice you need to get where you want to be.