How to Buy Investment Property in Austin TX in 2025
Interested in an investment property in Austin Texas?
You’re not the only one.
Austin, Texas, is consistently ranked as one of the best places to live in the U.S., and as of 2025, it is still in the top 10 best places to live in Texas by US News and World Report. This recognition is mostly due to its strong economy, thriving job market, and lack of state income tax.
The city blends urban excitement with outdoor activities, featuring scenic trails, lakes, and parks. Known as the "Live Music Capital of the World," Austin boasts a vibrant cultural scene, top-tier dining, and a growing craft beer industry. With mild winters, a diverse and inclusive community, and the prestigious University of Texas, Austin attracts professionals, creatives, and investors looking for both quality of life and long-term growth.
Slipping from the 10th spot and now the 11th largest city in the country in terms of population, Austin still continues to draw attention from investors.
Austin — which has become a magnet for giant tech companies — has become a home to big companies like Tesla, Google, Amazon, and Oracle which have all recently expanded their operations to Austin. This brought a mass exodus from various metros such as the Bay Area.
This surge in real estate demand is a dream come true for investors.
In this Austin investment property guide, we’ll cover:
Austin real estate market trends going into 2025.
The most promising neighborhoods for investing in Austin.
How to find and finance your first investment property.
Let’s dive in.
Why invest in Austin real estate?
Austin’s explosive growth is fueled in part by the expansion of tech companies from California to Texas.
With fewer business regulations, lower taxes, and an affordable cost of living, Austin has become the new go-to hub for tech companies.
With the entry of these large companies, tens of thousands of new jobs are being created, bringing in new residents who need a place to live.
WalletHub ranks Austin as one of the fastest-growing cities in the United States. And as tech giants Apple, Samsung, and Tesla move into the city, home values climb. It’s also a promising time to own rental property in Austin. The influx of highly paid tech employees competing for housing will push rental prices up. If you stumble on a good deal, the potential rental income could make Austin the best place to buy a rental property in Texas.
So whether you’re investing in Austin real estate for the short game or you’re in it for the long haul, the future is bright.
Austin real estate market trends
Out of Texas’ big four cities, Austin has seen the most explosive growth in home prices, in recent years. As of February 2025 however, the Austin, Texas real estate market is experiencing notable shifts. The median home price has decreased to $580,000, down 7.3% from last year.
This trend positions Austin as the third-largest city in the U.S. for home price reductions, following Miami and San Francisco. Despite these challenges, Texas continues to attract new residents and businesses, with projections indicating it could become the nation's largest state by 2045. This influx suggests potential for future market stabilization and growth.
Hot Neighborhoods for Austin Investment Properties
Austin’s real estate market continues to evolve, offering investors a variety of prime neighborhoods with strong growth potential. Whether you’re looking for short-term rental opportunities, long-term appreciation, or family-friendly investments, these five neighborhoods stand out as some of the best places to buy in 2025.
East Austin
East Austin remains one of the most dynamic and rapidly growing areas in the city. Known for its artsy vibe, top-rated restaurants, and close proximity to downtown, this neighborhood attracts young professionals, creatives, and investors alike. The area features a mix of modern condos, historic bungalows, and new developments, making it a hotspot for diverse investment opportunities.
Real estate trends in East Austin show steady appreciation, even amid market slowdowns. The high volume of new developments and mixed-use properties makes this an attractive location for investors seeking luxury townhomes or short-term rentals. Strong demand ensures rental properties remain competitive, offering reliable cash flow and long-term value growth.
South Congress (SoCo)
One of Austin’s most iconic neighborhoods, South Congress—commonly known as SoCo—is a top choice for investors seeking high-value properties in a thriving cultural district. The area is famous for its walkability, vibrant nightlife, boutique shopping, and unique dining experiences, making it an attractive destination for both residents and visitors.
Despite price adjustments in other parts of Austin, home values in SoCo have remained strong. The short-term rental market is highly competitive, with prime-location properties generating strong returns. However, investors should be mindful of Austin’s evolving regulations on short-term rentals when considering investment strategies in this area.
Mueller
Mueller, a thoughtfully designed master-planned community, has become a highly sought-after neighborhood for families, professionals, and investors. Featuring modern homes, apartments, and townhouses, the area offers a mix of housing options with easy access to parks, shopping centers, and downtown Austin.
One of the key advantages of investing in Mueller is its steady appreciation. High demand for energy-efficient homes and sustainable living has kept property values stable, even during market fluctuations. With ongoing new construction projects, inventory levels remain balanced, making Mueller a resilient market for long-term investment opportunities.
Circle C Ranch
For investors looking at the suburban housing market, Circle C Ranch stands out as one of the most stable and family-friendly communities in Austin. Located in southwest Austin, this neighborhood is known for its top-rated schools, spacious homes, and excellent amenities, making it highly desirable for families and professionals seeking more space while staying close to the city.
Home values in Circle C Ranch have remained strong, with continued demand from buyers relocating from high-cost regions like California. While appreciation rates may slow compared to peak years, this area remains a safe long-term investment for rental properties or resale. Investors targeting family-friendly rental markets will find solid opportunities in this neighborhood.
North Loop
For investors seeking affordability and future appreciation potential, North Loop is a neighborhood worth considering. Located just north of downtown, this area offers a mix of renovated vintage homes and new developments, attracting young professionals and first-time homebuyers.
North Loop’s affordability compared to central Austin makes it a prime location for long-term rental properties. Rental demand remains high, and as Austin continues to expand, property values in this area are expected to rise. Investors looking for an up-and-coming neighborhood with growth potential should keep an eye on North Loop.
Each of these hot Austin neighborhoods offers unique investment opportunities, from trendy urban districts to stable suburban communities.
Whether you’re focusing on short-term rentals, long-term rental income, or value appreciation, these areas provide promising returns in the evolving Austin real estate market.
How to buy an investment property in Austin, Texas
The process for investing in Austin real estate can be broken into five steps:
1. Choose a type of investment property
There are many ways to build wealth with real estate. Your first step is to decide which strategy is right for you.
Do you want a single- or multi-family home? Are you up for a fix-and-flip or a BRRRR? Or do you prefer a turnkey rental property with tenants locked in? What about a new construction project?
Decide how you will finance your investment property before you start property hunting.
The best investment properties in Austin don’t last long on the market — especially in such an extreme housing shortage. You need a game plan in place so that when you find a winning property, you can snatch it up.
There are three main ways to finance an investment property.
Conventional loan. Banks and conventional lenders generally offer the lowest interest rates, but they also have strict requirements, force you to jump through hoops, and can take months to close.
Hard money loan. Hard money loans come with slightly higher rates, but they’re designed with investors in mind. They’re quick to close and have less stringent personal financial history requirements. Loan approval is largely based on the investment opportunity of the property itself.
Joint venture. You can finance the property by pooling together funds from various investors, but this is more of an advanced move. To recruit investors, you’ll want a strong track record of successful projects.
Whichever route you choose, build relationships ahead of time. If you go with conventional lending, get a pre-approval. And if you’re considering a hard money loan, talk to some private lenders ahead of time. This streamlines the process, and they can help you assess the viability of your investment ideas.
3. Go property hunting
Start by choosing a location, then network with wholesalers and agents who specialize in that area and might be able to help you find off-market opportunities that aren’t listed on the MLS.
When evaluating properties, make sure to consider:
Job and population growth
Future development projects
Housing and rental price trends in the area
Percentage of renter- vs. owner-occupied homes
Vacancy rates
Don’t forget to factor in all your expenses and calculate estimated returns.
4. Secure financing
If using a bank or traditional lender, this involves piles of paperwork, an appraisal, inspections, and a lengthy underwriting process — typically 30 to 45 days.
With a hard money lender, the timeline depends on the type of loan you choose. At Longleaf, rental loans process in as little as two weeks, and short-term residential loans (AKA bridge loans) take as little as 48 hours.
5. Refinance (if necessary)
If you take out a bridge loan for fast financing, you eventually need to refinance. Bridge loans are meant to “bridge” you over from the time of purchase to the time of refinancing — usually 6 to 24 months.
You can refinance with a conventional loan if you qualify. If not, a long-term rental loan comes with fewer restrictions.
At Longleaf, we can save you fees by bundling your bridge loan together with your refinance.
Need financing for an investment property in Austin?
Longleaf Lending is a Texas-based private lender and offers flexible loan programs designed for property investors who need to close as fast as possible. If you have any questions about investment property financing, give us a shout at 979-200-2823 or info@longleaflending.com.
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