Real Estate Investing in Austin, Texas (78701)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78701 (Austin, TX)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- Declining values: -1.5% 5-year CAGR — values have moved lower.
- Elevated vacancy: 9.0% vacancy may signal weakening demand.
What’s happening in Austin, TX (78701)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 78701 Austin
Investors eyeing 78701 need to respect the fundamentals at play. Home values of $660K come alongside slower price movement and elevated management overhead.
Put differently, the numbers look inviting — $660K purchase price, 0.0% nominal cap — the work to hit that pro forma in 78701 is substantial and deserves full respect.
ZIP 78701's metrics run below Travis County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
A impressive renter share of 51% in 78701 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Strategically, 78701 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Austin:
Property Strategy for 78701
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $481,576 | $2,350 | 3.5% | +3.4% | $481,576 |
| 2BR | $847,015 | $2,780 | 2.4% | +3.8% | $423,507 |
| 3BR | $2,136,654 | $3,520 | 1.2% | +1.7% | $712,218 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 78701 Compare?
| Metric | 78701 | Austin | Austin-Round Rock-Georgetown, TX | Texas |
|---|---|---|---|---|
| Home Value | $660,440 | $561,613 | N/A | $297,000 |
| 5-Year CAGR | N/A | N/A | N/A | 5.4% |
| Avg Rent | $2,937 | $1,810 | N/A | - |
| Cap Rate | 3.5% | 2.7% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 78701 (Austin, TX). Anonymous, moderated, never written by AI.
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Property managers serving Travis County
Manage rentals here? List your business →512-Society Property Management provides single-family and multi-family property management services across North Austin and Round Rock since 2005. summary from their website
Darwin Homes offers tech-driven property management services, making renting easy with 24/7 support, smart locks for viewings, and assistance with moving and utility setup. summary from their website
Guest Haus Property Management offers Airbnb and vacation rental management services in Austin. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $660,440 |
| Monthly Rent | $2,937 |
| Price-to-Rent | 18.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.3% |
| Cap Rate | 3.5% |
| 5-Year IRR | 2.0% |
📈 Home Appreciation
| 1-Year | -2.4% ▼ |
| 3-Year CAGR | -5.6% ▼ |
| 5-Year CAGR | -1.5% ▼ |
| 10-Year CAGR | +1.5% ▲ |
🏠 Rent Trends
| 1-Year | +2.5% ▲ |
| 3-Year CAGR | +0.2% ▲ |
| 5-Year CAGR | -0.2% ▼ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.5%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 78701
Population: 11,114
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 78701
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
GALINDO EL
GOVALLE EL
BLACKSHEAR EL
DAWSON EL
MARTIN MIDDLE
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 5,732 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Does house hacking make sense in Austin, TX?
The a challenging house-hack environment in Austin, TX reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
How strong is Austin, TX for real estate investors?
Our data puts Austin, TX at 2.0/5 for investability. Home prices of $660K and rents around $2,937/mo create a solid backdrop for investor activity.
What is the typical renter like in Austin, TX?
Tenant demand in Austin, TX is solid. The local workforce $2,937/mo rents across most rental classes.
Where do rents currently stand in Austin, TX?
Rent in Austin, TX is around $2,937/mo. The resulting rent-to-value relationship with $660K pricing is reasonable for most investor models.
What is it like being a landlord in Austin, TX?
The landlord environment in Austin, TX is landlord-friendly. Statewide rules shape most day-to-day operations for rental owners.
You know 78701 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 78701 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 78701 ranks in Austin-Round Rock-Georgetown, TX
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