Real Estate Investing in Austin, Texas (78704)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78704 (Austin, TX)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- Declining values: -1.7% 5-year CAGR — values have moved lower.
- High price-to-rent: Price-to-rent ratio 32.3 — hard to cash-flow at these prices.
What’s happening in Austin, TX (78704)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 78704 Austin
Not every below-median market is a bargain. Austin's 78704 ZIP shows signals that favor experienced operators who can absorb the risk $731K pricing implies.
For an experienced owner, 78704 can be a a viable market for hunting ground — but the discount at $731K reflects genuine risk that outside investors often underestimate.
On balance, 78704 offers a low basis, the region around Austin has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
A substantial renter share of 68% in 78704 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
The 78704 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Austin:
Property Strategy for 78704
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $334,513 | $1,770 | 3.8% | +1.0% | $334,513 |
| 2BR | $556,319 | $2,100 | 2.7% | +2.8% | $278,160 |
| 3BR | $884,517 | $2,660 | 2.2% | +4.2% | $294,839 |
| 4BR | $1,432,628 | $3,130 | 1.6% | +6.1% | $358,157 |
| 5BR | $1,993,362 | — | — | +7.3% | $398,672 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 78704 Compare?
| Metric | 78704 | Austin | Austin-Round Rock-Georgetown, TX | Texas |
|---|---|---|---|---|
| Home Value | $731,493 | $561,613 | N/A | $297,000 |
| 5-Year CAGR | N/A | N/A | N/A | 5.4% |
| Avg Rent | $1,887 | $1,810 | N/A | - |
| Cap Rate | 2.0% | 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 78704 (Austin, TX). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 78704 (Austin, TX)?
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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 | $731,493 |
| Monthly Rent | $1,887 |
| Price-to-Rent | 32.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.1% |
| Cap Rate | 2.0% |
| 5-Year IRR | 0.3% |
📈 Home Appreciation
| 1-Year | -0.7% ▼ |
| 3-Year CAGR | -5.3% ▼ |
| 5-Year CAGR | -1.7% ▼ |
| 10-Year CAGR | +3.9% ▲ |
🏠 Rent Trends
| 1-Year | +0.7% ▲ |
| 3-Year CAGR | -1.5% ▼ |
| 5-Year CAGR | +0.2% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.0%). 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 78704
Population: 50,479
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 78704
Schools in This ZIP Code
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
Frequently Asked Questions
Does Austin, TX make sense for an investment property?
Austin, TX rates 2.0/5 for investability. With median values at $731K and rents near $1,887/mo, the market offers reasonable fundamentals for rental investors.
What do landlords charge for rent in Austin, TX?
Rents in Austin, TX run near $1,887/mo. Compared with median home prices of $731K that produces solid gross yields for typical rentals.
Can owner-occupants cash flow in Austin, TX?
House hacking in Austin, TX is reasonable to execute. Prices around $731K and rents of $1,887/mo solid owner-occupant economics.
Are there empty rentals in Austin, TX?
Austin, TX vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
What is the typical home price in Austin, TX?
Typical homes in Austin, TX go for around $731K. The 5-year CAGR of 0.0% consistent price movement.
You know 78704 now. You don’t know where it ranks.
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How 78704 ranks in Austin-Round Rock-Georgetown, TX
Every ZIP in this metro, ranked. Free.
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