Real Estate Investing in Austin, Texas (78738)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78738 (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: -0.7% 5-year CAGR — values have moved lower.
- High price-to-rent: Price-to-rent ratio 29.6 — hard to cash-flow at these prices.
What’s happening in Austin, TX (78738)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 78738 Austin
This part of Travis is not an easy win. The 78738 ZIP registers softness in key indicators, and the playbook that works in cleaner markets often stalls here.
Rent of $2,385/mo on a $846K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 78738 sits below the stated 0.0% once reality is priced in.
The gap between 78738 and stronger Austin ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
Who lives in 78738 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
Strategy in 78738 is an operator game, not a passive one. From a cash-flow lens, entry prices of $846K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Austin:
Property Strategy for 78738
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $493,845 | $2,230 | 3.3% | +4.1% | $246,923 |
| 3BR | $609,546 | $2,830 | 3.3% | +5.0% | $203,182 |
| 4BR | $826,752 | $3,320 | 2.9% | +5.9% | $206,688 |
| 5BR | $1,135,038 | — | — | +7.0% | $227,008 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 78738 Compare?
| Metric | 78738 | Austin | Texas |
|---|---|---|---|
| Home Value | $846,276 | $561,613 | $297,000 |
| 5-Year CAGR | N/A | N/A | 5.4% |
| Avg Rent | $2,385 | $1,810 | - |
| Cap Rate | 2.2% | 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 78738 (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 | $846,276 |
| Monthly Rent | $2,385 |
| Price-to-Rent | 29.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.4% |
| Cap Rate | 2.2% |
| 5-Year IRR | 1.5% |
📈 Home Appreciation
| 1-Year | +0.4% ▲ |
| 3-Year CAGR | -3.6% ▼ |
| 5-Year CAGR | -0.7% ▼ |
| 10-Year CAGR | +4.8% ▲ |
🏠 Rent Trends
| 1-Year | -16.3% ▼ |
| 3-Year CAGR | -5.7% ▼ |
| 5-Year CAGR | -3.4% ▼ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.2%). 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 78738
Population: 28,790
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 78738
Schools in This ZIP Code
About Repit School Scores
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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
How much should I expect to pay for a home in Austin, TX?
Median home price in Austin, TX is near $846K, with a 5-year CAGR of 0.0%. Prices have been stable and supportive of buy-and-hold strategies.
How strict are landlord regulations in Austin, TX?
TX law landlord-friendly for landlords, and Austin inherits those rules. Investors should still review local ordinances for rental licensing.
Is Austin, TX a good place for real estate investing?
Austin, TX scores 2.0/5 for investability. Home values sit at $846K and rents near $2,385/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
What are rental rates like in Austin, TX?
Expect rents around $2,385/mo per month in Austin, TX. With home values at $846K, the yield math works out to reasonable levels for rental investors.
What kind of tenants rent in Austin, TX?
Expect a solid tenant pool in Austin, TX. The rental market absorbs $2,385/mo rents without meaningful friction.
You know 78738 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 78738 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.
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