Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Report: Austin Rental Market Good For Investors

Austin makes a list of best cities in which to invest in rental property.
Photo by Nathan Bernier for KUT News
Austin makes a list of best cities in which to invest in rental property.

The company behind those “We Buy Ugly Houses” billboards just released a study on the best cities to invest in rental properties, and Austin made 24th on the list.

HomeVestors of America produced the ranking with the help of Local Market Monitor, a real estate analysis firm. It found that Austin had a “risk-return premium” that was 1.3 percent better than the national average of 5.3 percent.

In other words, investors should demand a return of 6.6 percent, on average, if they are investing in a rental property in Austin.  That would be in addition to any rental income left over after costs like mortgage payments and repairs.

A report issued in April by real estate analyst Marcus and Millichap predicted that rents will rise by an average of 4.2 percent in Austin this year.

Nathan Bernier is the transportation reporter at KUT. He covers the big projects that are reshaping how we get around Austin, like the I-35 overhaul, the airport's rapid growth and the multibillion-dollar transit expansion Project Connect. He also focuses on the daily changes that affect how we walk, bike and drive around the city. Got a tip? Email him at nbernier@kut.org. Follow him on X @KUTnathan.