According to Realtor.com and data from the National Association of Realtors, Austin is the second-best real estate investment market in the Country. Out of 146 markets analyzed nationwide, Austin placed second after Tucson, Arizona.
Austin ranks high for the potential for market appreciation and ability to generate financial returns through renting. With a very strong rental market, rapidly increasing rents, and low interest rates, more people are purchasing investment properties in Austin. According to the Austin Business Journal, “Austin’s potential for price growth is one of the best in the nation and the median list price of $229,500 is about 12 percent higher than a year ago.”
The Top 10 Real Estate Investment Markets:
1. Tucson, Ariz.
3. Kansas City, Mo.
5. Fort Worth, Texas
6. Salt Lake City
7. San Jose, Calif.
8. Raleigh, N.C.
10. St. Louis
With high downtown rents and low interest rates, an increasing number of buyers are looking to invest in downtown condos, funding the payments by renting the units out. While it is increasingly possible to make such investments “cash flow positive,” many building restrict speculative purchases by limiting the ability to rent out units. Some buildings have special rental deeds which require larger deposits.