Austin, Texas, is a fast-growing city with approximately 1-million residents. Among them are over 100,000 students who attend The University of Texas at Austin, Austin Community College, and, to a lesser extent, Texas State University.
If you’re considering investing in off-campus student housing rentals in Austin, here are the city’s top student friendly neighborhoods.
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1. Downtown Austin
- Median home price: $849,800
- Median price per square foot: $818
- Rental vacancy rate: 11.3%
- Closest College: The University of Texas at Austin
- Distance to UT Austin: 1 mile
- Access to public transportation: MetroBus, MetroRapid, and MetroRail service
- Median rental income: $2,719/month
Downtown Austin is a vibrant and energetic neighborhood known for being the heart of the city’s arts and entertainment scene. The area is filled with offices, condos, restaurants, theaters, and other spots that appeal to locals and tourists alike.
Students like Downtown Austin for its liveliness and walkability. The University of Texas at Austin campus is within walking distance, and there’s no shortage of things to do. While the high price of rent does exclude many students from the area, those who can afford it are willing to pay for a great location.
As an investor, you’ll like Downtown Austin for its thriving economy and strong real estate market. In addition to being close to campus, the neighborhood is in-demand for its proximity to the Texas Capitol, its tourist destinations, and the many companies that call its shining towers home.
2. West Campus
- Median home price: $375,000
- Median price per square foot: $411
- Rental vacancy rate: 6.2%
- Closest College: The University of Texas at Austin
- Distance to UT Austin: 1 mile
- Access to public transportation: MetroBus and MetroRapid service
- Median rental income: $1,225/month
As the name promises, West Campus (also known as West University) is immediately west of UT Austin. The neighborhood features an eclectic mix of single-family homes, mid-rise condo buildings, and a smattering of bars and restaurants.
Students like West Campus for its affordable off-campus housing within walking distance to UT Austin. The area has great access to public transit, and many students choose to bike to class.
You’ll like West Campus for its abundance of investment options. Homes can be found here for less than $300,000 and range from detached houses to newly built condominiums. The City of Austin is interested in increasing density to house the growing student population, so West Campus is a good place to look if you want to invest for redevelopment.
3. North University
- Median home price: $374,500
- Median price per square foot: $464
- Rental vacancy rate: 6.2%
- Closest College: The University of Texas at Austin
- Distance to UT Austin: 1 mile
- Access to public transportation: MetroBus and MetroRapid service
- Median rental income: $1,270/month
To the north of the UT Austin campus is North University, an aptly named residential neighborhood primarily made up of single-family homes.
Unlike West Campus, North University has a suburban feel, attracting students who want to escape the downtown noise without having to take the bus to school. For longer trips, the neighborhood has bus rapid transit with 15-minute service, even on weekends.
For investors, North University offers a variety of single-family homes with prices starting around $300,000. There is also a small number of multi-unit properties and condo units available.
4. Riverside
- Median home price: $712,000
- Median price per square foot: $414
- Rental vacancy rate: 7.7%
- Closest College: The University of Texas at Austin
- Distance to UT Austin: 3.6 miles
- Access to public transportation: MetroBus and MetroRapid service
- Median rental income: $1,688/month
Separated from Downtown Austin by the Colorado River, Riverside is a medium-density neighborhood populated with apartment buildings, condos, and single-family homes.
Students like Riverside for its plethora of rental options and proximity to campus; the UT Austin campus is just a 30-minute bus ride away. And closer to home, East Riverside Drive features lots of choices for food and shopping.
As an investor, you’ll find a variety of property types in Riverside, ranging from 1-bedroom bungalows to 2-story houses, condos, and purpose-built apartment complexes. There are also a few gated communities in the neighborhood if you’re looking for a lower-maintenance investment.
5. Round Rock
- Median home price: $499,000
- Median price per square foot: $236
- Rental vacancy rate: 6.0%
- Closest College: Texas State University at Round Rock
- Distance to UT Austin: 16.5 miles
- Access to public transportation: MetroBus and MetroRail service
- Median rental income: $1,455/month
Just north of Austin, Round Rock is a city of 120,000 that’s also home to the new Texas State University campus. While most TSU students attend the San Marcos campus, roughly 30 miles south of the city, the relatively new Round Rock campus is home to about 2,000 students and is growing rapidly.
TSU Round Rock students are attracted to the city for its proximity to campus. The area is served by bus transit, although many students prefer to drive to school. Downtown Austin is accessible via a daily express bus and CapMetro’s MetroRail service.
Round Rock presents an interesting opportunity for investors thanks to TSU’s expansion in the area. While real estate prices are lower in Round Rock than in Austin, the median rent is not. That means you can get a faster return on your investment in Round Rock than in Austin. And as the TSU campus continues to drive demand for off-campus housing, there’s a potential for your investment to gain value over time.
Is Austin a Good Real Estate Investment?
As the song goes, if you can make it there, you’ll make it anywhere. With Austin, plan to buy and hold for a profitable investment. Numbers change all the time, though. Take the time to speak with an agent who lives in your areas of interest and use our Rental Property ROI Calculator to evaluate your Austin rental property deal.
FAQs
Austin’s two largest schools are the University of Texas at Austin and Austin Community College, with a combined student population of 110,000. Just outside the city, a further 39,000 students attend Texas State University.
Austin is very friendly to landlords. There are no limits on rent increases, and when necessary, evictions can be carried out quickly and efficiently.
Yahoo Finance called Austin the country’s hottest real estate market in 2021. If the city continues to grow as it has been, you could enjoy a strong return on your investment. However, there’s always the possibility that the bubble could burst. Carefully research any market and property before you invest, and don’t count on current trends to continue unabated. Use our Rental Property ROI Calculator to evaluate your next Austin rental property deal.
