Austin, Texas isn’t just the capital of Texas. It’s also one of the hottest real estate markets in the country, ranked number three out of all large U.S. cities. With tech giants continuing to relocate here and a growing population drawn to its artsy culture and economic opportunities, it’s thriving all around. More people are opting to stay away from the city center, turning to the suburbs for more affordable living options and extra space.
If you’re a landlord in Austin, this shift presents an incredible opportunity as a real estate investor. Austin suburbs offer lower property costs, high rental demand, and amenities highly sought after by tenants. Whether you’re just starting to dip your toes in rental property investment or you’ve been growing your portfolio for a while, you won’t want to overlook these five suburbs.
Reasons to Invest in Austin Suburbs
What makes the Austin suburbs a great area for a landlord to invest in? A combination of affordability, growth, and tenant appeal all play a part. Austin continues to attract corporations and remote workers, who are all gravitating toward the city’s lower costs. This means there’s no shortage of renters, as new jobs are created regularly.
Suburban homes also cost less than their urban counterparts, giving investors lower initial costs and better ROI. Austin’s top-rated schools, parks, and community spaces give tenants the life they desire, all without having to own a home. With the Austin Metrorail connecting many suburbs to downtown, these areas are even more convenient for commuters. With a flourishing local economy, property values will stay strong, posing less risk of vacancies and ensuring consistent demand for rentals.
Top 5 Austin Suburbs for Rental Property Investors
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Round Rock
Ranked as the eighth fastest-growing city in the U.S., Round Rock is 15 miles north of Austin and recognized as one of the country’s most livable towns. From its Historic Main Street filled with shops and restaurants to its endless number of community events, Round Rock has a personality that renters love.
Spaces like Old Settlers Park make it ideal for families, where they can bike, picnic, and play sports. Home to Dell Technologies’ global headquarters, the area also attracts plenty of professionals who prefer renting.
The average home costs $427,023 in Round Rock, giving investors a prime opportunity to enter the real estate market at an affordable rate. Here’s a breakdown of the average rent prices in Round Rock:
All property types: $2,100
Single-family homes: $2,200
Townhomes: $2,100
Apartments/condos: $1,472
Round Rock stands out for its livability and economic opportunity, making it a suburb investors won’t want to miss.
Pflugerville
Pflugerville is a rising star among Austin’s suburbs. Situated just 18 miles northeast of the city center, it’s known for its well-maintained parks, family-friendly atmosphere, and popular recreational spots like Lake Pflugerville, where people enjoy fishing, kayaking, and picnicking.
With easy access to the Austin Metrorail and major highways, Pflugerville is an excellent choice for commuters. The area continues to add more housing developments and retail centers, adding appeal for tenants and landlords.
As a landlord, you can capitalize on affordable properties in the area, as the median home price sits at $388,921. Here are the average rental prices in Pflugerville:
All property types: $2,100
Single-family homes: $2,150
Townhomes: $2,075
Apartments/condos: $1,602
Pflugerville’s affordability, growth, and lifestyle perks make it a great pick if you’re an investor looking to stay in the game long-term.
Cedar Park
Just 25 miles north of downtown Austin, Cedar Park is perfect for commuters who want the perks of city life without the chaos that can often come with it. Known for its laid-back vibes, excellent schools, and sprawling parks, young professionals and families enjoy calling it home.
Cedar Park is a stop on the Austin Metrorail, giving residents easy access to downtown. Lake Travis and the Brushy Creek Regional Trail are also nearby, making it well-loved by outdoor enthusiasts.
Homes in Cedar Park average $485,991, and average rental prices are as follows:
All property types: $2,190
Single-family homes: $2,245
Townhomes: $2,000
Apartments/condos: $1,843
If you’re a landlord wanting a reliable investment option, Cedar Park is a clear winner.
Bee Cave
Of all the suburbs on this list, Bee Cave is the most upscale, attracting residents willing to pay a premium for the kind of lifestyle it offers. Its prime location—12 miles west of Austin—and high-end amenities make Bee Cave stand out.
The Hill Country Galleria, a premier shopping, event, and dining center, is one of the most popular spots in the area, serving as a central hub for residents. Nature lovers are also drawn to Bee Cave because of the easy access to Lake Travis and other parks. Families value its superior school system, safe neighborhoods, and year-round activities.
The average home in Bee Cave sits at a staggering $895,953, but the high rental rates can make the investment worthwhile. A landlord can expect the following averages for rent in Bee Cave:
All property types: $3,295
Single-family homes: $3,500
Townhomes: $4,750
Apartments/condos: $1,641
What used to be a blip on the map is now a thriving community, fitting for an investor looking to target higher-income tenants and secure premium rental rates.
Dripping Springs
While not as upscale as Bee Cave, Dripping Springs still appeals to renters wanting an elevated lifestyle that feels more rural. Just 23 miles west of Austin and coined the “Gateway to the Hill Country,” there are all sorts of fun activities here, including vineyards, live music venues, breweries, and an endless number of outdoor wonders.
The median cost of houses in Dripping Springs is $712,537, making it pricier than most other suburbs on this list. Average rent prices in Dripping Springs are as follows:
All property types: $2,400
Single-family homes: $2,950
Townhomes: $2,125
Apartments/condos: $1,878
With its Hill County allure and steady demand for rental properties, Dripping Springs is a smart option for an investor.
Seize Your Austin Investment Opportunity
As Austin, Texas continues to grow, these five suburbs are only becoming more attractive to renters, especially as cities pour resources into making them better. The earlier you can invest, the greater potential you’ll have for consistent returns.
The opportunities in Austin’s suburbs may be too good to pass up, but it’s easy to feel overwhelmed by the investment process. Why not save yourself the hassle of figuring everything out alone and team up with a property management company like Evernest? With local expertise and the professionalism to match, you’ll be well on your way to growing your portfolio.
