If you’re an out-of-state investor looking to expand your portfolio, it’s time to put Austin on your radar. The city’s population is skyrocketing—doubling every 20 years since the 1800s. Its tech industry is also booming, attracting young professionals and families seeking stability.
However, Austin’s appeal also goes beyond its economy. Known for its nightlife, diverse cultural scene, outdoor activities, and music festivals, the city consistently ranks as one of the best places to live in the country. These factors not only draw new residents but also make the city desirable for investors looking to diversify their portfolios.
This guide will explore what makes Austin a top choice for out-of-state investors, challenges to be aware of, and advice to help you succeed each step of the way.
Why Should Out-of-State Investors Target Austin?
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Both people and companies have been flocking to Austin for years. From its popular tech sector to its endless entertainment options, Austin continues to entice renters looking for a high quality of life. Out-of-state investors should consider Austin for these reasons, and more:
Booming Tech Industry: With industry giants like Apple, Google, and IBM establishing major hubs in the city, Austin has become one of the country’s fastest-growing tech centers. Tech jobs account for 16% of all jobs in the area, creating a wave of professionals seeking housing near their workplaces.
Rapid Population Growth: The Austin metro area gains about 173 new residents per day, with the total population expected to be almost 3 million by 2030. Many new residents opt to rent before buying homes, creating a strong demand for housing.
Landlord-Friendly Policies: Texas laws make it easier for landlords to handle evictions, adjust rent based on market conditions, and maximize profits. Plus, there’s no state income tax to worry about.
Lifestyle Appeal: From live music venues and world-class festivals to outdoor activities at Lady Bird Lake and Barton Springs, Austin’s vibrant culture and recreational opportunities draw renters of all ages, ensuring consistent demand for housing.
Understanding what makes the Austin rental market unique and clearly defining your goals as an investor can help you make the right decisions for your needs.
Challenges to Watch For in the Austin Market
Of course, no market is perfect. If you’re an out-of-state investor in Austin, here are a few things to keep in mind:
Rising Home Prices: Austin’s home prices have been steadily rising over the past several years. Home sales in the metro are expected to increase by nearly 27% in 2025, placing Austin 16th on the list of the top 20 cities expected to see housing market growth year-over-year. This means you may face higher upfront costs to become an investor in the area, so make sure to plan your finances accordingly.
High Property Taxes: While there may not be state income tax, Austin’s property taxes can be steep. Rates typically hover around 1.4%-1.86% which is considerably higher than the national average. This number is only expected to climb. If you’re an investor, be sure to prepare for these extra expenses.
High Tenant Expectations: Austin renters are savvy and often expect modern finishes, updated appliances, and energy-efficient features. Budget for upgrades if needed, as it will pay off in the long run.
Remote Property Management: Managing a rental property from a distance can be a challenge, especially when you need to handle things like inspections, maintenance, or finding the right tenants. Finding a property manager you can trust, like Evernest, can help alleviate much of this stress.
Local Laws: States have different rules surrounding real estate investing, but so do cities and counties. You’ll need to have a clear understanding of your rights as a landlord, as well as the rights of your tenants. If you’re catering to tenants belonging to the Texas Section 8 Program, you’ll also want to be aware of the nuances of the program. Staying informed can help you avoid getting into legal trouble and losing income.
Investing in real estate naturally carries some amount of risk, whether you’re a local or an out-of-state investor. By working with local experts and maintaining an understanding of Austin’s rules and regulations, you can protect your investment and keep your tenants satisfied.
Suggested listening: Getting Started in Out-of-State Investing
Where to Invest in Austin
Out-of-state investors know that location is everything, but the ideal market depends on your personal goals and preferences. While you’ll still want to research where to invest, here are some recommendations for neighborhoods and suburbs to look into:
North Austin: Suburbs just north of Austin, like Round Rock, Pflugerville, and Cedar Park, offer affordability and strong rental demand. This is especially true among families. With great schools and plenty of community amenities like parks and trails, these areas are designed with long-term tenants in mind.
West Austin: West Austin offers a mix of upscale living, natural beauty, and small-town charm. This makes it an attractive option for investors wanting to target families and professionals seeking a slower-paced lifestyle without sacrificing amenities. Suburbs like
Bee Cave and Dripping Springs cater to high-income residents, giving investors the potential to secure premium rental rates.
Northwest Austin: Several major employers like Samsung and Dell sit in northwest Austin, making it perfect for investors who want to attract renters working in high-paying jobs. Containing both newer apartments and single-family homes, investors can enjoy a greater ROI potential in this area.
Your market of choice should align with your goals and buy box. If you would like to talk through potential markets with an expert, we can help.
Partnering with the Right Team in Austin
Location may be critical, but having the right team to help and guide you is just as important. Some of the people you’ll want to have on your team include:
Realtor: A local real estate agent with experience in the Austin market can help you sort through competitive listings, provide market-specific expertise, and secure off-market deals. You’ll want someone who has worked with out-of-state investors before, like one of the team members at Evernest. Partnering with us means gaining access to our investor-friendly brokerage services, whether you’re interested in buying or selling rental properties in Austin.
Property Manager: As an out-of-state investor, having a property management company is even more critical, as they can handle tasks requiring someone to be physically present. This includes everything from finding the right rental property to tenant placement, maintenance requests, and more.
A solid team can help eliminate much of the stress that comes with managing a rental property from afar.
Simplify Austin Out-of-State Investment with Evernest
Austin offers out-of-state real estate investors an unbeatable combination of high rental demand, a growing economy, and a unique lifestyle appeal that continues to draw people from across the country. To succeed in this market, having a trustworthy support system is essential.
At Evernest, we provide an all-in-one solution to help your Austin investment thrive. From identifying neighborhoods that match your goals to managing everyday operations, we handle it all. By taking the hassle out of out-of-state investing, we allow you to focus more on the passive income you’re generating and less on the challenges of property management.
