Austin may be a good option for real estate investors, due to its relatively underrecognized tech employment hub, and its growing population. Its neighboring suburbs may have significant potential for good returns as well, both in traditional real estate and foreclosures, but at more affordable rates.
Austin is one of the largest and fastest-growing cities in Texas. Dubbed “Silicon Hills” in the 1990s, some of the biggest companies today have either expanded to Austin or shifted base here from the Bay Area, as conditions are more conducive for business. AMD, VRBO, and Dell are just some of the several celebrated enterprises with their global headquarters in Austin.
Find Austin Foreclosures on Auction.com
While this city offers several investment opportunities in traditional real estate, you may find that there is plenty of scope for great returns from investing in Austin’s foreclosure properties. The right investment strategy can help you reach your financial goals in a shorter timespan than traditional real estate sales and with a more transparent process.
Some homebuyers may find that settling down in a busy city like Austin may not be for them. As an investor, you can hope to attract such buyers by investing in properties in cities and towns near Austin that have lower costs of living, smaller populations, lower crime rates, and community-driven suburban neighborhoods. Let’s talk about some of those cities.
Cities Near Austin Primed for Investment
Round Rock
Located only 19 miles north of Austin, Round Rock appeared in the Milken Institute’s Best-Performing Cities rankings in 2021 and 2022 as one of the nation’s top cities in terms of employment and wage growth. The city has been seeing homebuyers flock here since it has one of the lowest property tax rates in the state of Texas. From an investor-friendly standpoint, as per Redfin’s August 2024 data, houses in Round Rock spent 14% less time on the market than last year.
Georgetown
Georgetown, 33 minutes away from Austin, featured among the top 10 fastest growing cities in the country between July 2020 and July 2023. This indicates that investors may find a fast-growing pool of potential tenants or buyers for their investment property. The Georgetown Independent School District consists of several prestigious institutions and is also the largest employer in the city with no shortage of talented teachers and administrators. Zillow’s July 2024 data bodes well for investors as it showed that about 11% of homes were sold above list price.
Bastrop
Businesses have been flocking to Bastrop lured by its built-in workforce, convenient location near the Austin-Bergstrom International Airport, and streamlined access to tax incentives and grants. The social media giant, X (formerly Twitter), is reportedly in talks to move its base of operations to Bastrop from halfway across the country. Real estate investment in a suburb that is well on its way to becoming a massive employment generator is certainly a no-brainer.
Rogers
Investors interested in Rogers could benefit from upcoming infrastructure upgrades that may have a positive impact on real estate here, making the city more appealing to buyers and renters. Plans are underway for solar photovoltaic energy farms and improvements to highways that will boost connectivity between the city’s business centers and residential quarters. Rogers manages to balance economic progress with its small-town charm and neighborly values.
Kyle
The city of Kyle is situated along the I-35 corridor, between two of the top economic engines of the Lone Star state, Austin and San Antonio. Thanks to its strategic location and investment from commercial developers and businesses like Amazon, Lowes, and FedEX, Kyle has been able to harness the benefits of rapid growth over the last two decades. It has transformed from a bedroom economy and with more global enterprises cropping up, has seen considerable population migration as well.
Pflugerville
A major development project on an 81-acre tract along the SH 45 and SH 130 corridors is set to revitalize the Pflugerville suburbs that offer a lower cost of living than the neighboring Austin. The project is set to create a mixed-use district consisting of townhomes, commercial zones, and integrated greenbelt improvements. There is no time like now to be a real estate investor in Pflugerville (just 26 minutes away from Austin) and attract buyers looking for an up-and-coming area to establish base.
Canyon Lake
Redfin reported in August 2024 that Canyon Lake witnessed a 38.5% spike in home prices Year-over-Year (YoY), making the real estate landscape ideal for investors. You can find your next big investment property in sought-after neighborhoods like Hill Country that have lakefront Mediterranean-style homes with plenty of natural beauty and scope for outdoor activities – certainly appealing prospects for potential buyers.
The appeal of Austin oscillates between its effervescent cultural landscape and its ever-growing reputation of being a tech and business incubator. These and several more factors make not just Austin, but also its neighboring suburbs great for turning a profit on real estate investment. Those on the lookout for more nuanced investment vehicles that allow for faster transactions and greater transparency may explore foreclosures and bank-owned properties in these cities.
