What it’s really like to invest in Austin, TX

Austin, TX, has long been a bustling boomtown for music, tech, and, more recently, real estate, which exploded during the Covid pandemic. But as that boom fizzles, what’s it like to invest in this market now? Here’s some straight talk with Cynthia Mattiza at Kuper Sotheby’s, who has 16 years of experience and multiple rental properties under her belt.

Average home price: $494,727 (Down 6.1% YoY)
Homes that sell over list price: 9.9%
Homes that sell under list price: 75.7%
Average rent: $1,526

Lay of the land: “I saw the recession in 2010, the boom in 2020, then the drastic impact of the interest rates in 2023 to 2025,” Mattiza says. “As we gear into 2026, our market is significantly healthier than it has been in the past few years. We are seeing properties with multiple offers again, and shorter days on market. We’re also seeing investors purchasing again due to the drop in rates and Austin’s robust tech economy and proximity to major universities.”

Her advice: “South Austin continues to be reliable, particularly for young professionals seeking turnkey homes with proximity to Downtown,” Mattiza says, adding that she owns a rental near the South Manchaca area, which is rich with breweries, restaurants, and nightlife. “I purchased that property in 2017 for $235,000, and it’s now valued in the mid-$500,000s. Each time it’s listed for lease, we receive multiple applications due to the location alone.”

Once these revelers start families, they head to West Austin. “Many families ‘test’ an area before buying,” she says. “We also see grandparents renting in neighborhoods where their families already live, so I look at single-story floorplans.” Mattiza recently purchased a house in Bee Cave (just west of Austin) that was previously listed for $625,000 and was reduced to $589,900. She closed for $548,050, invested around $50,000 in renovations, and then listed it for rent for $4,000 per month.