How is the Texas housing market holding up? Like every other year, the Texas rental market remains one of the best places for making money in real estate. Whether you prefer long-term traditional properties or Airbnb rentals, investing in Texas investment properties can be one of the best moves to make in real estate.
Related: Why Texas Real Estate Has Always Been Sexy for Investors
So, where are the best cities to invest in Texas real estate? The state’s four biggest cities, Austin, Dallas, Houston, and San Antonio are the best places to invest in the Texas housing market. This blog will include data on these cities and their two best neighborhoods for Airbnb and two best neighborhoods for traditional real estate. All data is provided by Mashvisor’s investment property calculator. To learn more about Mashvisor’s investment property calculator and other services, click here!
Texas Housing Market 2018: Austin
Median Property Price: $525,481
Traditional
Rental Income: $1,839
Cash on Cash Return / Cap Rate: 0.57%
Airbnb
Rental Income: $2,058
Cash on Cash Return / Cap Rate: 0.96%
Austin real estate is no stranger to having successful Texas investment properties. The city is profitable for both traditional and Airbnb properties in the Texas housing market. Airbnb is the obvious preferred rental strategy; the city is among the best cities to invest in real estate 2018 across the US. If you plan on making money in real estate in Texas, be sure to consider Austin.
Related: 4 Reasons to Buy Airbnb Investment Property in Austin
Best Neighborhoods in Austin Real Estate: Airbnb
- Bouldin
Median Property Price: $1,087,000
Rental Income: $4,145
Cash on Cash Return / Cap Rate: 0.44%
Occupancy Rate: 49%
- East Cesar Chavez
Median Property Price: $660,571
Rental Income: $3,899
Cash on Cash Return / Cap Rate: 2.09%
Occupancy Rate: 52%
Best Neighborhoods in Austin Real Estate: Traditional
- South River City
Median Property Price: $494,013
Rental Income: $3,334
Cash on Cash Return / Cap Rate: 3.42%
- West University
Median Property Price: $269,995
Rental Income: $1,450
Cash on Cash Return / Cap Rate: 0.56%
Texas Housing Market 2018: Dallas
Median Property Price: $469,817
Traditional
Rental Income: $1,956
Cash on Cash Return / Cap Rate: 0.37%
Airbnb
Rental Income: $1,883
Cash on Cash Return / Cap Rate: 0.09%
Like Austin, Dallas is a city ripe with rental income for both investment strategies. The main difference is that the average Texas real estate investment in Dallas is more profitable as a traditional investment. The Texas housing market in Dallas is currently a seller’s market, meaning that selling is easier and more profitable than buying, on average. Nonetheless, a real estate investor would be wise to buy a Texas real estate investment in Dallas for the high rental income.
Related: Is It a Buyer’s Market or a Seller’s Market?
Best Neighborhoods in Dallas Real Estate: Airbnb
- Farmers Market District
Median Property Price: $432,089
Rental Income: $2,940
Cash on Cash Return / Cap Rate: 1.8%
Occupancy Rate: 59%
- Oak Cliff
Median Property Price: $541,021
Rental Income: $2,727
Cash on Cash Return / Cap Rate: 0.99%
Occupancy Rate: 59%
Best Neighborhoods in Dallas Real Estate: Traditional
- City Center District
Median Property Price: $451,167
Rental Income: $2,185
Cash on Cash Return / Cap Rate: 0.07%
- Oak Cliff
Median Property Price: $541,021
Rental Income: $1,991
Cash on Cash Return / Cap Rate: 0.25%
Texas Housing Market 2018: Houston
Median Property Price: $421,159
Traditional
Rental Income: $1,819
Cash on Cash Return / Cap Rate: 1.34%
Airbnb
Rental Income: $1,990
Cash on Cash Return / Cap Rate: 1.41%
The average rental income in Houston real estate is similar to that of Dallas’ market. Even after Hurricane Harvey, the Texas housing market in Houston has remained strong due to a high recovery in the Greater Houston area. If you plan to invest in Texas real estate in Houston, you’ll be in for a lot of rental income.
Best Neighborhoods in Houston Real Estate: Airbnb
- Fourth Ward
Median Property Price: $507,568
Rental Income: $2,603
Cash on Cash Return / Cap Rate: 0.83%
Occupancy Rate: 52%
- Midtown
Median Property Price: $371,125
Rental Income: $2,304
Cash on Cash Return / Cap Rate: 0.59%
Occupancy Rate: 52%
Best Neighborhoods in Houston Real Estate: Traditional
- Downtown
Median Property Price: $412,457
Rental Income: $2,396
Cash on Cash Return / Cap Rate: 1.04%
- Astrodome Area
Median Property Price: $184,970
Rental Income: $1,287
Cash on Cash Return / Cap Rate: 2.04%
Texas Housing Market 2018: San Antonio
Median Property Price: $300,982
Traditional
Rental Income: $1,532
Cash on Cash Return / Cap Rate: 0.79%
Airbnb
Rental Income: $1,093
Cash on Cash Return / Cap Rate: 1.09%
Out of the four cities in this blog, San Antonio is the one with the most inexpensive property prices. The city is one of the hotspots of the Texas real estate market , particularly for traditional investment properties. While Airbnb is undergoing some new regulations in SA, it is still a viable rental option.
Best Neighborhoods in San Antonio Real Estate: Airbnb
- Nevada Streets
Median Property Price: $220,317
Rental Income: $2,412
Cash on Cash Return / Cap Rate: 5.01%
Occupancy Rate: 54%
- Historic Gardens
Median Property Price: $194,667
Rental Income: $2,009
Cash on Cash Return / Cap Rate: 5.36%
Occupancy Rate: 54%
Best Neighborhoods in San Antonio Real Estate: Traditional
- Dignowity Hill
Median Property Price: $263,696
Rental Income: $2,006
Cash on Cash Return / Cap Rate: 4.25%
- Lavaca
Median Property Price: $395,333
Rental Income: $2,459
Cash on Cash Return / Cap Rate: 2.03%
Conclusion
The Texas housing market is one of the most stable and profitable in the entire US. Both Airbnb and traditional investment strategies bring high profit in the best cities in The Lone Star State. Want to learn more about where to invest in real estate and the steps to buying a house in Texas? Click here to read Mashvisor’s blog! Want to start buying a house in Texas and use a comparative market analysis to find the best property? Click here to start your 7-day free trial with Mashvisor!