Real Estate Investing in Austin, Texas (78748)
Should you buy in 78748 (Austin, TX)? Our answer, based on the numbers below.
Mixed — values have been flat. OK for long-horizon buyers, less attractive if you may need to sell soon.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- Flat appreciation: Values have barely moved over 5 years (0.4% CAGR).
- High price-to-rent: Price-to-rent ratio 25.2 — hard to cash-flow at these prices.
What’s happening in Austin, TX (78748)?
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Market Analysis: 78748 Austin
Investors eyeing 78748 need to respect the fundamentals at play. Home values of $413K come alongside slower price movement and elevated management overhead.
The 78748 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Nearby ZIPs in Austin have seen price recovery that 78748 has not matched. Travis County data supports the view that the spread is structural rather than temporary.
A sturdy renter share of 44% in 78748 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Strategically, 78748 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Austin:
Property Strategy for 78748
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $314,171 | $2,050 | 4.7% | +3.2% | $157,086 |
| 3BR | $394,261 | $2,600 | 4.7% | +4.0% | $131,420 |
| 4BR | $471,208 | $3,060 | 4.7% | +5.0% | $117,802 |
| 5BR | $575,275 | — | — | +5.1% | $115,055 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 78748 Compare?
| Metric | 78748 | Austin | Austin-Round Rock-Georgetown, TX | Texas |
|---|---|---|---|---|
| Home Value | $412,878 | $566,335 | N/A | $297,000 |
| 5-Year CAGR | 0.4% | 1.1% | N/A | 5.4% |
| Avg Rent | $1,367 | $1,813 | N/A | - |
| Cap Rate | 2.6% | 2.6% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 78748 (Austin, TX). Anonymous, moderated, never written by AI.
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Property managers serving Travis County
Manage rentals here? List your business →512-Society Property Management provides single-family and multi-family property management services across North Austin and Round Rock since 2005. summary from their website
Darwin Homes offers tech-driven property management services, making renting easy with 24/7 support, smart locks for viewings, and assistance with moving and utility setup. summary from their website
Guest Haus Property Management offers Airbnb and vacation rental management services in Austin. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $412,878 |
| Monthly Rent | $1,367 |
| Price-to-Rent | 25.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.0% |
| Cap Rate | 2.6% |
| 5-Year IRR | 2.9% |
📈 Home Appreciation
| 1-Year | -2.7% ▼ |
| 3-Year CAGR | -4.3% ▼ |
| 5-Year CAGR | +0.4% ▲ |
| 10-Year CAGR | +4.3% ▲ |
🏠 Rent Trends
| 1-Year | -7.0% ▼ |
| 3-Year CAGR | -4.8% ▼ |
| 5-Year CAGR | +0.7% ▲ |
The current 30-yr mortgage rate (6.5%) exceeds the estimated cap rate (2.6%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 78748
Population: 54,942
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 78748
Schools in This ZIP Code
Nearby Schools (1 more)
Schools in adjacent ZIP codes that may serve this area
MENCHACA EL
About Repit School Scores
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We evaluate schools based on factors that research shows actually impact educational outcomes:
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- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
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🎓 Nearby Colleges & Universities
Frequently Asked Questions
How much should I expect to pay for a home in Austin, TX?
Austin, TX home values average about $413K. That price point suits investors targeting rentals with $1,367/mo in monthly income.
How much rent can I charge in Austin, TX?
Average rent in Austin, TX is approximately $1,367/mo per month. Against $413K home values that yields a reasonable rent-to-price ratio.
What is the renter demographic in Austin, TX?
Tenant demand in Austin, TX is solid. The local workforce $1,367/mo rents across most rental classes.
Is Austin, TX a friendly market for rental owners?
Rental owners in Austin, TX deal with a landlord-friendly legal framework. Most standard eviction processes run on reasonable timelines.
Is Austin, TX good for house hacking?
Austin, TX is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $413K price point reasonable to enter.
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