House Hacking Austin

By Robert Leonard •  Updated: 11/03/22 •  3 min read

Are you interested in house hacking Austin?

In this post, we’re going to give you all the information you need to do it. We’ll look at whether Austin is in a landlord or tenant-friendly state, the six demographic data points we use to analyze a market, and the house hacking strategies that might work well in this market.

Austin: Tenant Friendly, or Landlord Friendly?

From the state level, Texas is more on the landlord-friendly side of the scale than tenant-friendly.. You can see where Texas falls on the landlord versus tenant-friendly graph here.

Austin, the city itself, is a bit more tenant-friendly than other cities in Texas, but it’s not so much so that it turns me off. Austin is still in a generally landlord-friendly state.

When house hacking, given that you will have tenants, it is often worth considering whether your location is landlord or tenant-friendly. In this case, I personally think Texas as a whole, and Austin specifically, is not too tenant-friendly for me to want to invest.

Take some time to consider this for your own risk tolerance and determine if house hacking Austin is right for you.

Austin Demographic Data Analysis

The 6 demographic data points that we’ve learned to use when analyzing a market are population growth, income growth, property value growth, crime level, crime change, and job growth.

This was taught to us by Neal Bawa at Grocapitus and MultifamilyU.

When it comes to these six metrics, this is how Austin compares to our benchmarks:

Data PointBenchmark (since 2000)Austin
Population Growth20%49.1%
Income Growth30%76.6%
Property Value Growth40%213.2%
Crime Level< 500302.3
Crime Change0% or declining-30.4%
Job Growth1%5.50%

Overall, an Austin house hack looks quite good based on the 6 metrics above that we analyze. It has met, or exceeded, every single one of our benchmarks. The biggest limiting factor in Austin is not the demographic data, but rather the pricing (for most people). It can be hard to find a good deal (and affordable) in Austin.

Strategies for house hacking Austin

Austin offers different types of house hacking properties. These property types include single-family homes and multifamily properties. Also, Austin is a large city with many business and vacation travelers.

This means that you can utilize nearly any of the house hacking strategies. These strategies include rent-by-the-room when house hacking a single-family home, renting out additional units in a multifamily property, or even utilizing Airbnb.

The Airbnb strategy may be most successful as Austin is a popular vacation destination. The additional cash flow from Airbnb can help offset the higher purchase prices in Austin.

Check out this neat, obtainable property in Austin that could be used as an Airbnb:

Airbnb in Austin for house hacking

Overall, Austin is a great city. If you’re moving to the area, or you already live in the area and you’re just doing research, you now know house hacking Austin could be a great option.

If you’re interested in house hacking Austin, be sure to check out our free house hacking calculator to analyze all your potential deals. And, if you’re interested in learning more about house hacking, check out our book The Everything Guide to House Hacking.

Robert Leonard

I am the founder of Everything House Hacking, author of The Everything Guide to House Hacking, a real estate investor, and host of two top 1% business podcasts — Real Estate 101 and Millennial Investing.

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