The Airbnb Factor: Why Investors Are Eyeing Central Austin Again

KHANI ZULU | MCNE, CLHMS  |  June 25, 2025

The Airbnb Factor: Why Investors Are Eyeing Central Austin Again

The Airbnb Factor: Why Investors Are Eyeing Central Austin Again

There’s something about summer in Austin—the rhythm of live music, the scent of BBQ wafting through the air, the steady stream of visitors here for everything from weddings to weekend getaways. And behind the scenes, savvy investors are capitalizing on it all.

While headlines may say the market has cooled, seasoned buyers know the truth: opportunity hasn’t disappeared—it’s simply shifted. And one of the most resilient niches right now? Short-term and mid-term rentals in Central Austin.

Why Austin Still Shines for STRs

Despite regulatory shifts and market chatter, Austin remains one of the most vibrant short-term rental cities in the country. Why?

  • Steady demand from tech travelers, creatives, families, and event-goers.

  • Walkable charm in neighborhoods like Bouldin, Hyde Park, Clarksville, East Austin, and UT-adjacent enclaves.

  • Cultural cachet that draws tourists and relocators year-round—not just for SXSW and ACL, but for our soul, our food, our music, and our nature.

Many of the best-performing rentals aren’t massive estates—they’re stylish, well-located homes or duplexes with great bones and great vibes. Think cozy porches, walkability, unique design details, and thoughtful touches that turn a stay into a story.

What Makes a Great Short-Term Rental?

As someone who’s helped dozens of clients maximize their rental ROI—and currently markets multiple active STRs—I can tell you: not all homes are created equal.

Here’s what gets booked (and rebooked):

  • Location, Location, Location – Proximity to downtown, major event venues, hospitals, and universities is key.

  • Design-Forward Aesthetic – Updated interiors, pops of color, local art, or a unique theme. Think: editorial meets hospitality.

  • Amenities Matter – Outdoor space (any outdoor water feature/ pool is a HUGE advantage, good lighting, multiple bathrooms, parking, keyless entry, strong Wi-Fi, and full kitchens.

  • Flexibility – Multi-unit homes (like my listing at 1303 Newfield, 78703) or those with flex rooms (like 3102 Hemphill, 78751) offer more options for mid-term stays and traveling professionals.

Why Now is the Moment to Buy

If you’ve been watching the market from the sidelines, this summer might just be your entry point.

Here’s why:

✅ Inventory is up – Buyers have more options and more leverage to negotiate.
✅ Prices are adjusting – With less bidding war pressure, it's easier to get a deal.
✅ Licensing timelines matter – Major updates to Austin's STR code take effect this fall. Buyers who act now can get ahead of the curve.
✅ Summer = peak booking season – Buy now and your investment could start earning immediately.

The combination of motivated sellers, higher inventory, and strong rental demand makes this a rare alignment of timing and opportunity.

Curious What You Could Earn?

Whether you already own a home you’re curious about converting—or you’re looking to purchase something that cash flows from day one—I can help. My team specializes in:

  • Evaluating STR potential

  • Navigating Austin’s evolving regulations

  • Curating upgrades that boost rental value

  • Connecting you with the right management teams

Let’s take a look at the numbers and craft a plan.

Thinking of buying a rental in Austin?

Let’s chat. I’ll run a custom revenue projection and help you understand what’s legal, what’s lucrative, and what’s next.

With Love from ATX,
Khani Zulu



Work With Our Team