Introduction
Austin, Texas, often referred to as the “Live Music Capital of the World,” is a vibrant and rapidly growing city that attracts visitors from around the globe.
With its booming tech industry, renowned festivals, and cultural attractions, it’s no wonder that the short-term rental market in Austin has experienced significant growth in recent years. In this blog post, we’ll delve into the key statistics and trends of the short-term rental market in Austin, providing valuable insights for both potential investors and travelers.
Market Overview
To understand the dynamics of the short-term rental market in Austin, let’s delve into some key statistics and figures.
Supply
The most popular homes are 3-bedroom homes, comprising 23.94% of inventory. This is followed by 1 and 2-bedroom homes at 22.96% and 19.22% of the total inventory, respectively.
Homes Appreciation
AS of July 2025, according to Zillow, homes in Austin experienced an depreciation of -4.02. This data indicates a significant decrease in property values.
Median Home Value
As of January of 2025, Homes in Austin have depreciated by -4.02%. The median home value in Austin is $513,622 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
AS of July 2025, Austin boasts a significant Airbnb rental market, with approximately 10,280 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $269.51. The Average Daily Rate is the highest for 5 bedroom homes ($519) followed by 4-bedrooms and 3 bedrooms at $460 and $386 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 56% for Airbnb rentals in Austin. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Austin ?
AS of July 2025, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 8.15% in Austin. This figure suggests that short-term rentals in the city offer a favorable return on investment. Austin is ranked #79 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Austin earn an average of $41,887 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Property Tax
According to SmartAsset, the average property tax in Austin is 1.77%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
