Which East Austin sub-area has the highest home prices?

East 6th Core, the corridor running from I-35 east to approximately Chicon Street, commands the highest prices in East Austin, with renovated and new construction homes asking at the top of the 78702 range. This sub-area has the strongest STR income potential, highest walkability, and direct access to Half Step, Suerte, Launderette, and Nickel City. Holly (Lady Bird Lake access) is second for lakeside proximity, with its median asking price currently at $679K. Chestnut/MLK and Govalle/Johnson Terrace offer the most affordable entry points. Luke Allen helps buyers understand which sub-area aligns with their goals.

What STR income can I expect from an East Austin home?

East Austin is Austin's strongest Airbnb market. As an illustrative estimate, a well-managed 2-bedroom bungalow in East 6th core can generate $45,000 to $65,000 gross STR income annually, with 3-bedroom properties reaching $55,000 to $80,000. SXSW (March), ACL (October), and F1 (October) are peak weeks when nightly rates reach $300 to $600+. Baseline occupancy runs 60 to 70% across the year in 78702. A 1BR condo typically generates $28,000 to $40,000 gross annually. These figures are illustrative modeling estimates, not current quotes, and assume active management and professional listing photography. Net yield after expenses and management fees runs 65 to 75% of gross. Luke Allen helps STR investors model realistic income projections for specific 78702 properties.

What is the difference between Type 1 and Type 2 STR permits in East Austin?

Austin regulates STRs in two categories. Type 1 (owner-occupied) permits allow homeowners to rent their primary residence while they are away, these permits are generally available in East Austin with annual renewal through the City of Austin. Type 2 (non-owner-occupied) permits allow full investment property STR operation, these are more restricted, with supply constrained by a city cap on their issuance in residential areas. A property being sold with an active Type 2 STR permit commands a significant premium because the permit's supply is limited and the full investment yield is available immediately. Luke Allen evaluates STR permit status for every East Austin investment buyer and ensures sellers with Type 2 permits price their homes to capture the permit premium.

What is the difference in price between an original bungalow and new construction in East Austin?

East Austin has three distinct pricing tiers by construction type. An original-condition 1930s, 1950s bungalow on a standard lot (5,000 to 7,000 sqft) typically asks near the low end of the 78702 single-family range, often at or near land value for the lot. A renovated bungalow with modern kitchen, updated systems, and maintained character asks around the 78702 single-family median, which is $799K right now. New construction, spec townhomes, duplexes, or ground-up single-family, sits at the top, with a median new-construction asking price in 78702 of $899K right now, depending on finish level and location. The renovation economics can be compelling: for example, a $500K bungalow with $200K in renovations that reaches an $850K market value would create $150K in equity. Luke Allen evaluates all three scenarios for every East Austin buyer or seller.

How did East Austin prices perform from 2010 to 2026?

East Austin is the most dramatic appreciation story in Austin real estate. In 2010, East Austin bungalows sold for $150K to $200K; today the 78702 median asking price is $650K. By 2015 the median had reached $380K as restaurants and bars began national recognition. By 2018 it was $520K. The COVID-era migration wave pushed the median to a $950K peak in 2022, the most dramatic single-period appreciation of any Austin neighborhood at scale. The 2023 rate correction brought values down to approximately $720K, where they stabilized through 2024 and 2025. The outer sub-areas (Govalle, Windsor Park) are still appreciating, while East 6th core has plateaued at the top of the 78702 range.

How does East Austin compare to Mueller, Travis Heights, and Bouldin Creek?

East Austin (78702, STR leader, Walk Score 82, no neighborhood HOA, median asking price currently $650K) has historically traded above Mueller (78723, green-built, HOA, master-planned) and below Bouldin Creek (78704, South Austin character) and Travis Heights (South Austin prestige). The key East Austin differentiator is STR income potential, no other comparable Austin neighborhood approaches 78702's Airbnb income floor. East Austin also offers active new construction opportunity that built-out Mueller does not. Luke Allen provides full four-way neighborhood comparison for buyers weighing these options.

Is East Austin in a flood zone?

Parts of East Austin, particularly the Holly neighborhood adjacent to Lady Bird Lake, include FEMA-designated flood zones. The 100-year floodplain runs along Waller Creek and near the lake shoreline. Properties within the floodplain require mandatory flood insurance for federally-backed mortgages, adding $1,500 to $4,000+/year in carrying cost depending on elevation certificate and coverage amount. Properties outside the floodplain are not affected. Luke Allen identifies flood zone status for every East Austin property under consideration and models flood insurance cost into affordability calculations.

East Austin Market Report

Sub-Area Price Gradient

Five Sub-Areas,
Five Different Markets

East Austin is not one uniform market. The 78702 zip code contains five distinct sub-areas with meaningfully different price levels, buyer profiles, and STR characteristics. Where your home sits within East Austin is the single most important variable in how it should be priced and marketed.

Sub-Area	Median Asking Price	Active Listings	STR Potential	Character
East 6th Core	Top of 78702, up to $1.32M	186 zip-wide	Highest	Bars, restaurants, new construction, highest density
Holly (Lady Bird Lake)	$679K	26	High	Lake access, hike/bike trail, transitioning blocks
Chestnut / MLK	$750K	21	Moderate to high	Residential, Manor Road corridor, established bungalows
Govalle / Johnson Terrace	$725K	55	Moderate	Affordable entry, active appreciation, still gentrifying
Windsor Park (Mueller-adjacent)	$465K	45	Moderate	Quiet residential, spillover from Mueller demand

The sub-area gradient is the most misunderstood aspect of East Austin pricing. Automated valuation models aggregate the zip code into a single figure (the 78702 median asking price is $650K right now) that describes the average but masks a wide spread between the top and bottom sub-areas. A buyer targeting the East 6th core is in a fundamentally different market than a buyer in Govalle. Luke Allen prices and markets each East Austin property to its specific sub-area buyer pool. See available properties at east-austin-homes-for-sale.

STR Yield Analysis

East Austin's STR Market
Austin's Strongest Airbnb Zip Code

78702 is Austin's top-performing STR zip code by gross income per unit. SXSW in March, ACL and F1 in October, three major annual events that fill Austin's hotels and push nightly rates to multiples of baseline. East Austin captures the overflow because it is walkable from entertainment venues, has the bar and restaurant scene visitors want, and offers the authentic Austin experience that suburban hotels cannot replicate.

Illustrative STR model: the income, yield, nightly rate, and occupancy figures in these cards are underwriting assumptions for comparison, not current quotes or live market data.

Property Type 1

1-Bedroom Condo

$28K to $42K/yr

Assumed purchase price: $430K to $550K

Gross STR yield: 6 to 8% of purchase price

SXSW nightly rate: $250 to $400/night

ACL/F1 nightly rate: $225 to $375/night

Baseline nightly rate: $110 to $160/night

Occupancy assumption: 65% baseline, 90%+ event weeks

Best suited for individual investors. Type 1 STR permit available. Management fees (20 to 25%) reduce net to $21K to $32K.

Property Type 2

2-Bedroom Bungalow

$45K to $65K/yr

Assumed purchase price: $650K to $850K

Gross STR yield: 6 to 8% of purchase price

SXSW nightly rate: $325 to $550/night

ACL/F1 nightly rate: $300 to $500/night

Baseline nightly rate: $145 to $210/night

Occupancy assumption: 68% baseline, 92%+ event weeks

The sweet spot for STR investors. Entire-home rental, no shared walls, outdoor space. Type 2 permit preferred but Type 1 works for owner-occupants.

Property Type 3

3-Bedroom House

$55K to $80K/yr

Assumed purchase price: $800K to $1.1M

Gross STR yield: 6 to 8% of purchase price

SXSW nightly rate: $450 to $750/night

ACL/F1 nightly rate: $400 to $700/night

Baseline nightly rate: $185 to $275/night

Occupancy assumption: 65% baseline, 90%+ event weeks

Highest absolute income. Group bookings during events. Requires active management. Net after fees: $41K to $60K.

These income projections assume professional listing photography, optimized pricing software (PriceLabs or similar), active calendar management, and competitive response to events. Raw income without optimization runs 15 to 25% lower. Luke Allen helps East Austin STR buyers model realistic income projections and evaluate Type 1 vs. Type 2 permit scenarios before purchase. For investment strategy guidance, see the investment properties page.

Event Season Rate Premium (Modeling Assumptions)

Event	Timing	Duration	Rate Premium vs. Baseline	Occupancy
SXSW	March	10 days	2.5x, 3.5x baseline	95%+
ACL Festival	Early October	Two weekends	2x, 3x baseline	93%+
Formula 1 USGP	Late October	4 to 5 days	2x, 3x baseline	92%+
UT Football Weekends	Sept, Nov	7 to 8 weekends	1.3x, 1.6x baseline	82%+
Baseline	All other dates	~310 days/yr	1x	60 to 70%

Price History

East Austin 2010 to 2026:
The Full Story

No Austin neighborhood has a more dramatic 16-year appreciation story than East Austin. A $150K bungalow in 2010 now sits in a 78702 market where the median asking price is $650K. Understanding the drivers of each phase helps buyers and sellers interpret the current market correctly.

2010

$175K

2012

$250K

2015

$380K

2017

$460K

2018

$520K

2020

$600K

2021

$760K

2022

$950K

2023

$720K

2024

$715K

2025

$720K

Now (asking)

$650K

Phase 1 (2010 to 2015): Artist and bar discovery. East Austin's first wave of gentrification was driven by artists and bar operators attracted by rents that were a fraction of West Austin. East 6th Street began its transformation during this period. Prices nearly doubled from $175K to $380K as the neighborhood gained national attention.

Phase 2 (2015 to 2020): Restaurant and media recognition. Suerte, Launderette, and Franklin Barbecue (James Beard 2015) drove national press coverage that landed East Austin on "best neighborhoods in America" lists. The restaurant cluster attracted a wealthier buyer who had seen the neighborhood in food media. Prices climbed from $380K to $600K over this period.

Phase 3 (2020 to 2022): COVID-era migration peak. Remote work drove an extraordinary influx of out-of-state buyers who had discovered East Austin through national coverage. Combined with historically low mortgage rates, prices surged from $600K to a $950K median peak, the most dramatic 24-month appreciation in East Austin history.

Phase 4 (2023 onward): Correction and stabilization. Rate normalization in 2023 brought the median down to $720K, a 24% correction from peak. The correction was sharpest in new construction, which had been most aggressively priced. The market stabilized at roughly $715K to $720K through 2024 and 2025, with outer sub-areas like Govalle still seeing modest appreciation as their gentrification curve continues. For a broader market context, see the East Austin market report and the Austin market overview.

The Gentrification Curve

Where Each Sub-Area Sits
on the Curve

East Austin's transformation is not uniform, different sub-areas are at different stages of the gentrification cycle. Understanding where each block sits on the curve is the most important framework for East Austin investment analysis. What East 6th core looked like in 2010 is roughly what Govalle/Johnson Terrace looks like today.

Stage 4, Plateaued

East 6th Core

Fully transformed. Nationally recognized bar and restaurant scene. New construction sits at the top of the 78702 range. Price appreciation has moderated. Buyer pool is sophisticated. Entry-level investors have been priced out. Still strong STR income but cap rates have compressed.

Stage 3, Maturing

Holly / Chestnut

Well along the transformation curve. Lady Bird Lake access in Holly driving premium pricing. Chestnut stable residential character. Mixed original bungalows and renovated properties. Some remaining upside but the easy appreciation has occurred.

Stage 2, Active

Windsor Park

Active transition. Mueller spillover demand is driving renovation investment and new construction. Original bungalows and new builds coexist. Still below the East 6th price ceiling with room to run as the sub-area matures. Near-term appreciation outlook positive.

Stage 1, Early

Govalle / Johnson Terrace

Earliest stage in East Austin's outer ring. Affordable entry by East Austin standards, with a median asking price currently at $725K. Still primarily original bungalows with scattered renovation and new construction. Appreciation here has outpaced the more mature sub-areas in recent years. Highest remaining runway but also highest tolerance for uncertainty required.

The gentrification curve analysis is how Luke Allen helps East Austin buyers understand trade-offs between paying current market price in a mature sub-area vs. buying early in an appreciating sub-area with more uncertainty. Neither is categorically right, it depends on the buyer's risk tolerance, timeline, and goals.

Bungalow vs. New Construction

The Price Gap Between
Original, Renovated & New

East Austin has three distinct property categories that trade at meaningfully different price points and attract meaningfully different buyers. Understanding the renovation economics, and the teardown/redevelopment alternative, is essential for any serious East Austin buyer or seller.

Category	Typical Asking Price (Live)	Buyer Type	Modeled STR Income (Est.)	Notes
Original Condition Bungalow	Near $445K	Renovation buyers, developers, patient investors	$32K to $45K/yr	At or near land value. Kitchen/bath original. Systems may need replacement. Inspection critical.
Renovated Bungalow	Around $799K	Owner-occupants, STR investors, creative buyers	$45K to $65K/yr	Updated kitchen and baths. Modern systems. Character preserved. Best of both worlds.
New Construction (Spec/Townhome)	Median $899K	Buyers who want new, luxury STR operators	$55K to $80K/yr	Modern finishes, energy efficient, no deferred maintenance. HOA may apply. Highest price, highest income ceiling.
Duplex / Income Property	Median $799K	Investors, house hackers	$60K to $95K/yr	Two units. One owner-occupied (Type 1 STR), one rental. The most financially efficient East Austin structure for investor-occupants.

The renovation math: A typical East Austin bungalow renovation, kitchen replacement ($45K to $65K), master bath ($20K to $35K), secondary bath ($15K to $25K), HVAC replacement ($12K to $18K), electrical panel ($8K to $15K), landscaping ($10K to $20K), totals approximately $110K to $178K in major work. For example, a $530K bungalow with $150K in renovation that reaches a $750K to $850K market value would represent $70K to $170K in equity creation above cost. The calculus depends on finding the right bungalow at the right price with a clear scope. Luke Allen specializes in identifying East Austin bungalows with renovation upside and connecting buyers to vetted local contractors who understand the neighborhood's specific construction context.

STR Permitting

Type 1 vs. Type 2 STR
How Permits Affect Pricing

Austin's STR permit structure has a direct and measurable effect on East Austin property values, specifically for investment buyers. Understanding the two permit types is essential for anyone buying or selling an East Austin property with STR income potential.

Type 1 STR (Owner-Occupied): Available to homeowners who use the property as their primary residence. You can rent your home (or part of it) when you are not present. Type 1 permits are available in East Austin with annual renewal through the City of Austin. A Type 1 property generates strong STR income during SXSW, ACL, and F1, the periods when the owner can plan to travel and the property earns 2.5x, 3.5x nightly baseline. For owner-occupants who want to offset their mortgage with event-week income, Type 1 is the path. A well-managed Type 1 property can earn meaningful event-week income while the owner occupies it the rest of the year.

Type 2 STR (Non-Owner-Occupied): Allows full investment property STR operation without owner presence. The City of Austin has capped Type 2 permits in residential areas, making existing Type 2 permits supply-constrained. A property sold with an active Type 2 STR permit commands a premium, the market value of unrestricted full-time STR operation in Austin's top STR zip code. Buyers who specifically need a Type 2 permit to execute their investment model will pay above comparable sales for a permitted property. Luke Allen tracks Type 2 permit status for every East Austin property and ensures sellers price their homes to capture the permit premium when applicable.

The practical effect: an East Austin property with an active Type 2 STR permit and a proven income record may justify a purchase price meaningfully above what comparable sales alone would support, because the permit and the income documentation de-risk the investment thesis. Luke Allen helps buyers evaluate this premium and helps sellers quantify and capture it at listing.

East Austin Realtor East Austin Homes for Sale Sell Your East Austin Home Investment Properties Austin Best Realtor 78702

Neighborhood Comparison

East Austin vs. Mueller, Travis Heights
& Bouldin Creek

East Austin occupies a unique position in Austin's inner-loop neighborhood hierarchy. Here is how 78702 compares to the three most frequent alternatives buyers consider.

Factor	East Austin	Mueller	Travis Heights	Bouldin Creek
Median Asking Price (Live)	$650K	$482K	$699K	$925K
Walk Score	82	78	72	80
STR Income Potential	Highest	Moderate	High	High
Neighborhood HOA	None	Yes ($100 to $150/mo)	None	None
Bar/Restaurant Scene	Best in Austin	Aldrich Street	South Congress nearby	South Congress nearby
New Construction Activity	Active / Ongoing	Built out	Limited	Limited
Architecture	Bungalows + New Spec	Green-built planned	Historic Craftsman	Vintage mixed
Bike Commute to Downtown	15 to 18 min	20 to 25 min	12 to 15 min	10 to 14 min
Price History Trajectory	Steepest run since 2010	Strong since 2015	Steady since 2012	Steady since 2012

East Austin's STR income potential is the differentiator no other comparable neighborhood can match at this price point. Mueller is a compelling alternative for green-building buyers who want a master-planned environment, but it has historically traded below East Austin for a reason, it lacks East Austin's bar and restaurant scene, its STR income, and its ongoing new construction opportunity. Travis Heights and Bouldin Creek offer South Austin character, typically at a premium; compare the live medians above. Luke Allen helps buyers make this comparison with current data. See the Mueller realtor page for Mueller-specific guidance.

Frequently Asked Questions

East Austin Market
FAQ

What is the median home price in East Austin?

The median asking price for active listings in East Austin (78702) is $650K right now, and most active listings are asking between $315K for entry-level condos and smaller bungalows and $1.32M for premium new construction in East 6th core. For comparison, Mueller's median asking price is currently $482K and Hyde Park's is $400K. East Austin's pricing reflects its unique STR income potential, nationally recognized bar and restaurant scene, and continued new construction. Luke Allen tracks current East Austin pricing continuously and can provide a current market analysis for any specific address.

Which East Austin sub-area is the best investment in 2026?

It depends on your investment thesis. Govalle/Johnson Terrace offers the strongest remaining appreciation runway at one of the lowest entry prices in 78702, with active gentrification. East 6th Core offers the highest STR income with the most compressed cap rates. Holly is the best option for buyers who want lakeside lifestyle proximity with strong STR income. Windsor Park offers Mueller-adjacent stability with modest appreciation. Luke Allen evaluates the right sub-area for each buyer's specific timeline, risk tolerance, and income goals.

How did the 2022 peak and 2023 correction affect East Austin?

East Austin peaked at approximately $950K median in 2022 and corrected to $720K in 2023, a decline of roughly 24% from peak. The correction was sharpest in new construction, which had been most aggressively priced at $1.1M to $1.4M during the peak. The resale bungalow segment held better, correcting approximately 18 to 20%. East Austin stabilized at roughly $715K to $720K through 2024 and 2025. The correction was painful for 2021 to 2022 buyers but restored affordability for a new wave of buyers who had been priced out during the run-up.

Is East Austin a good place to buy for STR income?

East Austin is Austin's strongest STR market and one of the strongest in Texas. The combination of SXSW, ACL, and F1, three nationally significant annual events, creates predictable high-occupancy periods that allow East Austin STR operators to earn strong gross yields. As an illustrative estimate, a well-managed 2-bedroom bungalow in East 6th core can gross $45,000 to $65,000/year. The key considerations are permit type (Type 1 vs. Type 2), location within 78702, and management quality. Luke Allen helps STR buyers model realistic income before purchase.

What does a Type 2 STR permit add to an East Austin property's value?

An active Type 2 STR permit (non-owner-occupied) can add real value to an East Austin property when sold to an investment buyer. The permit allows full-time STR operation without owner presence, and because the City of Austin has capped Type 2 permit supply in residential areas, existing permits are a scarce asset. A buyer who needs Type 2 to execute a pure investment STR model will pay a meaningful premium above comparable sales for a property that comes with an active permit and proven income records.

How does East Austin compare to Mueller for a first-time buyer?

Mueller's median asking price is currently $482K, compared with $650K in 78702, and it offers a master-planned community with HOA infrastructure, 30-acre lake park, and green-built homes. East Austin offers no neighborhood HOA, the best bar and restaurant scene in Austin, higher STR income potential, and an active new construction market. For a first-time buyer who prioritizes community infrastructure and lower entry price, Mueller may be compelling. For a buyer who wants to live in Austin's most vibrant cultural neighborhood with income potential, East Austin wins. Luke Allen provides a detailed comparison for any buyer weighing both options.

Are there HOAs in East Austin?

There is no neighborhood-wide HOA in East Austin, a significant distinction from Mueller, which carries a $100 to $150/month community HOA. Individual condominiums and some townhome developments have their own building-level HOAs, which should be reviewed carefully for reserve fund adequacy and restriction on STR activity. Many East Austin condo HOAs explicitly prohibit STR operation, a critical consideration for buyers purchasing for investment. Luke Allen reviews HOA documents for every East Austin purchase and flags STR restrictions before a buyer makes an offer.

What should I look for when evaluating an East Austin bungalow for renovation?

The key variables for an East Austin bungalow renovation analysis are: (1) Lot size and zoning, some lots allow ADU addition, which substantially changes the investment economics; (2) Foundation type and condition, pier and beam foundations in 1930s, 1950s bungalows can be excellent or can have costly issues; (3) Original electrical and plumbing, knob-and-tube wiring and galvanized plumbing are common and expensive to replace; (4) HVAC, original-condition homes often have no ductwork and require new system design; (5) Flood zone status; (6) Sub-area location, same scope of renovation generates different returns depending on which East Austin sub-area the home is in. Luke Allen helps buyers build a realistic renovation budget before making an offer.

East Austin
Market Report

Five Sub-Areas,
Five Different Markets

East Austin's STR Market
Austin's Strongest Airbnb Zip Code

1-Bedroom Condo

2-Bedroom Bungalow

3-Bedroom House

Event Season Rate Premium (Modeling Assumptions)

East Austin 2010 to 2026:
The Full Story

Where Each Sub-Area Sits
on the Curve

East 6th Core

Holly / Chestnut

Windsor Park

Govalle / Johnson Terrace

The Price Gap Between
Original, Renovated & New

Type 1 vs. Type 2 STR
How Permits Affect Pricing

East Austin vs. Mueller, Travis Heights
& Bouldin Creek

East Austin Market
FAQ

Get Your East Austin
Market Analysis

East Austin market right now

East AustinMarket Report

Five Sub-Areas,Five Different Markets

East Austin's STR MarketAustin's Strongest Airbnb Zip Code

1-Bedroom Condo

2-Bedroom Bungalow

3-Bedroom House

Event Season Rate Premium (Modeling Assumptions)

East Austin 2010 to 2026:The Full Story

Where Each Sub-Area Sitson the Curve

East 6th Core

Holly / Chestnut

Windsor Park

Govalle / Johnson Terrace

The Price Gap BetweenOriginal, Renovated & New

Type 1 vs. Type 2 STRHow Permits Affect Pricing

East Austin vs. Mueller, Travis Heights& Bouldin Creek

East Austin MarketFAQ

Get Your East AustinMarket Analysis

East Austin market right now

East Austin
Market Report

Five Sub-Areas,
Five Different Markets

East Austin's STR Market
Austin's Strongest Airbnb Zip Code

East Austin 2010 to 2026:
The Full Story

Where Each Sub-Area Sits
on the Curve

The Price Gap Between
Original, Renovated & New

Type 1 vs. Type 2 STR
How Permits Affect Pricing

East Austin vs. Mueller, Travis Heights
& Bouldin Creek

East Austin Market
FAQ

Get Your East Austin
Market Analysis