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Auernheimer was the son of German businessman Johann Wilhelm Auernheimer and his Hungarian wife Charlotte "Jenny" Büchler. After receiving his Abitur, Auernheimer began to study law at the university in his hometown. He concluded his studied with a doctorate in 1900 and became a court assesor in a Viennese court.
At age 30, he married Irene Leopoldine Guttmann of Budapest. Through his uncle Theodor Herzl he gained employment at the Neuen Freien Presse. He wrote articles about the theater until 1933. In addition to his own name, he also used the pseudonyms Raoul Heimern and Raoul Othmar.
In 1923 he became the a manager of the Austrian PEN association. He was president until 1927 and remained vice-president. In March 1938, he was arrested and interned in the Dachau concentration camp. Because of a request by writer Emil Ludwig, the general counsel of the United States Raymund Geist intervened against his arrest. At the end of 1938 he was released and emigrated to New York City.
- Aus unserer verlorenen Zeit. - Vienna: Molden, 2004. - ISBN 3-85485-106-5
- Franz Grillparzer : der Dichter Österreichs. - Vienna: Amalthea-Verl., 1972
- Josef-Kainz-Gedenkbuch. - Vienna: Frisch, 1924
- Metternich : Staatsmann und Kavalier. - Munich: Heyne, 1978. - ISBN 3-453-55033-1
- Die rechte und die linke Hand. - Graz : Styria Verl., 1999. - ISBN 3-222-11635-0
- Das Wirtshaus zur verlorenen Zeit. - Vienna: Ullstein, 1948