Real Estate
August 20, 2024
Austin, Texas has become one of the hottest real estate markets in the country. With its vibrant culture, booming job market, and beautiful natural surroundings, it's no wonder that people are flocking to the Texas state capital.
We wrote this guide to provide solutions for 5 different groups of people who are moving to Austin:
But with so many neighborhoods in Austin to choose from, how do you know which is the best neighborhood for you?
To get the inside scoop on Austin's best neighborhoods, we spoke with Mason Bleasdell, who knows Austin well -- he's in the top .5% of real estate agents by transactions. He has experienced the ups and downs of the local real estate scene, including the challenges of selling during the COVID-19 pandemic.
To determine affordability, we pulled property tax data from a sample of homes in each neighborhood. We then compared these 'nominal' property tax rates to Census Bureau data on actual property taxes paid per capita by each city.
Note: Many online 'Texas property tax' lists are too low. While they capture municipal, county, and school district taxes, they leave out niche taxing entities like hospitals, community colleges, or municipal utility districts
We combined this data with Zillow home value estimates to provide rough comparisons on price and affordability between each neighborhood.
Austin is a diverse, thriving city that attracts a variety of buyers. We’ll introduce you to the best places for buyers in each category, so you can move into the right Austin neighborhood for you.
When it comes to finding the best neighborhood for families, we looked at several key factors:
Here are our recommendations:
25 minutes north of downtown Austin, Round Rock balances city access with great schools. It also has lots of outdoor activities. "They've got more parks than most of the suburbs around Austin… the Brushy Creek regional trail system runs right through Round Rock."
Round Rock’s also popular with families because it's affordable, in more ways than one. "Round Rock also has really low taxes," Mason explains - the effective property tax rate for all homes hovers around 1.4%. Additionally, the median home price in Round Rock of $446,025 is 18% lower than Austin proper.
Round Rock Highlights
Actual property tax rate: 1.754%
Average Home Value: $446,025
Leander is arguably Austin’s fastest growing suburb. Built along a railroad line coming out of Austin, the population has increased tenfold from 7,600 in 2000 to nearly 74,000 today.
Developers have shown a lot of interest due to Leander’s growth, creating master planned communities like Crystal Falls with lots of new construction inventory for parents looking to move. "I've got a family of eight actually moving into Crystal Falls from that area right now," Mason shares.
Leander Highlights
Actual Property Tax Rate: 2.019027%
Average Home Value: $465,359
Just south of Leander is Cedar Park - a much larger community that falls inside the same great school district as Leander. Cedar park is only a 20-minute drive from downtown Austin. It also boasts several large employers in the oil and gas industry, and Apple’s HQ is a 8-minute drive away.
A local resident and mother of three stated: “I love all the outdoor things there are to do here, and there are so many community activities geared towards kids.”
Cedar Park Highlights
Actual Property Tax Rate: 1.971745%
Average Home Value: $502,235
“Keep Austin weird” is a mantra that defines the city’s reputation as a hub for creatives and those pursuing things slightly off the beaten path. We focused on areas that are affordable for single-income salaries. We also weighted nightlife and activities highly in our review.
South Austin stood out from the pack for its mix of contemporary and “old West Austin” flavors, competitive median home price and laid-back atmosphere.
"South Austin is a really popular neighborhood for my clients because of easy access downtown to a lot of the big employers here," Mason explains. "But it's also got that Austin vibe that everybody loves... It's got the local restaurants, bars, coffee shops, and live music."
South Austin gives you access to downtown without the price tag. single family homes average $471,188. If your budget is slightly lower, mason notes: "you can get condo townhomes right around that $300,000 price range." Travis Heights, a neighborhood ten minutes closer to downtown, lists at nearly double, that price.
Outdoorsy singles head to Barton Hills for hiking and biking at Barton Creek Greenbelt. South Lamar (SoLa) has the best nightlife scene in south Austin. Most area residents can get to UT Austin in 15 minutes or less by car.
South Austin Highlights
We focused on neighborhoods friendly to those in finance, banking, and consulting due to Austin’s dual-natured identity as a hub for technology companies and the heart of Texas politics.
All of the following neighborhoods are within a 20 minute drive of Austin’s Bergstrom International airport. The airport is well-served by Southwest, and American Airlines, as well as Delta.
Downtown Austin is the heart of Austin’s political and legal industry, it also plays host to several corporate offices for Whole Foods, and H-E-B, as well as large international conferences like SXSW.
"Looking at condos downtown right now: there are some really amazing towers downtown," Mason shares. "If you look back at photos of the Austin skyline ten years ago versus now: completely different."
Downtown Austin Highlights
Actual Tax Rate: 2.974923%
Average Home Price: $715,534
Choose Jester if you want proximity to downtown Austin, and the ability to retreat from the bustle of the city in the evenings. "Jester is just northwest of Austin," Mason explains. Nestled into the Texas hill country, Jester is located off highway 360 and directly across from Bull Creek Park.
The other major advantage of moving away from downtown Austin is affordability. Property tax rates are much less due to the absence of the “Austin Downtown Public” tax.
Jester Highlights
Actual Tax Rate: 1.974923%
Average Home Prices: $635,609
For those who want a more traditional Austin vibe, and maintain access to central Austin, choose Brentwood. "Brentwood is a really eclectic mix of different Austin folks," Mason says. "There’s still easy access to downtown, but it's so much quieter."
Brentwood also avoids the Austin Downtown Public tax, and homes come in at a similar price point to Jester. So pick your choice - hill country, or Austin Texas ‘weird’.
Brentwood Highlights
Actual Tax Rate: 1.975223%
Average Home Price: $638,381
Austin's home to more than 15 top tech headquarters. If you’re moving to the area to work for one of these companies, we looked at neighborhoods popular with employees of major tech companies such as Tesla, and Apple.
Lakeway is an upscale neighborhood that borders Lake Travis. For entrepreneurs: “Lakeway is the first one that comes to mind," Mason shares. "You're gonna get that hill country view, you're gonna get that beauty of Texas. And of course, they still have very easy access to Austin.”
Part of the draw? Activities like cycling, boating, and hikes. “I find that my [entrepreneur] clients tend to value having things to do. So having really good access to the lake, they're within a 20-minute drive of Lake Travis.“
Lakeway Highlights
Actual Tax Rate: 1.907823%
Average Home Price: $661,392
"Dripping Springs is also a really great one for [professionals]," Mason explains. "You're gonna get a lot of great golf courses out between Dripping Springs and Lakeway — some of the more exclusive golf clubs like Spanish Oaks, for example, are out that way."
Dripping Springs brings you off the beaten path. While it’s popular with tech company employees and entrepreneurs, it’s well over 40 minutes from central Austin. If your job’s not remote, it may not be a great fit. Because of the strong demand, home prices are elevated, but it does boast low tax rates compared to other neighborhoods on our list.
Dripping Springs Highlights
Actual Tax Rate: 1.68182%
Average Home Price: $736,437
North Austin is a great location for tech professionals due to the corporate campuses on Parmer Lane.
"Parmer Lane is... a corridor where most of those tech companies either lie directly on or really close to," Mason notes.
It’s impossible to talk about this part of Austin without mentioning the Domain. The domain is Austin’s mixed use, high-end business-shopping-apartment development. Most of the modern amenities (think Apple, Whole Foods, Orange Theory Fitness) are available in a walkable package.
North Austin Highlights
Actual Tax Rate: 1.974923%
Average Home Price: $697,162
For those looking to enjoy their golden years in Austin, we shifted our evaluation criteria. For retiree neighborhoods we looked at properties that had great access to activities, and healthcare within a short drive.
Georgetown is home to the “most beautiful town square in Texas.” The downtown area gets to the heart of the city’s culture. It’s filled with boutique shops, wine bars, and beautiful Texas architecture.
"Georgetown tends to come up a lot, [for retirees]" Mason shares. "The city of Georgetown has a lot of different 55+ communities…they offer a lot in terms of amenities.” Some of those amenities include things like award-winning golf courses, while others are more practical: “things like medical coverage,” a St. David’s hospital is located in town, while large medical campuses are a short drive away.
Georgetown Highlights
Actual Tax Rate: 1.798145%
Average Home Price: $503,406
Sun City is a master planned 55+ community that knows how to put together a great retirement neighborhood. “It has four different 18 hole golf courses," Mason explains. "I mean some truly exceptional lifestyle type of things - gyms, pools, indoor and outdoor lap lanes. They've got wood shops, they've got an on-site grocery store."
Surprisingly, these amenities don’t come at hugely inflated home prices or ridiculous tax rates. Homes fall on the lower side of the Austin area range at $462,649. The HOA also has relatively modest dues of $1200 per year.
Sun City Highlights
Actual Tax Rate: 1.920645%
Average Home Price: $462,649
Austin's diverse neighborhoods offer something for everyone, whether you're a young professional, a growing family, or a retiree looking for an active community. With its strong job market, excellent schools, and beautiful natural surroundings, it's no wonder that Austin continues to attract new residents from all walks of life.