Austin’s luxury real estate market runs on three things: school districts, water access, and distance from downtown. The city’s most expensive neighborhoods cluster in a narrow band west and southwest of the urban core, where hillside lots, Lake Austin frontage, and Eanes ISD zoning push prices well past $2 million.
But not all expensive Austin neighborhoods are alike. West Lake Hills and Rollingwood are separate incorporated municipalities with different tax structures than Austin proper. Tarrytown sits three miles from downtown in the city limits. Barton Creek is a collection of gated golf communities that barely registers a street presence from the outside. Each neighborhood has a different buyer profile, different cost structure, and a different investment thesis.
This guide covers six of Austin’s most expensive neighborhoods, ranked by median home price. Data is current as of early 2026 and sourced from Redfin, Realtor.com, and multiple brokerage reports.
- West Lake Hills
- Rollingwood
- Barton Creek
- Pemberton Heights
- Tarrytown
- Davenport Ranch
- Frequently Asked Questions
Quick Price Comparison
| Neighborhood | Median Sale Price | Price / Sq Ft | Character |
|---|---|---|---|
| West Lake Hills | $2.7M | $838 | Hillside estates, separate city |
| Rollingwood | $2.7M* | $946 | ~300-home enclave, Zilker-adjacent |
| Barton Creek | ~$2.1M | ~$500 | Gated golf communities, resort anchor |
| Pemberton Heights | $2.06M | $620 | 1930s estates, one mile from downtown |
| Tarrytown | $1.85M | $725 | Tree-lined streets, old-money address |
| Davenport Ranch | ~$1.4M | ~$400 | Hill Country views, master-planned |
*Rollingwood sees fewer than 30 sales per year across roughly 300 homes. Median figures shift significantly quarter to quarter. Redfin’s most recent monthly median reached $4.8M, while Realtor.com’s listing median sits at $2.7M. Treat Rollingwood pricing as directional, not definitive.
#1
West Lake Hills
| Median Sale Price | Price / Sq Ft | School District |
|---|---|---|
| $2.7M | $838 | Eanes ISD |
West Lake Hills is a self-governing city of roughly 3,000 residents occupying the limestone hills directly west of downtown Austin. It shares a zip code (78746) with much of the Westlake area but operates independently from the City of Austin, with its own city hall, police department, and zoning authority. The neighborhood is roughly three to five miles from the Congress Avenue bridge and sits entirely within the scenic overlook zone that defines western Austin.
Prices here are driven by two factors more than any other: Eanes ISD and elevation. The school district is consistently ranked among the top 10 in Texas. Buyers without school-age children still pay the Eanes premium because the resale market reflects it. The hillside terrain means most homes have unobstructed views of the Hill Country, and lots range from a quarter acre to several acres depending on the ridge line. The typical home is custom-built, 4,000 to 6,000 square feet, and sits behind a private gate or at the end of a long driveway.
The buyer profile skews toward tech founders, senior executives, and physicians who want central Austin access without the foot traffic that comes with it. Downtown is a 10 to 15-minute drive in normal conditions. Lake Austin is accessible within the city’s surrounding geography, though most West Lake Hills properties are not directly on the water.
What Buyers Should Know
West Lake Hills residents pay Travis County property taxes but not City of Austin property taxes, which knocks roughly $0.54 per $100 of assessed value off the annual bill. On a $2.7M property, that saves approximately $14,580 per year compared to an equivalent home inside Austin city limits. The tradeoff is fewer city services, though the small-city government handles roads and basic infrastructure adequately.
Many properties require septic systems rather than city sewer connections, which adds maintenance costs and can complicate remodels or expansions. Building permits run through West Lake Hills city hall, which has stricter tree preservation ordinances than Austin proper. Heritage oaks have legal protections that can limit site work. Flood risk is minimal for most ridge-line properties but increases for any lot near a drainage tributary.
Read our other 10 things every luxury buyer should know.
#2
Rollingwood
| Median Listing Price | Price / Sq Ft | Total Homes |
|---|---|---|
| $2.7M | $946 | ~300 |
Rollingwood is Austin’s smallest incorporated municipality and one of its most unusual real estate markets. The city covers less than half a square mile and contains roughly 300 homes, all single-family, set among mature live oak canopy on the edge of Zilker Park. It sits directly south of West Lake Hills and west of Barton Springs Road, close enough to downtown that residents can walk to the Barton Springs Pool in 10 minutes.
What makes Rollingwood expensive is a combination of scarcity, location, and the school district. It feeds entirely into Eanes ISD, the same district as West Lake Hills, which means Westlake High School. With only 300 homes and an ownership base that turns over slowly, inventory stays extremely tight. Properties often trade off-market. When homes do list publicly, the price per square foot at $946 (Realtor.com, 2026) is the highest of any Austin-area neighborhood with meaningful transaction volume.
The buyer profile is similar to West Lake Hills, though Rollingwood tends to attract buyers who also want walkable access to Zilker Park, Barton Springs, and the South Lamar restaurant corridor. It’s a rare combination of suburban privacy and urban adjacency that very few Austin addresses can match.
What Buyers Should Know
Like West Lake Hills, Rollingwood is a separate municipality, so residents pay no City of Austin taxes. The city has its own small government and restricts commercial development entirely. The lot sizes are generally smaller than West Lake Hills, which is why the price per square foot is higher even at similar or identical nominal prices.
Because there are so few sales per year (fewer than 30 annually), published median figures are volatile and not particularly reliable for precise valuation. Buyers need a local agent with specific off-market access. This is not a neighborhood where you find homes on Zillow first. Flood insurance requirements vary by lot; properties near the Barton Creek greenway require review before closing.
#3
Barton Creek
| Median Sale Price | Price / Sq Ft | Golf Courses |
|---|---|---|
| ~$2.1M | ~$500 | 4 championship courses |
Barton Creek is not a single neighborhood but a cluster of gated communities in southwest Austin built around the Omni Barton Creek Resort and Spa. The resort anchors four championship golf courses, and the surrounding subdivisions (Barton Creek Estates, Barton Creek Lakeside, The Preserve at Barton Creek, and others) operate as separate HOA-governed enclaves with shared security access. The area covers several hundred acres of Hill Country terrain roughly 15 miles from downtown.
What commands the price is a combination of lot size, privacy infrastructure, and amenity access. Homes here are typically 4,000 to 7,000 square feet on half-acre to multi-acre lots. Many properties have views across the greens or into the surrounding creek valleys. The security model, with gated entries and patrol services, attracts buyers who want physical separation from the rest of the city. Some of Austin’s highest-profile business owners maintain Barton Creek as a primary or secondary residence.
The neighborhood is within Austin city limits (unlike West Lake Hills or Rollingwood), so buyers pay Austin municipal taxes. However, the lower density and lot sizes mean tax bills on a per-square-foot basis are somewhat lower than in the inner-city luxury areas.
What Buyers Should Know
HOA fees in Barton Creek’s gated communities range from $300 to $800 per month depending on the specific enclave and what amenities are included. Country club membership at the Omni Barton Creek is separate and runs $10,000 to $30,000 in initiation fees plus annual dues. These costs add up and are not reflected in the purchase price.
School district zoning within Barton Creek is mixed. Parts of the area feed into Eanes ISD while others fall under Austin ISD, specifically the Bowie High School feeder pattern. Confirm school zoning for any specific address before purchasing. Some Barton Creek properties are also in flood plain zones adjacent to the creek itself; flood insurance can run $2,000 to $5,000 per year for those lots.
#4
Pemberton Heights
| Median Sale Price | Price / Sq Ft | Distance to Downtown |
|---|---|---|
| $2.06M | $620 | ~1 mile |
Pemberton Heights is a historic neighborhood about one mile north of the Texas State Capitol, bounded roughly by 35th Street to the north, Lamar Boulevard to the east, and Deep Eddy Pool to the south. It developed in the 1930s and 1940s as Austin’s first planned upscale subdivision, and many of the original homes remain. The neighborhood is compact, with approximately 300 residential lots, and it has a historic overlay that limits demolition and regulates exterior alterations on contributing structures.
The price driver here is location. No other Austin neighborhood puts you at this price point this close to downtown. Buyers who need proximity to the Capitol complex, UT Austin, or the central business district pay a significant premium over comparable square footage in the suburbs. The housing stock ranges from carefully preserved 1930s Tudor revivals to extensively remodeled or rebuilt properties that kept the original facade under historic review requirements.
The buyer profile includes state officials, UT administrators, attorneys with downtown practices, and established Austin families who have lived in the neighborhood for generations. Turnover is low. It is not a neighborhood where buyers find move-in ready modern construction easily.
What Buyers Should Know
The historic overlay creates real friction for buyers who want to renovate. Exterior modifications on contributing structures require approval from Austin’s Historic Landmark Commission, which can add months and uncertainty to a project. Interior renovations are unrestricted, but anything that affects the roofline, facade, or original materials goes through review. Buyers should have a clear renovation plan and a contractor experienced with Austin historic properties before closing.
Pemberton Heights is inside Austin city limits, so buyers pay full city and county property taxes at the combined Travis County and Austin rate of approximately 2.07% of assessed value. On a $2.06M purchase, that runs roughly $42,600 per year before any exemptions. The homestead exemption reduces taxable value for primary residences; confirm current exemption amounts with Travis County Appraisal District.
#5
Tarrytown
| Median Sale Price | Price / Sq Ft | Distance to Downtown |
|---|---|---|
| $1.85M | $725 | ~3 miles |
Tarrytown is Austin’s closest analog to an old-money residential address. The neighborhood occupies a mile-wide swath of central west Austin between Lake Austin Boulevard and 35th Street, roughly three miles from downtown. Development began in the 1920s, and the streetscape still has the proportions of that era: mature live oaks that close over the road, homes set back on modest lots, and virtually no commercial intrusion. It is one of the few Austin neighborhoods where the character has remained largely intact through the tech boom.
The price here reflects both location and the status embedded in the address. Buyers include multi-generational Austin families, physicians affiliated with the Seton or St. David’s medical campuses nearby, and professionals who want a neighborhood identity that predates the startup economy. The housing stock is a mixture of original 1920s and 1930s homes, post-war construction, and full rebuilds that have replaced original structures with $4M to $6M custom builds on the same standard lots.
Tarrytown feeds into Austin ISD, specifically the Casis Elementary feeder pattern, which is among the most sought-after elementary school assignments in Austin ISD. This adds a measurable premium to Casis-zoned properties over comparable Austin ISD homes elsewhere.
What Buyers Should Know
Lot sizes in Tarrytown are modest by Austin luxury standards, typically 6,000 to 10,000 square feet, which limits the size of what can be built. Many buyers who want larger square footage are rebuilding, and the cost of a teardown plus construction on a standard Tarrytown lot often exceeds $3M to $5M all-in. Buyers should underwrite the full build cost, not just the land acquisition, when evaluating older homes priced near land value.
Lake Austin is accessible via boat ramps and the Austin Rowing Club nearby, though Tarrytown properties are not directly on the water. Traffic on Lake Austin Boulevard during peak hours can be significant; the route into downtown via MoPac or the surface streets is one of Austin’s more congested corridors.
#6
Davenport Ranch
| Median Sale Price | Price / Sq Ft | Distance to Downtown |
|---|---|---|
| ~$1.4M | ~$400 | ~12 miles |
Davenport Ranch is a master-planned community in west Austin that developed primarily in the 1980s and 1990s along the ridge lines above Lake Austin. The neighborhood sits within Austin city limits, roughly 12 miles from downtown, and covers several hundred acres of hilly terrain with views across the Hill Country and toward the lake below. Homes are predominantly large single-family properties on quarter-acre to one-acre lots, many with pools and Hill Country sight lines from the back deck.
The price driver is the combination of views, lot size, school district access (parts of Davenport Ranch feed into Eanes ISD while others fall under Austin ISD, depending on the specific street), and the relative privacy of the western Austin corridor. It is a neighborhood for buyers who want more space and a quieter environment than central neighborhoods offer, without moving into the far suburban ring of Cedar Park or Round Rock.
The buyer profile leans toward established families and executives who have grown out of the urban core and want larger homes, better student-to-teacher ratios, and lower traffic density on their street. It is not a walking neighborhood.
What Buyers Should Know
School district zoning is the most important thing to verify at the address level in Davenport Ranch. Eanes ISD and Austin ISD boundaries run through the neighborhood, and a few streets in either direction can determine whether children attend Westlake High School or one of the Austin ISD high schools. Pull the exact AISD or EISD boundary map before making an offer.
The commute to downtown at peak hours runs 30 to 45 minutes depending on direction. MoPac (Loop 1) is the primary artery and is heavily congested during rush hour with no viable alternate route. Buyers who commute daily should test the drive before committing. Property taxes run at the full Travis County and City of Austin combined rate of approximately 2.07%, adding roughly $29,000 per year on a $1.4M purchase before homestead exemptions.
Frequently Asked Questions
What is the most expensive neighborhood in Austin, TX?
West Lake Hills and Rollingwood consistently rank as Austin’s most expensive residential areas, with median sale prices around $2.7 million as of early 2026. Both are separate incorporated cities within Travis County, not part of Austin proper, and both feed entirely into Eanes ISD. Rollingwood’s price per square foot ($946) is the highest of any Austin-area neighborhood with consistent sales volume.
Are luxury home prices in Austin rising or falling in 2026?
The Austin luxury market has been in a correction since its 2022 peak, with prices in most neighborhoods down from their highs but stabilizing in 2025 and early 2026. West Lake Hills median prices rose approximately 8% year-over-year as of April 2026 per Realtor.com data, while broader Austin luxury inventory remains elevated with over six months of supply. The market still favors buyers relative to the 2021 to 2022 period.
Does Texas have a state income tax that affects luxury homeowners?
Texas has no personal state income tax and no state capital gains tax. This is a meaningful advantage for high earners relocating from states like California (like those coming from San Francisco), New York, or Illinois. Federal capital gains tax still applies on property sales: 15% for most earners, 20% for individuals with taxable income above approximately $518,900 (2025 thresholds). The net-of-tax math on selling an appreciated Austin property is more favorable than in most states, which is part of what sustains demand from out-of-state relocators.
How high are property taxes on luxury homes in Austin?
The effective property tax rate for homes inside Austin city limits is approximately 2.07% of assessed value, combining Travis County, City of Austin, Austin ISD, and other taxing entities. On a $2.7M home, that equals roughly $55,890 per year before exemptions. Homes in West Lake Hills and Rollingwood avoid the City of Austin portion, saving approximately $14,000 to $15,000 per year on a comparable assessment. Texas does not cap annual appraisal increases for non-homesteaded properties, so investment properties and second homes can see large tax bill swings in years of high appreciation.
Is flooding a concern in Austin’s luxury neighborhoods?
Flood risk in Austin is concentrated near creek corridors, not ridgeline properties. West Lake Hills, Rollingwood, and most of Tarrytown and Pemberton Heights sit on elevated terrain with low flood exposure. Barton Creek properties adjacent to the creek itself carry significant flood risk and often require flood insurance that runs $2,000 to $5,000 per year. Any property near Barton Creek, Shoal Creek, or Waller Creek should be reviewed against the FEMA flood map before purchase. Austin’s heavy rainfall events have produced 100-year floods in back-to-back years in some corridors.
Bottom Line
Austin’s most expensive neighborhoods break into two categories: the western enclave cities (West Lake Hills, Rollingwood) where you’re paying for Eanes ISD, Hill Country elevation, and a separate municipal structure that keeps property taxes slightly lower; and the urban luxury neighborhoods (Tarrytown, Pemberton Heights) where you’re paying for proximity and address prestige. Barton Creek and Davenport Ranch serve buyers who prioritize space, privacy, and golf access over walkability or central location.
The consistent thread is Eanes ISD. Homes zoned to Eanes carry a 25% to 30% premium over otherwise comparable properties in Austin ISD. For buyers with school-age children, confirming the exact school assignment before writing an offer is not optional.
