Thinking about making Austin, Texas your new home? Known as the Live Music Capital of the World, living in Austin offers an exciting blend of music, culture, and outdoor activities.
Although Austin’s cost of living is about 2% lower than the national average, it remains one of the more expensive cities in Texas. The median home sale price is currently $515,342, higher than the national average but still relatively affordable. But that's only half the story as Austin offers strong real estate appreciation rates and long-term value for investors.
This guide explores the best neighborhoods in Austin, Texas, comparing them by lifestyle, amenities, and price points. From the bustling streets of Downtown Austin to the serene landscapes of Barton Hills, discover which of the best neighborhoods in Austin can meet your budget and lifestyle needs.
5 Best Neighborhoods in Austin
Here’s a breakdown of the best neighborhoods in Austin for homebuyers.
Downtown Austin
Downtown Austin is the heart of the city, known for its skyscrapers, busy nightlife, and a foodie scene that never disappoints. Living in Downtown Austin means having Lady Bird Lake just a walk away for morning jogs or paddle boarding excursions.
You’re also close to historic Sixth Street, where live music is a pleasant constant. Downtown is ideal for those who love city life and don’t mind a bit of hustle and bustle. It's where high-end restaurants meet food trucks, and boutique shops line the streets. Enjoy an eclectic dining scene with hotspots like Eddie V’s and Franklin Barbecue.
- Median Sale Price: Around $670,000.
- Cost of Living: Downtown Austin's cost of living score is 129.1, a bit higher than the national average but more affordable than some major U.S. cities.
Pros of Living in Downtown Austin
- Proximity to businesses and offices, reducing commute time
- Endless dining options, from local eateries to fine dining
- Lively arts and music scene, perfect for culture enthusiasts
- Access to outdoor activities like walking and cycling along the lake
Cons of Living in Downtown Austin
- Moderately high cost of living and home prices
- Limited parking availability, making a car less convenient
- Noise levels can be high
- Smaller living spaces compared to suburban housing options
Tarrytown
- Tarrytown is like the VIP section of the city and is considered by many to be one of the best neighborhoods in Austin. It’s for those who like the premium life of downtown Austin, except for the noise and the hustle and bustle. Tarrytown has a population of around 10,000 people, compared to Downtown Austin’s 15,000+ in addition to thousands of tourists every week.
Tarrytown has that old-school charm with historic homes and massive oak trees and is steeped in American history. Lake Austin is just a short drive away, with direct train access to Grand Central. It's got quiet streets with upscale vibes.
Tarrytown’s food scene is low-key yet impressive. Plus, you’re only about 10 minutes from downtown Austin without feeling like you live in the middle of the action.
- Median Sale Price: $1.92M
- Cost of Living: The cost of living in Tarrytown is notably higher than the Austin average, with housing costs being a significant factor. This higher living cost is due to the neighborhood's desirable location, high-quality amenities, and strong community appeal.
Pros of Living in Tarrytown
- Beautiful parks and close to Lake Austin
- Quiet, peaceful atmosphere with upscale homes
- Top-rated schools and family-friendly vibes
- Easy access to downtown
Cons of Living in Tarrytown
- Limited nightlife and entertainment options
- High cost of living; not the best spot for those on a tight budget
Mueller
Mueller is Austin’s version of a modern-day village. It has walkable streets, trendy cafes, and many parks. Popular eateries serve a mix of Italian-inspired cuisine and Southern comfort food, like popular hotspots L’Oca d’Oro and Colleen’s Kitchen.
This neighborhood was built with community in mind, with features like farmer’s markets, bike trails, and energy-efficient homes. Plus, it’s just 3 miles (around 15 minutes) from Austin's downtown, giving you a light city vibe without the traffic jams.
- Median Sale Price: Around $771,750, although prices were 12.5% lower in August 2024 than last year
- Cost of Living: Slightly above the national average
Pros of Living in Mueller
- Walkable community with shops, restaurants, and parks
- Eco-friendly homes with a focus on sustainable living
- Family-friendly with tons of activities, from splash pads to weekend markets
- Quick access to Downtown Austin
Cons of Living in Mueller
- Home prices can be steep for first-time buyers
- Higher cost of living, especially for food costs
- Limited nightlife compared to some other Austin neighborhoods
- A bit crowded during popular events or markets
Old West Austin
Old West Austin offers an urban feel—full of classic bungalows, tree-lined streets, and a dash of Austin’s quirkiness.
You’re just a stone’s throw from downtown (around a 6-minute drive), yet it feels like a small, tight-knit community. Old West Austin is perfect for those who love character-filled homes and want to be close to the action. From Jeffrey’s, a beloved fine-dining spot, to Cipollina, an Italian café, there are plenty of local dining options at almost every block.
- Median Home Sale Price: Around $1.475M
- Cost of Living: Higher than the national average, especially for housing and food. Utilities cost an average of $170 monthly.
Pros of Living in Old West Austin
- Proximity to downtown and the University of Texas campus
- Charming, historic homes with unique architecture
- Great food scene with local eateries and cafes
- Lively culture and easy access to entertainment options
Cons of Living in Old West Austin
- Steep home prices and property taxes
- Limited yard space for those wanting an enormous backyard
Barton Hills
Barton Hill is one of the best neighborhoods in Austin, offering the perfect mix of nature and city life. Renowned as one of the poshest areas in Austin, it's situated near Barton Creek Greenbelt, so outdoor adventures are practically in your backyard.
With Zilker Park and Barton Springs Pool close by, weekends can be all about hikes, picnics, and swimming. Barton Hills is also a haven for foodies, with spots like the original Chuy’s for Tex-Mex classics and Snooze A.M. Eatery for brunch favorites.
Austin downtown is also just a 10-minute drive away, making it easy to enjoy the best of both worlds. Barton Hills is ideal for those who want city access with a side of nature.
- Median Sale Price: Around $905,283
- Cost of Living: 58% higher than Austin's average and 46% higher than the national average, mainly due to the cost of housing. Utilities may reach or exceed $200 due to the size of the homes.
Pros of Living in Barton Hills
- Access to Barton Creek Greenbelt for hiking and biking
- Family-friendly with parks, pools, and outdoor activities
- Great food scene and local shops
- Close to downtown, but with a laid-back, nature vibe
Cons of Living in Barton Hills
- High home prices and property taxes
- Cost of living, especially dining out, is above average
- Traffic can be a headache during peak hours
- Limited nightlife
What Is It Like Living in Austin?
Anyone who has visited Austin will tell you the hype is real. From SXSW to its food truck scene, there’s always a music festival, concert, great meal or fun cultural event.
Austin offers so much to residents but the cost of living is relatively high. Home prices are climbing quickly, proving the area's value and how desirable it is to homebuyers.
If you’re moving to this vibrant city, research to confirm which is the best neighborhood in Austin for your lifestyle and needs.
FAQ
What is the best neighborhood in West Austin?
Tarrytown is one of the best neighborhoods to live in West Austin. Nestled just west of downtown Austin, it is close to Lake Austin and is perfect for families, friends, and anyone who loves a mix of nature and city life.
What part of Austin has the best nightlife?
Head straight to Sixth Street if you're looking to experience the Austin nightlife. Sixty Street is the life of the party in Austin—live music, dancing, and bars galore. It’s like Vegas, but with a Texas twang.
What is the wealthiest area in Austin, Texas?
If you’re aiming for a bit of luxury, Zilker and Oak Hill are two of the best spots in Austin. From sprawling homes to lush golf courses, these two areas have it all and maybe even a celebrity neighbor.
What is North Austin known for?
Considered one of the best places to live in Austin, North Austin is known for outdoor activities, green space and suburban comfort that doesn’t shy away from city perks. You’ll find parks, tons of great shopping, and a laid-back vibe perfect for young professionals and families.
