Follow Us

Main Content

Hottest Neighborhoods in Austin 2026 — What Redfin’s Report Shows

Home › Blog › Hottest Neighborhoods in Austin
Market PulseAustin TX — Fall 2026

Hottest Neighborhoods in Austin 2026 — What Redfin’s Report Shows

Redfin just named the five hottest neighborhoods in Austin for 2026. Here is what makes them stand out, and what it means for you as a buyer or seller.

Tammy Davison, Austin real estate agent
Tammy Davison
REALTOR® · Realty Austin | Compass RE Texas · Published
Direct Answer

What are the hottest neighborhoods in Austin in 2026?

According to Redfin, the five hottest neighborhoods in Austin are Tanglewood Forest (78748), Buttercup Creek (78613), Behrens Ranch (78681), Milwood (78727), and Johnston Terrace (78721). All five sell faster than the metro, where homes take a median of 74 days. In addition, each one sees more homes sell over asking. Tanglewood Forest ranks first, with 20% of homes selling above list.

Hottest neighborhoods in Austin 2026 – Tammy Davison

Talk to Tammy About Your Next Move →

Austin is a buyer’s market, but not everywhere. Prices are down across the metro, and homes are sitting longer. Still, a handful of areas keep selling fast. Here is what Redfin found and why it matters.
Snapshot

The hottest neighborhoods in Austin at a glance — fall 2026

Redfin compared July and August 2026 sales with the same months in 2025. Here is how the five hottest neighborhoods in Austin stack up against the metro as a whole.

Neighborhood Median price YoY Days on market Sold over list
1. Tanglewood Forest
78748 · South Austin
$405,000 −5% 53 20%
2. Buttercup Creek
78613 · Cedar Park
$492,500 +2% 49 14%
3. Behrens Ranch
78681 · Round Rock
$489,000 −2% 46 13%
4. Milwood
78727 · North Austin
$498,500 −2.2% 43 18%
5. Johnston Terrace
78721 · East Austin
$492,500 −6% 67.5 13%
Austin metro
All ZIP codes
$415,000 −6% 74 11%

Source: Redfin, Austin Hottest Neighborhoods 2026, published October 21, 2026. Every neighborhood on the list sells faster than the metro. In addition, each one sees a larger share of homes go over asking.

The Top 5

Inside each of the hottest neighborhoods in Austin

1. Tanglewood Forest (78748)

Tanglewood Forest sits on both sides of Slaughter Lane, between West Gate Boulevard and Menchaca Road. Most homes are ranch houses from the 1970s and ’80s. Because of that, buyers here often trade a condo for a house with a real yard. Also, MoPac and I-35 are both close. Southpark Meadows covers everyday shopping, and Manchaca Road adds local spots with live music. For seller-side detail, see our 78748 seller guide.

2. Buttercup Creek (78613)

Buttercup Creek in Cedar Park is known for newer homes, strong schools, and a close community feel. It also offers pools, parks, and trails. According to Redfin, many buyers work in tech or healthcare. In addition, the new Dell Children’s Medical Center and an Austin Community College campus are nearby. Homes range from about $300,000 to $750,000.

3. Behrens Ranch (78681)

Behrens Ranch is a planned Round Rock community near Dell’s global headquarters. For example, residents get a pool, tennis courts, and trails. Williamson County Regional Park is also close by. Most homes date to the early 2000s, and many have been updated. Typical homes run 3,000 to 4,000+ square feet, priced from about $600,000 to over $900,000.

4. Milwood (78727)

Milwood wins on location. It is a short drive to Apple’s North Austin campus, Dell, and IBM. Similarly, The Domain is nearby. The neighborhood spans Round Rock ISD and Austin ISD, and most homes were built in the ’80s and ’90s. As a result, average prices sit in the $400,000s.

5. Johnston Terrace (78721)

Johnston Terrace in East Austin offers mid-century ranches and bungalows. Lots often run a quarter to half an acre. Moreover, downtown is 15 minutes away or less. The airport and the Southern Walnut Creek Trail are close as well. For that reason, many buyers here work in aviation or tech.

Why They Win

What the hottest neighborhoods in Austin have in common

Look past the names, and a clear pattern shows up. In fact, the same four traits appear in every neighborhood on the list:

  • Strong schools. All five sit in well-regarded school districts.
  • New places to eat and shop. Fresh restaurants and retail signal momentum.
  • Easy commutes. Dell, Apple, IBM, downtown, and the airport are all close.
  • Well-kept homes. Move-in-ready homes draw the most offers.

Price matters, too. Four of the five have medians just under $500,000. Meanwhile, Tanglewood Forest comes in at $405,000, about $10,000 below the metro median. For more options in that range, see our guide to affordable neighborhoods in Austin.

Buyers

What the hottest neighborhoods in Austin mean for buyers

Across most of Austin, buyers have the upper hand. Redfin’s Austin sales manager, Scott Gustafson, called this “the prime time to be a buyer.” In fact, homes in the metro take 74 days to sell. So there is room to negotiate on price, repairs, and closing costs.

The hottest neighborhoods are different, though. In contrast, good homes here still draw several offers. If you want one of these areas, plan ahead:

In short, the leverage you have elsewhere in Austin may not carry over here.

Sellers

What the hottest neighborhoods in Austin mean for sellers

Even in hot areas, most homes still sell at or below list. The sellers who win price well from day one. Redfin’s advice matches what we see: finish repairs before you list. Then price for the home’s true condition, not last year’s market.

On the other hand, overpricing tends to backfire. That is because a home that sits gets lower offers. Often, it ends up selling for less than it would have at the right price. To start, find out what your home is worth. Then read our tips on selling a home fast in Austin.

Context

A buyer’s market with pockets of competition

Overall, Austin is a buyer’s market. The metro median fell 6% to $415,000. Likewise, only 11% of homes sold over asking. Still, demand has not vanished. Instead, it has moved into a few areas with strong schools, short commutes, and good value.

Here is how Redfin built the list. First, it looked at Austin-area ZIP codes with at least 50 sales from July 1 to August 31. Next, it ranked them by growth in Redfin listing views. Finally, it used the Redfin Compete Score, which shows how hard it is to win a home. For the bigger picture, see our Austin market trends for 2026.

FAQ

Hottest neighborhoods in Austin — common questions

What are the hottest neighborhoods in Austin in 2026?

According to Redfin’s October 2026 report, the five hottest neighborhoods in Austin are Tanglewood Forest (78748), Buttercup Creek in Cedar Park (78613), Behrens Ranch in Round Rock (78681), Milwood (78727), and Johnston Terrace (78721).

Is Austin a buyer’s or seller’s market right now?

Austin is a buyer’s market overall. The metro median sale price was $415,000 in July and August 2026, down 6% from a year earlier. Homes took a median of 74 days to sell. However, competition is still strong in a few neighborhoods.

Which of the hottest neighborhoods in Austin is the most affordable?

Tanglewood Forest in South Austin had the lowest median sale price on the list at $405,000. That is about $10,000 below the Austin metro median.

How did Redfin choose the hottest neighborhoods?

Redfin looked at Austin-area ZIP codes with at least 50 sales from July 1 to August 31, 2026. Then it ranked them by growth in Redfin listing views and by the Redfin Compete Score, which measures how hard it is to win a home.

Should I wait to sell my Austin home?

It depends on your goals, your neighborhood, and your home’s condition. Homes that are well prepared and priced right are still selling. A local agent can show you how similar homes are doing right now.

The hottest neighborhoods in Austin for 2026 are Tanglewood Forest, Buttercup Creek, Behrens Ranch, Milwood, and Johnston Terrace, per Redfin. All five sell faster than the metro, and more of their homes go over asking. For buyers, that means planning ahead in these areas. For sellers, it means pricing right from the start. Questions about your own neighborhood? Reach out to Tammy.

Austin may favor buyers, but the best neighborhoods still reward the people who show up ready.

Tammy Davison — REALTOR® | Realty Austin | Compass RE Texas
512.888.8161 · More Market Insights
Tammy Davison Tammy DavisonREALTOR® · Realty Austin | Compass RE Texas

Schedule a Consultation →

Austin Metro — Jul–Aug 2026
Median price: $415,000
Year over year: −6%
Days on market: 74
Sold over list: 11%

In addition, see our guides to Best Austin Neighborhoods for Families, Average Home Prices in Austin’s Most Popular Neighborhoods, and How to Buy a Home in Austin Texas.

Similarly, you may find Is Home Staging Worth It in South Austin? and New Home Developments in Austin Texas helpful.

Source: Redfin, October 21, 2026, as reported by CultureMap Austin. Data covers July–August 2026 compared with the same period in 2025.

Skip to content