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Austin, TX Neighborhoods With the Steepest Appreciation Since 2020

Real Estate Education July 8, 2025

Over the past decade, few housing markets have drawn as much attention—and investment—as Austin, Texas. Once considered a hidden gem, Austin has transformed into a national hotspot, fueled by tech migration, lifestyle appeal, and a booming job market. Between 2020 and 2025, certain neighborhoods have experienced dramatic home price growth, fundamentally reshaping the landscape of local real estate.

But not all appreciation is created equal. For investors, especially those who are cautious yet ready to act, understanding which areas have delivered strong, sustained growth is only part of the equation. The more important question is: which neighborhoods are still worth entering today?

This blog provides a detailed, ZIP code-level breakdown of Austin’s steepest appreciation zones based on historical sale price data, while also analyzing current market indicators such as inventory, days on market, and pricing power. By combining long-term trends with present-day insights, we aim to guide investors toward areas that still show upside potential.

Let’s explore where appreciation has been strongest and what’s next for each of these investment-worthy pockets of Austin.

Top Performing ZIP Codes Since 2020

Over the past five years, a number of Austin neighborhoods have shown exceptional price appreciation, with some increasing by over 80%. This level of sustained growth reflects not only demand, but the enduring desirability of these areas among both homeowners and long-term investors.

The strongest appreciation came from Westlake Hills (78746), where the median home price rose by over $530,000 in five years. This area has long been a favorite for affluent buyers due to its prestigious schools, scenic hill country views, and proximity to downtown.

Closely behind are the Lake Austin and West Austin ZIPs (78730, 78733, and 78732) which also saw exceptional price climbs. These neighborhoods offer large-lot homes, lake access, and privacy, making them ideal for high-net-worth homeowners and investors who prioritize long-term holding value.

Central Austin (78756) also stands out, blending historic character with central accessibility. Its nearly +69% growth over five years reflects the appeal of location-driven investment.

Overall, this pattern confirms that proximity to nature, privacy, and top-tier public schools have been key drivers of value over the past half-decade.

The Laggards: Where Growth Stalled

While much of Austin experienced impressive price appreciation over the past five years, not every ZIP code followed the same trajectory. A few areas, most notably 78705, 78701, and 78721, have underperformed compared to the city’s broader trend.

  • 78705 (UT/West Campus): This ZIP includes the University of Texas campus and a high concentration of student housing. Post-pandemic shifts in enrollment, changing rental demand, and aging property stock may have suppressed appreciation. Many properties here cater to short-term renters rather than long-term homeowners, limiting price growth.

  • 78701 (Downtown): While still one of the most expensive areas in the city, Downtown Austin has seen modest growth. This could be due to market saturation, a pause in ultra-luxury condo demand, or shifting preferences toward suburban space during and after COVID.

  • 78721 (East Austin): Once a fast-rising area, 78721 may be showing signs of stabilization. While still up over 13% since 2020, it's fallen behind the explosive growth seen in nearby ZIPs like 78702. Development bottlenecks or price ceilings may be contributing.

These areas may not be ideal for short-term gains, but they shouldn't be ruled out. In fact, low appreciation can sometimes signal a coming rebound, especially if broader fundamentals remain strong (proximity to downtown, development interest, or transit access).

For long-term investors, these ZIPs may offer lower entry points, particularly if trends shift back toward dense urban living or if redevelopment increases in areas like 78721.

Where the Market Is Still Moving Fast

While long-term appreciation is crucial for evaluating historical performance, understanding current market velocity helps determine whether a neighborhood still holds momentum. Two key indicators (Days on Market (DOM) and Sale-to-List Price Ratio) offer valuable insight into how quickly homes are selling and how competitive those sales are.

Below are ZIP codes where homes are not only moving fast but also commanding strong offers (highlighted in blue):

  • Fast DOM: Homes in these ZIPs are selling in under 45 days, well below typical market averages, signaling active buyer demand and limited time on the market.

  • High Sale-to-List Ratios: With homes closing at or near asking price, often above 97%, sellers maintain pricing power, and buyers are entering competitive scenarios.

These indicators suggest that neighborhoods like 78751 (Hyde Park), 78756 (Brentwood), and 78733 (Rob Roy / Cuernavaca) are not only desirable but also operating at a fast clip, reinforcing their ongoing appeal for investors who want in before further appreciation.

Even after years of growth, these ZIPs show no signs of market fatigue. They represent zones where momentum is still strong, and where buyer interest continues to push homes off the market quickly and at premium pricing.

Inventory and Listings: Is There Room to Enter?

Price growth and buyer demand are only part of the picture. For investors ready to take action, it's just as important to assess how much inventory is available. A market with strong fundamentals but zero supply offers limited entry opportunities, while high inventory may present negotiating leverage or better selection.

  • High Inventory ZIPs (highlighted in green): These neighborhoods (78704, 78702, 78701) offer more choice, especially for buyers who want to be selective. However, they may also be seeing a slight market slowdown, with properties sitting longer and more sellers competing for attention.

  • Low Inventory ZIPs (highlighted in red): These areas (78733, 78756, 78730) have limited supply, which can drive further price pressure but may make it harder for new investors to enter without paying a premium.

ZIPs with Balanced Opportunity (highlighted in blue):

  • 78748 (South Austin): Offers strong demand (97.5% sale-to-list) and moderate inventory (197 active listings), making it a strategic entry point for value-conscious investors.

  • 78732 (Steiner Ranch): Combines high appreciation (+45.43%), fast sales (44 DOM), and moderate inventory (85), a balanced, high-quality market for longer-term positioning.

For investors, balanced ZIPs are ideal; they provide room to negotiate or choose among listings, but still move fast enough to indicate healthy demand. These are the areas where you can still get in without being priced out or facing intense buyer competition.

Best Bets for 2025 Investors

After analyzing price appreciation, market momentum, and inventory conditions across Austin’s top ZIP codes, a few standout areas emerge as strong candidates for investment in 2025. These ZIPs combine long-term growth, strong present-day demand, and competitive sale dynamics, making them ideal for investors who want both historical validation and future potential.

Here’s a refined shortlist of the most promising ZIP codes (highlighted in green):

  • 78746 (Westlake Hills): Unmatched long-term growth and continued prestige, with desirable schools, amenities, and luxury inventory. While inventory is moderate, demand remains solid.

  • 78730 & 78733 (Lake Austin Corridor): These areas offer natural appeal, exclusivity, and steady turnover. Despite higher price points, homes sell quickly and near list, signaling a strong and resilient luxury market.

  • 78756 (Central Austin): Offers a central location with neighborhood charm. Strong growth, competitive pricing, and low DOM make this ZIP a well-rounded investment.

  • 78745 (South Austin): More accessible price point, high transaction volume, and the highest sale-to-list ratio on the list. Ideal for value-focused investors looking to tap into consistent demand.

Whether you're targeting appreciation, competitive pricing, or entry flexibility, these ZIP codes offer a balanced mix of growth and opportunity. They’re positioned not just for what they’ve already delivered but for where they’re headed next.

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Austin’s real estate appreciation over the past decade is undeniable, but as the data shows, not all ZIP codes have performed equally. While some areas like Westlake Hills, Lake Austin, and Central Austin have surged in value, others have leveled off or slowed, highlighting the importance of targeted, ZIP-specific analysis.

For investors in 2025, success lies not just in recognizing where growth has happened, but in identifying where demand remains strong, inventory is balanced, and homes continue to sell quickly and competitively.

Whether you’re looking for long-term stability, high rental potential, or strategic value in a transitioning neighborhood, understanding both the past and present can help you make smarter, data-backed decisions.

If you're exploring investment opportunities in Austin and want localized insight on where to enter next, reach out for customized, ZIP-specific guidance tailored to your goals.

 

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