The story of this market
The typical home in ZIP 78738 sells for about $975,000, or $285 per square foot.
Homes take about 93 days to sell, which is slow. HUD's fair market rent for a two-bedroom is $3,800 a month.
ZIP 78738 — Lakeway
The 78738 housing market is currently in a neutral state with a median listing price of approximately $998,500 and a median sold price of $1.79 million. Market activity is driven by high-income demographics and demand for luxury residential properties, though specific metrics like closed sales and price cuts are not currently published at the ZIP level. The area remains a high-demand destination for families due to its school quality and proximity to Austin.
This ZIP is ideal for affluent family buyers and professionals seeking luxury suburban living with high-quality schools, proximity to outdoor recreation, and a manageable commute to Austin.
Median prices moved sideways 0.0% year over year.
Homes spend a median of 93 days on market with 0.0 months of supply — a slower-moving market.
0% of listings have cut prices · homes sell at 0% of asking — demand is holding steady.
no recorded foreclosure-ledger notices (0.0 per 10,000 residents) · unemployment 2.5% · poverty 3.8% — a stable, low-distress profile.
ZCTA 78738, Travis County TX
The area is served by highly-rated public school districts, including Lake Travis ISD, which is a primary driver for family-oriented residential demand in the region.
The area experiences significant development momentum driven by its proximity to Austin's employment hubs and the expansion of luxury residential communities in Bee Cave and Lakeway.
Composed from the ARED governance burden registry — tier-native tax structure (state + county + city + special districts), never averaged. State (Texas) — Senior (65+) and Disabled Homestead Exemption and School Tax Ceiling: Grants an additional mandatory $10,000 exemption from ISD appraised value (Taxable Value_ISD = Appraised Value - $100,000 - $10,000) and establishes an absolute statutory tax freeze (school tax ceiling): total ISD property taxes cannot exceed the dollar ceiling established in the… State (Texas) — General Residence Homestead Exemption and 10% Valuation Growth Cap: Imposes mandatory state-level valuation deductions and growth limitations on the qualifying homestead: (1) Mandates a $100,000 deduction from appraised value for independent school district (ISD) maintenance and operations/debt taxation: Taxable Value_ISD = Appraised Value - $100… State (Texas) — Ad Valorem Real Property Taxation and Assessment Ratio: Mandates ad valorem appraisal of all real property at 100% of fair market value as of January 1 each tax year (Assessment Ratio = 1.00).
Residents primarily commute via Highway 71 toward downtown Austin and the surrounding tech employment corridors, with commute times averaging approximately 25.9 minutes.
The ZIP features extensive access to the Hill Country landscape, including proximity to Lake Travis, numerous golf courses, and upscale shopping and dining districts like the Hill Country Galleria.
The rental market is characterized by high-end single-family offerings with a gross rental yield of approximately 4.57% as of July 2026.
The local economy is anchored by the broader Austin-Round Rock-San Marcos metro area, with significant employment in technology, professional services, and retail sectors.
Transportation is heavily reliant on private vehicle use via major corridors like Highway 71, with limited public transit infrastructure serving this suburban geography.
Development is focused on master-planned residential communities and mixed-use commercial expansions along the Highway 71 corridor.
Parcels in this ZIP are subject to various special districts, including Municipal Utility Districts (MUDs) and independent school districts like Lake Travis ISD.
Data compiled from Census Reporter and the Zip Code App.
Public schools whose reported address is in this area (NCES). Not attendance boundaries — schools that serve residents may sit outside it. Check the district's address locator for assignment.
A major open-air shopping, dining, and entertainment destination serving the Bee Cave and Lakeway area.
A large reservoir providing extensive recreational opportunities including boating, fishing, and waterfront parks.
Key-figure check: median price diverges 83.5% from the nearest retained anchor (published ten-year series (2024)) — beyond the 12.5% tolerance; an automated validation case is open and the value publishes pending its verdict. Research outlier held out — this pass returned a median of $1,789,415 (83.5% off the retained reading), contradicting every independent anchor; the prior reading stands pending corroboration. Validation: the flagged $1,789,415 (+83.5% vs the published ten-year series (2024)) could not be independently corroborated and was reverted to the prior cycle value pending review; the case is under review in the Command Center.