Ed Neuhaus 
Ok, lets talk about new construction in Dripping Springs. With over 8,000 permitted lots and at least a dozen active communities, buyers are looking at one of the biggest development booms in Central Texas. The problem is figuring out which communities actually deliver value and which ones are priced for maximum profit. This is the guide I wish every buyer had before they signed a contract with a builder.
I have been selling homes in the Dripping Springs market since 2009, and I have watched builders come and go. Some deliver quality homes with fair pricing, others stick you with inflated MUD taxes and cut corners on finishes. This article breaks down every major new construction community in Dripping Springs right now, the builders behind them, what you actually pay when you factor in MUDs, and whether they are worth it.
The New Construction Boom: What 8,000+ Lots Means for Buyers
Dripping Springs is not slowing down. The city has approved massive master-planned communities that will reshape the area over the next decade. Double L Ranch alone will bring 2,200+ homes. Wild Ridge is planned for 900+ homes. Caliterra is expanding with The Ranch phase, and Headwaters just opened a brand new elementary school on site.
For buyers, this creates opportunity and risk. Opportunity because you have choices across every price point from the upper $300Ks to well over $1M. Risk because not all communities are created equal, and the wrong choice can cost you thousands per year in hidden MUD taxes.
Lets walk through each major community, builder by builder, so you know exactly what you are getting into.
Big Sky Ranch: Affordable Entry, Final Phases
Builder: Meritage Homes
Price Range: $370K-$650K (varies by collection)
Lot Sizes: Varies by collection, typically 50-70 foot lots
Timeline: Final phase expected in 2026 — this is your last shot
School Zoning: Dripping Springs ISD (specific campus depends on phase, check with DSISD attendance zones)
MUD/PID: Yes, MUD district applies — expect $0.80-$1.20 per $100 assessed value on top of regular property taxes
Incentives: Meritage typically offers closing cost assistance and design credits when using preferred lender. In early 2026, I have seen $10K-$15K in credits depending on the home.
Amenities: 48 acres of parkland, 3.1-acre amenity center with pool, splash pad, playground, trails connecting to Founders Memorial Park
Ed’s Take: Big Sky Ranch is one of the most affordable ways to get into Dripping Springs new construction right now. Meritage builds a solid product, not luxury but reliable. The MUD taxes are real though — on a $450K home you are looking at around $300-$400/month just for the MUD. Do the math before you fall in love with the lower sticker price. If this is your only shot at Dripping Springs under $400K, it is worth considering. But compare the total monthly payment to a resale home in Belterra or an older neighborhood with no MUD, and you might find better value.
Heritage at Dripping Springs: Mid-Priced Workhorse
Builders: M/I Homes, Tri Pointe Homes (Park Collection)
Price Range: $360K-$655K (M/I Homes), $435K-$625K (Tri Pointe)
Lot Sizes: Variety of homesite sizes, community will feature nearly 600 homes
Timeline: Ongoing phases through 2026
School Zoning: Dripping Springs ISD
MUD/PID: Yes, MUD district applies
Incentives: Both builders offer closing cost assistance and rate buydowns. M/I Homes and Tri Pointe are typically flexible on design center credits.
Amenities: Planned community center, pool, ponds, parks, playgrounds. Less than 25 miles from Downtown Austin.
Ed’s Take: Heritage is solid middle ground. M/I Homes and Tri Pointe both build quality homes with good warranties. The price point overlaps with Big Sky Ranch but you get a slightly newer community and more builder options. Again, the MUD taxes apply, so your $500K home is going to feel more like a $550K resale home once you factor in monthly payments. If you want new construction with solid builders in the $400K-$600K range, Heritage makes sense. Just do not skip the independent inspection before closing — I have seen punch list items drag on for months with builders who are juggling too many homes at once.
Headwaters: Tech-Forward, Sustainable Living
Builders: Ashton Woods (sold out/final opportunities), David Weekley Homes, Newmark Homes, Toll Brothers, Coventry Homes, Taylor Morrison
Price Range: $500K-$1.5M+
Lot Sizes: Varies by builder, 50-70 foot lots common
Timeline: Active, ongoing phases
School Zoning: Dripping Springs ISD. Major selling point: Elementary School #6 is onsite, opening for 2025-26 school year with 850-student capacity for PK-5.
MUD/PID: Yes, MUD district applies
Incentives: David Weekley offered special incentives for homes purchased January-February 2026. Toll Brothers typically offers design center credits and closing cost assistance. Each builder is different, so ask directly.
Amenities: Resort-style amenities, trails, parks, fitness center, coffee shop within walking distance. Smart home technology and sustainability focus.
Ed’s Take: Headwaters is the most polished master-planned community in Dripping Springs right now. The onsite elementary school is a huge draw for families — no morning car line stress. The builder lineup is strong, especially David Weekley and Toll Brothers. You pay a premium for the lifestyle here, and the MUD taxes still apply, but the amenities and walkability actually deliver. If you want a tech-forward, modern neighborhood with DSISD schools and resort amenities, Headwaters is the best option in this price range. Just know you are paying for it.
Caliterra: Hill Country Luxury Expansion
Builders: Drees Custom Homes, David Weekley Homes, Scott Felder Homes. Custom builders include Alkire Construction, Atlas Custom Homes, LTB Design Build.
Price Range: $700K-$1.2M+ (The Ranch at Caliterra phase), Drees Custom lots from $990K-$1.2M+
Lot Sizes: 70-, 80-, 100-, and 110-foot homesites. The Ranch features 80- and 100-foot lots.
Timeline: The Ranch phase: lots available spring 2026, first move-ins December 2026
School Zoning: Dripping Springs ISD
MUD/PID: MUD district applies
Incentives: David Weekley and Drees both offer design center credits and closing cost assistance. Premium lots come with lot premiums — negotiate these.
Amenities: 250 acres of preserved green space, hike and bike trails, access to Onion Creek, private fishing dock, event space, fitness center, lap pool, resort-style pool, shaded kiddie pool, dog park, event lawn, stage, scenic overlooks. HOA fees $1,500/year.
Ed’s Take: Caliterra is where you go if you want Hill Country luxury with room to breathe. The preserved green space and access to Onion Creek are real selling points — this feels like you are living in the Hill Country, not a subdivision. Drees builds a premium product, and David Weekley is reliable. The lot sizes are generous, and the amenity package is top-tier. You are paying $700K+ and still dealing with MUD taxes, so do the math on total cost. But if you are looking at this price point and want a true Hill Country lifestyle 20 miles from Austin with Dripping Springs schools, Caliterra delivers.
Double L Ranch: The Biggest Bet in Dripping Springs
Builders: Multiple builders (TBD as phases roll out)
Price Range: Wide range expected, from first-time buyer options to custom estate homes
Lot Sizes: Mix of lot types across 1,600+ acres
Timeline: Homesite availability expected mid-to-late 2026. This is a decade-long buildout with 2,200+ homes planned.
School Zoning: Dripping Springs ISD. Dripping Springs Elementary is onsite.
MUD/PID: MUD district almost certain given the infrastructure requirements
Incentives: Too early to say — builders have not announced specific programs yet
Amenities: Resort-style pool, outdoor amphitheater, full-service amenity center, fitness center, trails, parks, playgrounds. 500 acres of parkland planned.
Ed’s Take: Double L Ranch is the wild card. 2,200+ homes is massive — this is going to reshape Dripping Springs. The amenity package looks strong on paper, and having an elementary school onsite is a big deal. But here is what I tell buyers: early phases in mega-developments like this can be hit or miss. You are buying into a construction zone for years, and builder quality varies. MUD taxes will be high in the early phases — expect $1.00-$1.50 per $100 assessed value. If you want to be part of a brand new community with resort amenities and DSISD schools, Double L Ranch could be worth the wait. But I would not rush into Phase 1. Let the first round of buyers move in, then decide.
Wild Ridge: 900+ Homes, Nature Focus
Builders: TBD (multiple builders expected)
Price Range: Not yet announced
Lot Sizes: 283 acres, 960 homes planned
Timeline: Development underway, specific phases TBD
School Zoning: Dripping Springs ISD
MUD/PID: MUD district likely
Incentives: Too early to say
Amenities: Rolling hills, mature trees, scenic parks and trails, nature-focused design
Ed’s Take: Wild Ridge is still early. 960 homes on 283 acres means this is a big project, and the nature focus is the main selling point. If you want Hill Country views and mature trees without going full custom build, Wild Ridge might be worth watching. But right now there is not enough information to recommend jumping in. Wait for builder announcements, pricing, and MUD details before you commit.
The Real Cost: New Construction vs Resale with MUD Taxes
Here is the part most buyers do not think about until it is too late. New construction in Dripping Springs almost always comes with MUD taxes. MUD stands for Municipal Utility District, and it is how builders finance the infrastructure — water lines, sewer, drainage, roads — before the city takes over.
The MUD tax shows up as an additional property tax on top of your regular city and county taxes. And it is not small.
Lets compare two $500K homes:
- New construction in a MUD: Regular property taxes around $1.04 per $100 (Dripping Springs base rate), PLUS MUD tax of $1.00 per $100 = $2.04 total. Annual property tax: $10,200. Monthly escrow: $850.
- Resale home without MUD: Regular property taxes $1.04 per $100 = $1.04 total. Annual property tax: $5,200. Monthly escrow: $433.
That is a $417/month difference. Over a 30-year mortgage, you are paying an extra $150,000+ just for the MUD.
Now, MUD taxes do decrease over time as the bonds get paid off — typically 20-30 years. But in a brand new development, you are paying peak MUD rates. So that $500K new construction home costs the same per month as a $575K resale home without a MUD.
This does not mean new construction is a bad deal. It means you need to do the math. Compare the total monthly payment — mortgage + property taxes + MUD + HOA + insurance — to a comparable resale home in an established neighborhood like Bee Cave, Lakeway, or older Dripping Springs neighborhoods. Sometimes new construction still wins because you get a brand new home with a warranty and modern finishes. But sometimes a 5-year-old resale home without a MUD saves you $300-$500/month.
I tell every buyer: look at the total cost of ownership, not just the sticker price.
What to Watch Out for with Builder Contracts
Builder contracts are written by the builder’s attorneys to protect the builder. Not you. Here is what you need to watch for:
Warranty Changes: Some builders are shifting from 10-year structural warranties to 6-year warranties for contracts signed in 2026. Get clarity on warranty terms before you sign. Ask specifically how long the structural warranty lasts, what is covered in the first year vs the first two years, and who handles warranty claims if the builder goes out of business.
Escalation Clauses: Builders sometimes include clauses that let them raise the price if material costs go up. Read this section carefully. If you lock in a $550K price, you want that price locked, not subject to lumber price swings.
Material Substitutions: Builders reserve the right to substitute materials if their first choice is unavailable. This is standard, but make sure the contract says substitutions must be “substantially similar in quality.” I have seen builders downgrade countertops or flooring and call it equivalent.
Completion Timeline: The contract will give the builder wiggle room on the completion date — usually 30-60 days. If you need to be in the home by a specific date, negotiate a penalty clause or at least get written confirmation of the timeline. Builders who are juggling 20+ homes at once can fall behind.
Inspection Rights: Make sure you have the right to bring in an independent inspector at key stages — foundation, framing, pre-drywall, final walkthrough. Do not rely on the builder’s inspector alone. Hire your own. I have seen too many issues caught by independent inspectors that the builder’s team missed or ignored.
How to Negotiate with Builders (Yes, You Can)
Most buyers think builder prices are non-negotiable. That is not true. Builders do not like negotiating the base price because it sets comps for the neighborhood, but they will negotiate everything else.
Closing Cost Credits: Ask for $10K-$15K in closing cost assistance. Builders would rather give you credits than lower the price. Use these to cover title fees, lender fees, or prepaid taxes and insurance.
Design Center Upgrades: Negotiate additional design center credits instead of a price reduction. Ask for upgraded flooring, countertops, appliances, or built-ins. Builders have more flexibility here because upgrades cost them less than you think.
Lot Premiums: Builders charge premiums for corner lots, cul-de-sac lots, lots with views, or lots backing to green space. These premiums are negotiable. Ask them to waive or reduce the premium, especially if you are committing to significant design center upgrades.
Rate Buydowns: If rates are high, ask the builder to buy down your rate. Some builders offer 2-1 buydowns (rate drops 2% year one, 1% year two, then full rate year three) or permanent rate reductions. This can save you thousands in the first few years.
Best Timing: Builders are most willing to negotiate at year-end (November-December) when they have sales quotas to hit, or mid-summer (July-August) when inventory sits longer. If you are looking at a spec home that is already built, you have even more leverage — builders do not want to carry finished inventory.
I have seen buyers save $20K-$30K by negotiating credits, upgrades, and rate buydowns instead of pushing for a lower base price. The key is knowing what to ask for and when to ask.
Why You Need Your Own Agent When Buying New Construction
This is the part builders do not advertise: the sales rep in the model home works for the builder, not for you.
Their job is to get you to sign a contract at the highest possible price with the fewest concessions. They are friendly, they are helpful, they know the product inside and out. But their loyalty is to the builder.
When you bring your own buyer’s agent, you get someone whose fiduciary responsibility is to you. Your agent negotiates on your behalf. They know which builders have quality reputations and which ones cut corners. They attend pre-construction meetings, join you for inspections at each phase, document issues, and create punch lists to make sure the builder finishes the job right.
Your agent also knows the hidden costs — MUD taxes, HOA fees, lot premiums, upgrade pricing markups — that the builder’s rep does not volunteer. They have likely worked with the same builders before and know what is negotiable and what is not.
And here is the best part: the builder typically covers your agent’s commission. You get expert representation at no additional cost to you.
I have helped dozens of buyers navigate new construction contracts in Dripping Springs, and I can tell you the buyers who come in with their own agent get better deals. Every time. If you are serious about buying new construction, call me before you visit the model home. Once you sign in at the sales office without an agent, it is too late.
Builder Incentives in 2026: What is Actually Available
Builder incentives change constantly based on inventory levels, interest rates, and market conditions. In early 2026, here is what I am seeing across Dripping Springs and the broader Austin market:
Rate Buydowns: Builders are offering 2-1 buydowns and permanent rate reductions. Some are advertising rates as low as 4.75%-4.99% when you use their preferred lender. This is real savings — a 2-1 buydown on a $500K mortgage can save you $8K-$10K in the first two years.
Closing Cost Assistance: $10K-$15K in closing cost credits is standard right now. Some builders offer “use as you choose” credits that you can apply to closing costs, rate buydowns, or design center upgrades.
Design Center Credits: Builders are offering $5K-$15K in additional design center credits depending on the home price. Use these for flooring upgrades, countertop upgrades, built-in shelving, or upgraded appliances.
Move-In Ready Discounts: If the builder has spec homes sitting on the lot, they want them gone. I have seen discounts of $10K-$25K on move-in ready homes, plus waived lot premiums and additional closing cost credits.
The key is to ask. Builders do not advertise every incentive. Walk in with your buyer’s agent, ask what incentives are available, and negotiate from there.
School Zoning: The 2025-26 Changes You Need to Know
Dripping Springs ISD just rezoned 19 planning units to balance enrollment across campuses. The changes take effect for the 2025-26 school year, and they directly impact new construction buyers.
Why the changes: DSISD enrollment hit 8,900 students in 2024-25, which exceeded the 8,850 capacity limit. Dripping Springs Elementary and Walnut Springs Elementary were overcrowded, so the district built Elementary School #6 in Headwaters and rezoned to balance the load.
What this means for new construction buyers: If you are buying in Headwaters, your kids will attend the brand new Elementary #6 onsite. If you are buying in Double L Ranch, your kids will attend Dripping Springs Elementary onsite. Other communities may be rezoned depending on the phase and location.
Future changes: If a new high school gets built (pending bond approval), DSISD will rezone for the 2028-29 school year. The new high school would be in east Dripping Springs off Darden Hill Road.
Check the DSISD attendance zone maps before you buy. School zones matter, especially if you have kids entering elementary or middle school in the next few years.
Final Take: Is New Construction in Dripping Springs Worth It?
It depends on what you value and how you run the numbers.
If you want a brand new home with modern finishes, energy-efficient systems, and a builder warranty, new construction makes sense. If you want resort-style amenities and walkable trails, communities like Headwaters and Caliterra deliver.
But if you are purely focused on value and total cost of ownership, you need to compare new construction with MUD taxes to resale homes in established neighborhoods. Sometimes a 5-year-old home in Belterra or an older Dripping Springs neighborhood saves you $300-$500/month with no MUD and lower property taxes.
The builders in Dripping Springs right now — Meritage, M/I Homes, Tri Pointe, David Weekley, Drees, Toll Brothers — are mostly solid. They build quality homes. The question is whether you are willing to pay the MUD premium for 20-30 years to get that brand new house.
If you are serious about buying new construction in Dripping Springs, do this: get pre-approved, hire your own buyer’s agent before you visit model homes, compare total monthly payments to resale options, negotiate closing cost credits and design upgrades, and hire an independent inspector at every phase.
And if you want someone who knows the builders, the neighborhoods, and the MUD districts inside and out, reach out to me. I have been doing this since 2009, and I will walk you through every step.
Dripping Springs is growing fast. With 8,000+ lots permitted and massive communities like Double L Ranch and Wild Ridge coming online, you have more options than ever. Just make sure you pick the right one.
Looking for more insight into Dripping Springs real estate? Check out our guides on moving to Dripping Springs, the best neighborhoods in Dripping Springs, and the true cost of living in Bee Cave, Lakeway, and Dripping Springs.
