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Cottonwood Shores, TX Real Estate

Cottonwood Shores sits quietly on the north shore of Lake LBJ in Burnet County, tucked into the Texas Hill Country between Marble Falls and Granite Shoals. It is a small, incorporated city with genuine lakeside character, the kind of place where buyers come looking for a lot to build on, a weekend retreat, or a permanent home away from the Austin metro's pace. The area draws people who want Hill Country scenery, lake access, and proximity to the shops, restaurants, and services of Marble Falls without living in a larger city. Marble Falls ISD serves the community, giving residents a connection to one of the stronger school systems in the Highland Lakes region. Neighborhoods | Schools | Market Overview | Getting Around | Lifestyle | FAQs

$297,000 Median Price
100 Avg Days on Market
6 Active Listings
5.1 Months of Inventory
For Sale For Rent Land Farms & Ranches
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Recent Sales in This Area

2 bed, 1 bath, residential lease at 723 Pecan LN, Cottonwood Shores TX 78657, Cottonwood Shores TX Off Market
Sold Apr 2025
2 bd 1 ba 1,027 sqft
723 Pecan LN, Cottonwood Shores TX 78657 Cottonwood Shores, TX 78657
3 bed, 2 bath, residential at 643 Magnolia LN, Cottonwood Shores TX 78657, Cottonwood Shores TX Off Market
Sold Jan 2023
3 bd 2 ba 1,563 sqft
643 Magnolia LN, Cottonwood Shores TX 78657 Cottonwood Shores, TX 78657
4 bed, 3 bath, residential at 855 Cypress LN, Cottonwood Shores TX 78657, Cottonwood Shores TX Off Market
Sold Dec 2022
4 bd 3 ba 2,125 sqft
855 Cypress LN, Cottonwood Shores TX 78657 Cottonwood Shores, TX 78657
3 bed, 3 bath, residential at 875 Pine LN, Cottonwood Shores TX 78657, Cottonwood Shores TX Off Market
Sold Dec 2022
3 bd 3 ba 1,950 sqft
875 Pine LN, Cottonwood Shores TX 78657 Cottonwood Shores, TX 78657
3 bed, 2 bath, residential at 877 Pine LN, Cottonwood Shores TX 78657, Cottonwood Shores TX Off Market
Sold Dec 2022
3 bd 2 ba 1,670 sqft
877 Pine LN, Cottonwood Shores TX 78657 Cottonwood Shores, TX 78657

About Cottonwood Shores, TX Real Estate

Neighborhoods and Subdivisions in Cottonwood Shores

Cottonwood Shores is made up of several distinct subdivisions, each with its own character. Scarlet Oaks offers wooded residential lots with the kind of canopy coverage that makes Hill Country properties feel secluded even when neighbors are close. Castle Terrace sits at a higher price point with larger, more developed parcels that appeal to buyers thinking about custom builds or established homes on generous lots. For buyers looking at the upper end of the market in this area, Castle Mountain Estates represents some of the most substantial properties in the city, with acreage and views that justify the premium.

Driftwood and Yellowstone are among the more active subdivisions for land buyers, with lots at accessible price points that attract people who want to own a piece of the Hill Country without committing to full construction costs immediately. Bluff View rounds out the options for buyers who want elevated terrain and long sightlines. Across all these areas, the inventory skews heavily toward land rather than move-in-ready homes, which shapes what kind of buyer tends to show up here. If you are planning to build, Cottonwood Shores offers meaningful options at various budget levels.

Schools in Cottonwood Shores

Cottonwood Shores is served entirely by Marble Falls ISD, one of the more well-regarded school districts in the Highland Lakes corridor. Elementary students attend Colt Elementary, Marble Falls Elementary, or Spicewood Elementary depending on their address. Both middle school and high school students attend Marble Falls campuses, keeping the school community tightly connected through those years.

Marble Falls High School has a strong reputation in the region, particularly for its career and technical programs and its extracurricular offerings. For families relocating from larger metro areas, Marble Falls ISD often comes as a pleasant surprise. Class sizes tend to be smaller, and the relationship between schools and community runs deeper than what you typically find in a suburban district. The district's presence is one reason buyers in Cottonwood Shores who are planning a permanent residence feel confident about putting down roots here.

Real Estate Market Overview

The Cottonwood Shores market is unusual compared to most small Texas cities because land transactions drive a significant portion of the activity. Buyers here are often making longer-horizon decisions, purchasing lots now with plans to build later, whether that is a retirement home, a lake getaway, or a primary residence they want to design from scratch. Residential sales do happen, but they represent a much smaller slice of what changes hands.

Because of this split, Cottonwood Shores attracts two distinct types of buyers. The first is the land investor or future builder who wants Hill Country acreage near water at a more accessible price than lakefront communities command. The second is the buyer ready to commit to a finished home and drawn by the quiet, the views, and the proximity to Marble Falls without paying Marble Falls prices. Both types find options here, though patience is part of the process given the size of the market. Austin area homes for sale run the full spectrum from urban condos to Hill Country estates, and Cottonwood Shores sits firmly at the rural, land-focused end of that range.

Getting Around Cottonwood Shores

Cottonwood Shores is accessible via RR 2147 and sits just off US-281, which is the main corridor connecting the Highland Lakes towns from Marble Falls north toward Burnet. The drive into downtown Marble Falls runs only a few minutes, putting grocery stores, hardware stores, restaurants, and medical offices within easy reach without requiring a major commute.

Austin is roughly an hour away via US-281 south to TX-71, making Cottonwood Shores a realistic option for buyers who work remotely or commute only a few days per week. The drive to the Domain or North Austin tech corridor runs longer, closer to 75 to 90 minutes depending on traffic. Buyers who prioritize daily Austin access tend to look further down the corridor in Marble Falls or Granite Shoals, while those who want Hill Country life with occasional trips to the city find Cottonwood Shores distance quite workable. Burnet to the north is about 15 minutes and offers additional services, a hospital, and a regional airport used for small aircraft.

Life in Cottonwood Shores

The appeal of Cottonwood Shores comes down to what the Highland Lakes region does best: scenery, water, and a slower pace. Lake LBJ is one of the constant-level lakes in the Highland Lakes chain, meaning water levels stay consistent year-round unlike some of the other area lakes. That reliability makes it a preferred destination for boating, fishing, and waterfront living in general. Properties near the lake command a premium, and buyers who want true water access typically spend more, but even interior lots in Cottonwood Shores benefit from the lake being close enough to use regularly.

The surrounding Hill Country landscape adds to the draw. Live oaks, granite outcroppings, and long views define the terrain. Wildlife is common, deer especially, and the low density of the area keeps the natural character intact. For day-to-day needs, Marble Falls functions as the practical hub, with its growing restaurant scene, local breweries, and a HEB that anchors the grocery situation for much of the region. Nearby Highland Haven and Meadowlakes are comparable small communities worth considering if Cottonwood Shores listings do not match what you are looking for on a given visit to the market.

Neuhaus Realty Group works extensively in the Highland Lakes corridor and understands the nuances of buying land and building custom homes in this part of Burnet County. If you are evaluating Cottonwood Shores, whether for a lot, a finished home, or a future build site, we can help you read the market and make a confident decision.

Frequently Asked Questions

What school district serves Cottonwood Shores?
Cottonwood Shores is served by Marble Falls ISD. Elementary students attend Colt Elementary, Marble Falls Elementary, or Spicewood Elementary depending on their specific address. Middle school and high school students attend Marble Falls campuses, which are known for strong programs and a close-knit school community throughout the Highland Lakes region.
How far is Cottonwood Shores from Austin?
Cottonwood Shores sits roughly an hour from Austin via US-281 south to TX-71, though the drive can stretch closer to 75 to 90 minutes during peak traffic when heading toward central or north Austin. It is a realistic commute for remote workers or those in the office two to three days per week. Buyers who need daily Austin access sometimes look at Marble Falls or communities closer to Spicewood as alternatives.
Is most of the real estate in Cottonwood Shores land or homes?
Land makes up the majority of active listings in Cottonwood Shores. The market draws a significant number of buyers purchasing lots for future custom builds, whether as retirement plans, lake retreats, or permanent residences. Finished homes do come available, but buyers looking for move-in-ready properties will find a smaller pool to work with than in nearby Marble Falls or Granite Shoals.
What are the most established neighborhoods in Cottonwood Shores?
Castle Terrace and Castle Mountain Estates represent some of the more developed and higher-value sections of the city. Scarlet Oaks offers wooded residential character, while Driftwood and Yellowstone attract buyers focused on land acquisition at more accessible price points.
Is Cottonwood Shores on Lake LBJ?
Yes, Cottonwood Shores is situated on the north shore of Lake LBJ in Burnet County. Lake LBJ is a constant-level lake, which means water levels remain stable year-round. That consistency makes it one of the more reliable lakes in the Highland Lakes chain for waterfront living and recreational use.
What are property taxes like in Cottonwood Shores?
Cottonwood Shores is in Burnet County, where property tax rates typically fall in the range of approximately 1.6 to 1.9 percent of assessed value, depending on the applicable taxing entities for a given parcel. Burnet County rates are generally lower than Travis County, which is one of the financial advantages of buying in the Highland Lakes area compared to properties closer to Austin.
What nearby cities should I also consider when looking at Cottonwood Shores?
Marble Falls is the closest city with significant amenities and a more active residential market. Granite Shoals and Highland Haven are comparable small lake communities worth visiting on the same trip. Burnet to the north offers additional services and a slightly larger city feel while remaining firmly in Hill Country territory.
Are there HOAs in Cottonwood Shores subdivisions?
HOA presence and fees vary by subdivision. Some of the established sections like Castle Terrace may have deed restrictions or maintenance agreements tied to common areas, while other parts of Cottonwood Shores have minimal to no HOA involvement. Buyers should verify HOA status, fees, and any deed restrictions for a specific lot or home before making an offer, as the terms can differ significantly from one subdivision to the next.
Ed Neuhaus, Austin Realtor

Ed Neuhaus

Broker / Owner, Neuhaus Realty Group · TREC #593057

Licensed Texas Realtor since 2007 serving Austin and the Hill Country. Investor, STR operator, and straight-talking advisor for buyers, sellers, and investors. 16 five-star reviews.

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Listing data provided by ACTRIS MLS. Information deemed reliable but not guaranteed. © 2026 Austin Central Texas Realty Information Service.

Ed Neuhaus

Austin Real Estate Broker, Investor, and Pilot. Helping Texans buy, sell, and invest in real estate since 2007.

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