Ed Neuhaus 
If you’re thinking about moving to Lakeway, Texas in 2026, you’re not alone. I’ve been in Austin real estate for over 15 years, and I’ve never seen this level of interest from out-of-state buyers. The reasons are straightforward: lake lifestyle, excellent schools, no state income tax, and a housing market that finally favors buyers.
This guide is for you if you’re relocating from California, the Northeast, or anywhere else and want the real story. Not the glossy brochure version. The insider take on what Lakeway actually offers, what it costs, and whether it fits your life.
Let’s get into it.
Why Lakeway is Drawing Out-of-State Buyers in 2026
Lakeway sits on the south shore of Lake Travis, about 20 miles west of downtown Austin. It’s Hill Country living with lake access and a direct line to Austin’s booming tech economy.
Here’s the quick pitch:
- Lake Travis at your doorstep. Boating, fishing, paddleboarding, sunset views. This isn’t a drive-to-the-lake situation. You live on it.
- A-rated schools. Lake Travis ISD earned an “A” from the Texas Education Agency in 2025. More on that below.
- No state income tax. Texas is one of seven states with zero state income tax. For high earners, the savings are significant.
- Buyer’s market. Homes are sitting longer, inventory is up, and you have negotiating leverage.
- 30-40 minutes to Austin. Close enough for work. Far enough to escape the congestion.
For families and professionals who want space, quality of life, and proximity to opportunity, Lakeway checks the boxes.
Lakeway Real Estate: 2026 Market Snapshot
Let’s talk numbers.
The median home price in Lakeway hovers around $725,000. That’s not cheap. But context matters.
For that price, you’re typically getting 2,500 to 3,500 square feet on a quarter-acre lot in a well-maintained neighborhood. Many homes include community amenities like pools, trails, and lake access. In western Lakeway, you can find newer construction in the mid-$600s. Along the waterfront, expect $1 million and up.
The market has shifted in buyers’ favor. Homes are averaging 113 to 126 days on market. Inventory is up 7% year-over-year. Sellers are negotiating. If you’re coming from a competitive coastal market, this is a different game.
New construction is active. The median price for new builds runs around $776,000, with over 2,000 floor plans available across the area. Builders like Drees Custom Homes and David Weekley are delivering homes in communities like Rough Hollow and Thomas Ranch.
Here’s the comparison that matters: Austin-area home prices are roughly 67% lower than San Mateo County, California. If you’re selling a Bay Area home, your purchasing power here is substantial.
According to the Texas Real Estate Research Center, the statewide market is expected to stabilize through mid-2026, with buyer-friendly conditions persisting into the year.
Texas Tax Advantages: The Real Savings for Relocators
This is the section that gets people’s attention. Let’s do the real math.
Texas has no state income tax. Zero. That includes wages, salaries, capital gains, retirement income, and investment income.
Compare that to California, where state income tax can reach 13.3% for high earners. Here’s what that looks like in practice:
- $100,000 income: Save approximately $6,600 per year moving from California to Texas.
- $200,000 income: Save approximately $17,000 per year.
- Family earning $100,000: That’s $5,000 to $8,000 back in your pocket annually.
Over a decade, we’re talking six figures in savings. That’s not speculation. That’s straightforward tax math.
Now, the catch. Texas property taxes run higher than many states. The average effective rate is around 2.18%. On a $725,000 home, that’s roughly $15,800 per year. It’s real money.
But for most relocators, especially those coming from high-income-tax states, the net savings remain substantial. Run your own numbers, but the math usually works.
The migration data backs this up. According to StorageCafe, over 102,000 Californians moved to Texas in 2023 alone. Texas is the top destination for domestic relocation in the country. And the movers aren’t random: 92% of those relocating from Santa Clara County to the Austin area hold at least a bachelor’s degree. These are tech professionals, engineers, and executives making calculated moves.
Lake Travis ISD: Why Families Choose Lakeway
Schools drive decisions for families. Lake Travis ISD delivers.
The district earned an “A” rating from the Texas Education Agency in the 2025 State Accountability System. That’s the top tier.
The numbers tell the story:
- 97.7% graduation rate
- 0.9% dropout rate
- Average SAT: 1154
- Average ACT: 25.4
- 11 schools serving 11,272 students
Lake Travis High School consistently ranks among the best public high schools in Texas for college readiness. The district has strong programs in academics, athletics, and arts.
Here’s what the rating doesn’t capture: community investment. Lakeway families prioritize education. You see it in bond elections, booster clubs, and parent involvement. The schools reflect the community.
For families relocating with kids, this is often the deciding factor.
Living the Lake Travis Lifestyle
This is where Lakeway separates from typical suburbs. The lifestyle is the product.
On the Water
Lake Travis is a 63-mile reservoir with over 270 miles of shoreline. Residents have access to marinas, boat launches, and waterfront parks. Communities like Rough Hollow include a private Yacht Club and Marina with boat slips, paddleboards, kayaks, and a waterfront restaurant.
Weekend mornings on the lake. Evening cruises watching the sunset over the Hill Country. It’s not a vacation. It’s Tuesday.
On Land
Golf is big here. The new Loraloma course at Thomas Ranch opened in October 2025 as part of a 2,200-acre master-planned community. Lakeway has multiple courses within minutes. Tennis and pickleball courts are standard in most communities. Hiking and biking trails wind through the hills.
Community Feel
Lakeway has about 19,000 residents. It’s small enough to know your neighbors. The median age is 50, so you’ll find a mix of families and empty-nesters. Community events, local restaurants, and the Lakeway Resort and Spa anchor the social scene.
Master-Planned Communities
The options cater to different lifestyles:
- Rough Hollow: Highland Village amenity center with three pools, a lazy river, sports courts, fitness center, and dog park. Direct lake access.
- Thomas Ranch: 2,200 acres with a new golf course and homes starting in 2025. More rural feel with resort-style amenities.
- The Summit at Lakeway: Active adult 55+ community with clubhouse, pools, and social calendar.
Austin Access
When you want urban amenities, Austin is 30-40 minutes away. Restaurants, concerts, South Congress, the Domain. You’re not isolated. You just don’t have to deal with it daily.
Getting Around: Commute Times and Transportation
Let’s be direct: Lakeway is car-dependent.
The commute to downtown Austin runs 30 to 40 minutes via Highway 71 and 620. That’s comparable to commuting from Leander, Georgetown, or Cedar Park. During rush hour, add time.
Public transit is minimal. The CARTS bus service exists but isn’t practical for daily commuting. If you need to be downtown five days a week, Lakeway may not be ideal.
That said, remote and hybrid work have changed the equation. Many tech professionals moving to Lakeway work from home three to four days a week. One or two commute days is manageable. The lifestyle trade-off is worth it.
If your job is in the Domain, northwest Austin, or the tech corridor along 183, the commute is easier. Lakeway sits on the west side of the metro, so destinations west and northwest are quicker.
What’s New in Lakeway: 2026 Developments
Lakeway continues to invest in infrastructure and growth.
Google Fiber began construction in late 2025 following city council approval. High-speed fiber internet service should be available to residents soon. For remote workers, this is a significant upgrade.
Thomas Ranch is in active development. The Loraloma golf course opened in October 2025, with home construction underway since August 2025. This is one of the largest new communities in the area at 2,200 acres.
The city’s Development Projects page lists ongoing projects including Lakeway Highlands, Lakeway Medical Center, The Oaks, and Tuscan Village.
The FY2026 city budget was approved in September 2025 with continued investment in roads, parks, and city services. Property tax rates increased 5.2%, but remain low compared to most Texas cities.
Cost of Living: What to Expect Beyond the Mortgage
Housing is the big expense. Beyond that, Lakeway is reasonable.
The overall cost of living index sits around 125, where 100 is the national average. That’s 25% above average, driven almost entirely by housing costs.
The good news: groceries and utilities run below state and national averages. Day-to-day expenses are manageable.
Compared to Austin proper, Lakeway runs slightly higher on housing but offers more space, better schools, and lake access. For many families, the trade-off is obvious.
The real calculation: combine lower housing costs versus coastal markets, zero state income tax, and reasonable daily expenses. For most relocators, the total cost of living in Lakeway beats what they’re leaving behind.
Is Lakeway the Right Move for You?
Moving to Lakeway, Texas in 2026 makes sense for a specific buyer profile.
Lakeway is ideal if you:
- Want lake lifestyle with outdoor recreation built into daily life
- Prioritize top-rated public schools for your kids
- Work remotely or have a flexible hybrid schedule
- Are relocating from a high-tax state and want to keep more income
- Value community feel over urban density
Lakeway may not fit if you:
- Need to commute downtown daily
- Prefer walkable urban neighborhoods with nightlife
- Want the lowest possible housing costs in the Austin area
Here’s what I tell clients considering the move: visit first. Spend a weekend. Drive the neighborhoods. Have breakfast at a local spot. Walk around Rough Hollow or Lakeway Town Center. The feel of a place matters as much as the data.
The 2026 market gives you time and leverage. Inventory is available. Sellers are motivated. Rates may continue to ease. If Lakeway fits your life, the timing is favorable.
Ready to explore Lakeway? I’ve helped dozens of out-of-state buyers find the right home in this market. Let’s talk about what you’re looking for.
