Ed Neuhaus 
New construction is quietly outperforming resale in Austin right now, and most buyers don’t realize it. The Activity Index for new builds is 27.80% compared to 16.38% for resale. New build buyers averaged 5.27% mortgage rates in Q3 2025 compared to 6.26% for existing home buyers. That’s a full percentage point difference, and it translates to hundreds of dollars per month on your payment.
So why are builders offering better rates? Because they have inventory to move and they can afford to buy down rates as a marketing cost. They’re also offering closing cost credits, free upgrades, and flex dollars up to 10% of the base price. If you’re shopping in West Austin right now and you haven’t looked at new construction, you’re leaving money on the table.
Travis Club: The Luxury Story of 2026
This is the development everyone in the West Austin luxury market is watching. Travis Club sits on 1,500 acres along Lake Travis in Spicewood with a Beau Welling-designed championship golf course opening mid-2026, a private marina, and homesites ranging from $700K to $3.4M.
The scale of this project is unusual for West Austin. Most luxury communities here are 50-200 homes. Travis Club is building a full resort-style community with the kind of amenity package that usually only exists in Scottsdale or Jupiter, Florida. The golf course alone is a draw. The marina access to Lake Travis makes it unique in the Austin market.
For buyers in the $1M-$3M+ range, Travis Club is worth a serious look. The pre-construction pricing gives you leverage that won’t exist once the golf course opens and the community matures. More on the broader Lake Travis and Lakeway market for context.
The Overlook at Westlake: Eanes ISD New Construction
New construction in Eanes ISD is extremely rare because the land is mostly built out. That’s what makes The Overlook at Westlake significant: 48 new luxury homes by MileStone Community Builders, priced from $2.85M to $5M, with move-ins expected late 2026.
If you want new construction AND the #1 school district in Texas, this is essentially your only option in 2026. The premium is real, but so is the scarcity. For the full Westlake Hills and Rollingwood market analysis, that article covers the broader context.
Dripping Springs: Where Most of the Action Is
Dripping Springs is the epicenter of West Austin new construction, and there’s a reason: the wastewater infrastructure issues that constrained growth for a decade have finally been resolved. That legal dispute is over, the infrastructure is getting built, and the result is a wave of new communities coming online.
Caliterra Ranch Phase 2: $40M investment, opening December 2026. This is the expansion of an already established community that’s proven the Dripping Springs market. Caliterra has been one of the most successful communities in the area, and Phase 2 brings more homesites online.
Headwaters: $450K to $1.5M with builders including Ashton Woods, David Weekley, Taylor Morrison, and Toll Brothers. The price range here is wide enough to accommodate everything from first-time luxury buyers to custom estate homes. Headwaters sits along Barton Creek with strong community amenities.
Big Sky Ranch: Approximately 700 homes by Meritage near downtown Dripping Springs. This is the more accessible price point for families who want Dripping Springs ISD schools without the custom home budget. Big Sky Ranch is positioned for the young family demographic that’s driving Dripping Springs growth.
Double L Ranch: 1,600 acres with 2,200+ planned homes. This is one of the largest master-planned communities coming to the Dripping Springs area and will reshape the landscape over the next several years.
Wild Ridge: 900+ homes planned, adding to the pipeline of available inventory in the Dripping Springs corridor.
For the full Dripping Springs story including what’s driving the growth, see my dedicated Dripping Springs market article and the Dripping Springs new construction guide.
Bee Cave and Lake Travis Communities
Serene Hills: 456 acres with homes ranging from $942K to $2.17M. This community bridges the gap between Bee Cave’s convenience and Lake Travis ISD schools. It’s a mid-luxury option for families who want something nicer than a production home but aren’t ready for the $3M+ Barton Creek or Spanish Oaks price point.
Provence (Bee Cave): Ashton Woods is building in Lake Travis ISD, targeting the family buyer who wants Bee Cave’s location and retail access with new construction quality. For the broader Bee Cave market, see my Bee Cave and Barton Creek analysis.
Austin ranked 9th nationally for new home construction in 2025, and the pipeline for West Austin specifically is deeper than it’s been in years. I wrote about a specific new construction tour in Bee Cave that gives you a feel for what builders are delivering right now.
Why New Construction Makes Sense Right Now
In a normal market, I’d tell buyers to weigh new construction against resale based on personal preference. But this isn’t a normal market. Here’s why the math currently favors new builds:
Better mortgage rates. That 5.27% vs 6.26% gap is not a gimmick. Builders have relationships with preferred lenders and they subsidize the rate as part of the purchase incentive. On a $750K home, the difference between 5.27% and 6.26% is roughly $450/month.
Closing cost credits. Most builders in West Austin are offering $10K-$25K in closing cost credits. Some are going higher. This covers a significant portion of your closing costs and reduces your cash needed at the table.
Flex dollars and upgrades. Some builders are offering flex dollars up to 10% of the base price. On a $700K home, that’s $70K in upgrades, rate buydowns, or closing costs. You can use it however you want. That’s a negotiating tool resale sellers can’t match.
No bidding wars. You walk in, you pick a lot, you negotiate from a position of strength. The builder wants to move inventory. You want a home. It’s a straightforward transaction without the emotional chaos of competing with five other offers.
Warranty. New homes come with builder warranties covering structural, mechanical, and cosmetic issues. A resale home comes with an inspection report and hope. In a market where pre-listing inspections are still not standard, the warranty matters.
The Tradeoffs
New construction isn’t perfect for everyone. The lots in production communities tend to be smaller. The landscaping is immature. You’re living in a construction zone for months or years while the community builds out. And if you’re buying in a community that’s 20% sold, your home’s resale value is somewhat dependent on how well the builder sells the remaining lots.
Custom builds on your own lot avoid some of these issues but introduce others: longer timelines, cost overruns, and the management burden of being your own general contractor (or paying someone to be). For investment-minded buyers, the calculus includes rental potential and appreciation trajectory.
How to Approach New Construction as a Buyer
Bring your own agent. Builders have model home sales reps whose job is to represent the builder, not you. Your agent negotiates on your behalf and ensures the contract terms protect you. Most builders cooperate with buyer’s agents and pay the commission. There’s no cost to you and significant benefit.
For the broader market context including where resale homes are priced and how the overall Austin market is trending, see my 2026 Austin market forecast. And if you’re trying to decide between new construction and resale, my buyer’s guide covers both sides of that decision.
Want to Tour New Communities?
Contact Ed Neuhaus at Neuhaus Realty Group. I’ll walk you through the communities that match your budget and priorities, negotiate the builder incentives, and make sure the contract protects you. Browse current inventory in Dripping Springs, Lakeway, Westlake Hills, and Spicewood.
