Neighborhoods in Austin Set to Take Off in 2025

Austin's dynamic growth continues to reshape its urban and suburban landscapes. As the city evolves, several neighborhoods and surrounding areas are emerging as prime spots for homebuyers, investors, and Austin home renters alike. Whether you're seeking new construction opportunities within city limits or exploring the burgeoning suburbs, 2025 presents a wealth of options. Here's a comprehensive look at the neighborhoods poised for significant growth in the coming year.​

Southeast Austin: Easton Park and Surrounding Areas

Southeast Austin stands out as one of the last areas within city limits offering new construction opportunities. Easton Park, a 2,700-acre master-planned community just 12 miles from downtown, exemplifies this growth. Easton Park celebrates Austin's vibrant culture with amenities like miles of trails, parks, pools, a fitness center, and a community center hosting events such as live music and food trucks. The community offers diverse home styles and an on-site elementary school, making it an ideal choice for modern living.​

The Easton Park area is being actively developed, offering innovative single-family homes on 34-foot homesites in the Nelson Village section. With a focus on design, choice, and service, these homes provide residents with a blend of urban convenience and suburban charm.​

Taylor: The Samsung Effect

Taylor is undergoing a transformation, thanks in part to Samsung's $17 billion semiconductor facility. This development is expected to bring over 4,500 jobs to the area, spurring demand for housing and infrastructure. The city's blend of historic charm and modern amenities makes it a compelling choice for new residents.​

The influx of workers and associated businesses is leading to a tight housing market, with occupancy rates reaching 96%. This surge in demand is prompting further development, including a 150-acre site adjacent to the Samsung plant being marketed for manufacturing, office, logistics, and other uses.

Hutto: Rapid Growth and Development

Hutto's population has surged from 28,000 in 2019 to over 42,000 in 2024, with projections reaching 60,000 by 2029. Developments like "The Gateway at Hutto," a 257-acre mixed-use project, are set to accommodate this growth, offering a mix of residential, commercial, and recreational spaces. The project includes multifamily units, townhomes, and open spaces, aiming to revitalize the city and provide much-needed housing options.

Georgetown: Balancing Charm and Expansion

Georgetown has become one of the fastest-growing cities in the U.S., ranking 18th among the most desirable suburbs to move to in 2025. New developments, such as the proposed 362-acre mixed-use community in the city's extraterritorial jurisdiction, aim to provide diverse housing options while preserving the area's historic appeal.

Patterson Ranch, a master-planned community, is expanding with its third phase of single-family homes. This development caters to the influx of people moving to Williamson County due to booming international businesses, including Samsung's chip plant and Tesla suppliers.

The Tesla Campus Corridor: Austin’s Next Innovation Hub

With Tesla’s Gigafactory firmly established in Del Valle, the surrounding area is quickly transforming into one of Austin’s most promising regions for growth. The corridor near Tesla’s campus, stretching along State Highway 130 and FM 973, is poised to become a hotspot for both residential and commercial development. Recent announcements, like Presidium’s 202-acre mixed-use project, signal a wave of urbanization driven by tech giants like Tesla, X (formerly Twitter), and SpaceX.

Originally named the Velocity, now called the Row, offers those seeking proximity to Austin’s booming tech scene while still enjoying more affordable prices than central neighborhoods. Easy highway access, future-forward development plans, and job opportunities make this one of the best areas to watch in 2025. 

Manor: Affordable Living with Big Plans

Manor is attracting attention with projects like the 324-unit affordable housing development. Additionally, the city's plans for a new city hall and library as part of a larger mixed-use development signal a commitment to growth and community enhancement. Affordable housing options, such as Manor Town Apartments and Manor Town II, are also expanding to accommodate the growing population.​

Elgin: Embracing Growth

Elgin's housing market is on the rise, with the city council approving plans for over 750 new homes in the Southside Meadows community. The city's affordability and small-town charm make it an appealing option for those seeking a quieter lifestyle within reach of Austin. New construction homes in Elgin have a median listing price of $309,900, with 331 new construction homes currently available. 

Buda & Kyle: Expanding Suburban Appeal

Buda and Kyle continue to attract families and professionals with developments like the 775-acre Persimmon community in Buda, featuring 2,100 new homes and resort-style amenities. These suburbs offer a blend of modern living and accessibility to Austin, making them prime locations for growth.​

In Kyle, master-planned communities provide residents with gorgeous home designs from award-winning builders, extensive amenities, and a lifestyle centered around relaxation and community. These developments cater to the increasing demand for suburban living with easy access to Austin's urban core.​

East Austin: Cultural Hub Meets Rapid Growth

East Austin continues to be one of the city's most dynamic and fast-changing neighborhoods. Once known primarily for its deep cultural roots and eclectic charm, the area has evolved into a hotspot for new developments, modern housing, and creative energy. Proximity to downtown, local coffee shops, art galleries, and tech startups make East Austin a magnet for young professionals, artists, and entrepreneurs alike. As the city expands eastward, mixed-use developments and transit-friendly living have increased, bringing new housing inventory to meet growing demand.

With major investments flowing into the area, East Austin now boasts several new condo buildings, boutique hotels, and adaptive reuse projects. Popular streets like East 6th and Cesar Chavez have become go-to destinations for nightlife and dining, while green spaces and bike trails offer a break from the city pace. Despite its growth, East Austin still celebrates its diverse roots, making it one of the most unique and desirable neighborhoods for homebuyers in 2025.

Highland: From Mall to Mixed-Use Marvel

Once home to Highland Mall, this North Central Austin neighborhood is now one of the city’s most promising redevelopment stories. With the Austin Community College Highland Campus leading the charge, Highland has transformed into a mixed-use, transit-oriented hub filled with new apartments, retail, and office space. Its central location and access to the MetroRail make it especially appealing to students, professionals, and first-time buyers seeking value close to downtown.

Developers continue to invest heavily in Highland, with new residential communities and commercial projects breaking ground throughout 2025. As one of the more affordable central Austin neighborhoods, Highland offers opportunity for buyers priced out of other areas. With walkability increasing and a strong public transit backbone, this former mall district is quickly becoming a forward-thinking urban neighborhood with a lot of upside.

East Riverside: Urban Growth on the Rise

East Riverside is in the midst of a dramatic transformation, evolving from a student-heavy rental corridor into one of the city’s most ambitious mixed-use growth zones. Located just minutes from downtown and the airport, the area now features large-scale developments like the East Riverside Gateway, a project delivering more than 1 million square feet of office and retail space. A new music venue and expansive green spaces are also reshaping the neighborhood into a major cultural and economic hub.

With its affordable condos, luxury apartments, and riverfront potential, East Riverside is attracting both first-time homebuyers and long-term investors. As more companies look east for expansion, this neighborhood is poised to be a central player in Austin’s next wave of growth. The balance of access, affordability, and lifestyle makes East Riverside a hot ticket for 2025 and beyond.

St. Elmo District: Industrial Roots, Creative Future

South Austin’s St. Elmo District is one of the most exciting up-and-coming areas, fueled by adaptive reuse and a bold creative spirit. Formerly dominated by warehouses and industrial spaces, the district is now home to breweries, art studios, food halls, and modern condo developments. Its gritty, artistic vibe has attracted young professionals and creatives looking for something outside the cookie-cutter suburbia.

New residential projects like The Station at St. Elmo are offering buyers resort-style amenities and modern design at prices more affordable than central Austin. The neighborhood’s location—just a short drive from downtown—adds to its appeal. With continued investment and a reputation as Austin’s next cultural frontier, the St. Elmo District is fast becoming a destination for those who want to live, work, and create in a community that’s redefining what South Austin can be.

Santa Rita Ranch: Master-Planned Living in Liberty Hill

Santa Rita Ranch, located in the scenic Hill Country of Liberty Hill, has become one of the fastest-growing and most desirable master-planned communities in the Austin metro area. Known for its thoughtfully designed neighborhoods, exceptional schools, and resort-style amenities, it consistently ranks among the top-selling communities in Texas. Homebuyers are drawn to its diverse range of homes—from affordable family-friendly models to luxury estates—and the lifestyle it offers just outside Austin’s bustle.

In 2025, the community continues to grow with new phases of development and even more community features, including splash parks, hiking trails, fitness centers, and expansive outdoor gathering spaces. On-site elementary schools and a strong sense of neighborhood connection make it ideal for families. Santa Rita Ranch blends peaceful Hill Country surroundings with access to modern conveniences, making it a standout choice for buyers looking for space, quality, and community.

Lockhart: Historic Charm with Modern Momentum

Located about 35 miles south of Austin, Lockhart is quickly emerging as one of Central Texas’s most exciting small towns for residential and commercial development. Long celebrated for its barbecue and historic downtown, the city is now attracting attention for its affordability, strategic location along SH-130, and new housing inventory. Communities like Firefly and large master-planned developments are introducing a variety of modern housing options, from build-to-rent neighborhoods to factory-built homes.

In addition to housing, Lockhart is seeing commercial growth that includes neighborhood shopping centers and industrial park expansions—bringing jobs and infrastructure to the area. Its small-town charm, paired with a growing list of urban amenities, is turning Lockhart into a smart choice for those priced out of Austin or seeking a quieter pace of life without giving up modern conveniences. For buyers in 2025, Lockhart offers the rare opportunity to invest in an area that still feels authentic, yet full of future potential.

Where to Watch in 2025

As Austin continues to expand in every direction, buyers and investors have more exciting opportunities than ever before. From master-planned communities like Santa Rita Ranch to the creative revival of East Riverside and St. Elmo, each neighborhood brings something unique to the table—whether it's affordability, luxury, location, or lifestyle. Whether you're looking to build, invest, or settle into a growing community, these Austin neighborhoods and suburbs are set to take off in 2025.

If you're ready to explore homes for sale in these up-and-coming areas, the team at Pauly Presley Realty is here to help. Contact us today to schedule a personalized tour or consultation, and discover where your future in Austin begins.