Living in 78748: A Local's Honest Guide to South Austin's Hottest ZIP
Living in 78748: A Local's Honest Guide to South Austin's Hottest ZIP
Quick Answer: Living in 78748 gives you some of the best value in South Austin. The median sale price is around $425,000, compared with roughly $595,000 for the city of Austin overall. You get established neighborhoods, large lots, mature trees, low tax rates, and in many pockets, no HOA at all. The two things to plan around are older homes and a car-dependent commute.
By Brandon Holley, Broker/Owner, Holley Homes Realty
If you would rather watch than read, the full video is right above.
I have lived in 78748 for more than ten years. When my family first moved out here, it honestly felt far from everything we knew in South Austin. Today I would not trade this ZIP for any other in the city. If you have already landed on South Austin but you are stuck on where exactly to plant roots, this guide to living in 78748 is for you.
I am going to walk you through what this ZIP actually costs right now, which neighborhoods fit which buyer, and the honest trade-offs I deal with as a resident. By the end, you will know this area like you've already lived here.
What does living in 78748 cost in 2026?
As of early 2026, the median sale price in 78748 is around $425,000. That works out to roughly $216 a square foot, and homes are taking about 83 days to sell. Put that next to the city of Austin median, which sits closer to $595,000, and you start to see the value and the space this ZIP gives you.
Homes sitting a little longer also mean you have real negotiating room again. That is something buyers simply did not have a couple of years ago.
Here is a detail a lot of people do not expect. Most of 78748 falls under normal Travis County and Austin ISD tax rates, which are in the low 2% range. A lot of these neighborhoods have no HOA at all. This is not the heavy MUD and PID territory you find in the newer master-planned suburbs. If you want to see how those special district taxes work elsewhere, I break the whole thing down in a separate video and guide.
For context on how far a bigger budget stretches down here, this is also the same math behind what $600K gets you when moving from California to Austin.
Which 78748 neighborhoods should you actually look at?
These neighborhoods are genuinely different from each other, so I point buyers to different ones depending on what they want.
Neighborhood | Vibe | Typical price | Best for |
|---|---|---|---|
Shady Hollow | Settled, leafy, master planned | Mid $500s and up | Buyers who want strong schools and big trees |
Tanglewood Forest | Value tier, varied floor plans | $400s | Buyers who want the best entry price |
Estates at Bauerle Ranch | Premium, quiet, larger lots | Mid $500s to $700s | Buyers who want space and privacy |
Drew Lane and Novel | Modern new construction | Varies | Buyers who want a new build |
Shady Hollow is the anchor. It is an established, master planned area built from the late 1970s into the 1990s, with big trees, wide streets, large lots, and neighborhood pools. It is the most in-demand part of the ZIP, often in the mid $500s and up. If you want a settled and leafy spot with strong schools, this is your spot.
Tanglewood Forest is the value tier. Built mostly in the 1980s and 1990s, you can still find homes here in the $400s, with floor plans that range from small starters to over 3,000 square feet.
The Bauerle Ranch areas give you a beloved greenbelt right next door, and the Estates at Bauerle Ranch is the premium pocket. Think larger lots in the mid-$500s to $700s, tucked away with almost no through traffic.
Then you have Drew Lane and Novel, your new-construction options. The lots are tighter, but you get those modern builds. If new construction is what you are after, my breakdown of new construction homes in South Austin under $450K is a useful companion. The point is that a $600,000 budget goes a long way down here. That number moves you into the big lot, top school part of this ZIP, which is not true in a lot of Austin.
What is it actually like to live in 78748?
This is the part that surprised me the most. When we moved in, I thought we were giving up the South Austin energy. The opposite happened.
South Menchaca has become one of the most active stretches in the area. Restaurants and food trucks keep opening, there is live music, and there are plenty of places to watch sports.
Daily life is easy. You have the HEB at Tanglewood Village, Whole Foods over on Brodie Lane, and South Park Meadows for everything else. The outdoor life is real too, from the Veloway bike loop to the Lady Bird Johnson Wildflower Center to Mary Moore Searight Park, plus community pools in nearly every neighborhood.
We came for what we could afford, and we have stayed because we genuinely love it here.
If you would like to see a related video on this topic, the one above (or below) is a great next watch.
Does a 78748 ZIP code guarantee a certain school?
No, and this is the detail most agents skip. In 78748, the ZIP code tells you almost nothing about the school your child will actually attend. The Estates at Bauerle Ranch and parts of Shady Hollow feed Bowie High School, one of the strongest in Austin ISD. Other streets in the exact same ZIP feed Akins or Crockett, which test very differently.
Two houses at the same price in the same ZIP can hand your family two completely different school paths. If schools are part of your why, you do not shop the ZIP; you shop the boundary. You can confirm any address on the Austin ISD school finder, or just send me the address, and I will pull the exact assignment before you ever write an offer.
Who does living in 78748 fit best?
This ZIP is a strong fit if you want space, mature trees, and a settled feel without paying central Austin prices. It also works well if you want to avoid HOA fees and special district taxes, because a lot of these neighborhoods have neither. If you want the best value entry, look at Tanglewood Forest, Sendera, or Texas Oaks, often in the $400s to $500s, and confirm the high school before you fall in love with the home.
Who should look elsewhere: If you need to be downtown every single day and you truly hate driving, the commute may wear on you. The median drive from here runs about 28 minutes, which is on the longer side for Austin, and you will want two cars.
What are the honest trade-offs of living in 78748?
I want to be straight with you because the trade-offs are real.
A lot of these homes are older, with some neighborhoods built in the 1970s and 1980s. With that age comes the usual list, from foundation to roof to plumbing to older systems. If you buy here, get a great inspector and budget to address a few things early rather than be surprised later.
Here is the other side, and it is why so many of us stay. That age is exactly what gives you the mature tree canopy. You get big established oaks shading the streets and yards, the kind of thing you cannot buy new for 30-plus years. For a lot of people, me included, that trade-off is worth it.
The drive is the other honest piece. You are off the worst of the MoPac and I-35 traffic, but you are car dependent. If you are remote or hybrid, this is one of the best areas in the city, and it is a big part of why living in 78748 has worked so well for my own family.
Two free resources can make this decision easier. Grab my Central Texas Relocation Guide for a full walkthrough of the move. And if you are comparing 78748 to the newer suburbs, my Central Texas MUD and PID Checklist breaks down exactly how those special district taxes work so nothing surprises you at closing.
Frequently Asked Questions
Is 78748 a good place to live? Yes, especially if you want value in South Austin. The median sale price sits around $425,000, well under the city of Austin's median of roughly $595,000. You get established neighborhoods, large lots, mature trees, low tax rates, and in many pockets, no HOA. The main things to plan around are older homes and a car-dependent commute.
What is the median home price in 78748? As of early 2026, the median sale price in 78748 is around $425,000, or roughly $216 per square foot. Homes are taking about 83 days to sell, which gives buyers real negotiating room. Compared to the city of Austin, where the median price is near $595,000, this ZIP offers noticeably more space and value for the money.
Which schools serve 78748? It depends on the street, not the ZIP. The Estates at Bauerle Ranch and parts of Shady Hollow feed Bowie High School, one of the strongest in Austin ISD. Other streets in the same ZIP feed Akins or Crockett. Always confirm the exact boundary before you fall in love with a home.
Does 78748 have high MUD or PID taxes? Most of 78748 sits under normal Travis County and Austin ISD tax rates in the low two percent range, and many neighborhoods have no HOA at all. This is not the heavy MUD and PID territory common in newer master planned suburbs. Always verify the taxes and any HOA on the specific home before you write an offer.
What is the commute like from 78748? The median commute from 78748 runs about 28 minutes, which is on the longer side for Austin. The upside is you are off the worst of the MoPac and I-35 traffic. The trade-off is that the area is car-dependent, so plan on two cars. Remote and hybrid workers tend to love it here.
About the Author
Brandon Holley is the Broker and Owner of Holley Homes Realty in Austin, Texas. He works with first-time homebuyers, new construction clients, and relocation buyers moving to Central Texas from across the country. Brandon hosts a recurring segment on American Dream TV and runs the YouTube channel Your Austin Home Guide, where he breaks down communities, builders, and neighborhoods across Austin, Buda, Kyle, Bastrop, and the surrounding suburbs.
Have a question or thinking about a move to Central Texas? Reach out anytime.
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I understand now may not be the right time and I never want to be pushy, just know that I am here if you have questions, would like to start planning, or need anything.
