An affordable new-construction community in Kyle, about 19 miles south of Austin, built by D.R. Horton. New homes start in the $330,000s, and resale starts in the $230,000s, which makes this one of the easier ways into a new home in Hays County. Here is the honest local rundown, what it costs, and the two trade-offs I want you to know about going in. 175+ closings since 2016.
Southgrove is an affordable new-construction community in Kyle, about 19 miles south of Austin, built by D.R. Horton. New homes start around $337,960, and resale starts around $235,000, so there is a real range of entry points. It has a pool amenity center, sits in Hays CISD, and gives you easy access to both Austin and San Antonio. It checks a lot of boxes for a value buyer. The two things I want you to know before you go: the tax rate runs on the higher side, and builder terms have changed since I first toured it, so ask me what is current.
Walk the model home and the amenity center with me. This tour is a few years old, so treat the pricing and terms below as current, not the numbers in the video:
Southgrove is built entirely by D.R. Horton, the number-one-volume builder in the country. On my builder list they sit in the affordable, high-volume tier, and I will give it to you straight: they are not a luxury-finish builder, but they build a lot of homes at prices real families can afford, and I have sold many D.R. Horton homes with most owners happy in them. At Southgrove they offer around 16 floor plans from a little over 1,200 square feet up past 2,500 square feet, so there is a fit from a first home to a full family house. A good example is the Reagan, a 1,863-square-foot plan with four bedrooms and two baths.
Southgrove earns its keep on value. There is a nice amenity center with a pool and a playscape for the kids, and the location gives you a lot to do: Lake Kyle for fishing and trails, a golf course at Plum Creek, and parks and shopping close by, with a Costco and more retail continuing to grow in Kyle. At 19 miles south of Austin with quick highway access, you can reach Austin or San Antonio without much fuss while paying Kyle prices.
1. The tax rate is on the higher side. Plan on a combined rate in the neighborhood of 3%, which is higher than a low-tax community and will add to your monthly payment. That is common in newer Kyle communities that carry a district tax. Always confirm the certified rate for your specific lot, my MUD and PID guide shows how, and I will run your real monthly number so it is not a surprise.
2. Builder terms change with the market. When I first toured Southgrove the market was red-hot and the buying process looked very different than it does today. D.R. Horton's pricing, incentives, and how they release homes shift with conditions, so do not assume what you read online is current. Reach out and I will tell you exactly how it works right now.
Southgrove is served by Hays CISD, with children attending Camino Real Elementary, McCormick Middle School, and Johnson High School. One honest note from touring the area: the elementary and middle schools are within about five miles, but Johnson High School is roughly ten miles away, so factor that drive in if you have a high-schooler. For the wider picture, see my Kyle relocation guide and the Kyle new construction guide, and confirm the exact campus zoning for your specific lot before you offer.
D.R. Horton runs incentives here, like rate buydowns and closing-cost help, and they change often and are tied to particular homes and timelines. What matters is how a given incentive changes your actual monthly payment, not the flashiest number on the flyer. Reach out before you visit on your own and I will tell you what is current and run the payment scenarios for your budget. Contact me or call (512) 487-9242.

Kyle is one of my core markets, and new construction is most of what I do, with 175+ closings since 2016 across South Austin, Buda, Kyle, and Bastrop. I have toured Southgrove firsthand and closed plenty of D.R. Horton buyers, so I will help you pick the floor plan that fits you, run the real payment scenarios including that higher tax rate and any incentives, and stand in your corner at the model, which costs you nothing because the builder pays your agent.