Austin’s transition into a buyer’s market has revealed certain pockets where homes are much more likely to sell faster than others. A new real estate report from Redfin details which local neighborhoods have the most competition among homebuyers in Austin.

The report’s findings show that the five hottest neighborhoods in Austin all reside in highly regarded school districts, have new restaurant openings, and offer an increase in retail establishments to draw residents in.

The No. 1 hottest neighborhood in the report is Tanglewood Forest, a South Austin neighborhood in the 78748 ZIP Code that boasts homes mostly built in the 1970s and ’80s, Redfin says. This neighborhood spreads north and south of Slaughter Lane in between West Gate Blvd. and Menchaca Rd., and has “quick access” to both MoPac and I-35.

Redfin Austin sales manager Scott Gustafson said properties on the market in Tanglewood Forest offer “a little more breathing room” than other neighborhoods, while being within close proximity to downtown.

“You can enjoy a larger lot and the ability to own a single-family home versus a condo,” Gustafson said. “Homes are more traditional Texas style and buyers are usually looking for a ranch house.”

Listings in Tanglewood Forest have a median sale price of $405,000, which is five percent cheaper than a year ago. Homes in this neighborhood are also $10,000 more affordable than a home in the Austin metro by median sale price. About 20 percent of homes in the area sold at above their list price, Redfin reported.

Two North Austin suburban communities are the No. 2 and No. 3 hottest neighborhoods in the city: Buttercup Creek in Cedar Park (78613) and Behrens Ranch in Round Rock (78681). Buttercup Creek has a reputation for its newer construction homes, whereas Behrens Ranch homes were built in the early 2000s and may be recently renovated.

Listings in both neighborhoods have relatively high median sale prices compared to homes in the Austin metro area. Buttercup Creek homes have a median sale price of $492,500, and Behrens Ranch homes sell for $489,000. Buyers in both areas also tend to work in tech or in the medical field, according to Redfin Premier agent Barb Cooper.

Milwood in 78727 and Johnston Terrace in 78721, in order, round out the top five hottest neighborhoods of 2026.

Here is the full dataset from Redfin’s report:

Rank Neighborhood Zip Code Median Sale Price Median Sale Price (YoY) Median Days on Market Share of Homes Sold Above List Price 1. Tanglewood Forest 78748 $405,000 -5 percent 53 20 percent 2. Buttercup Creek 78613 $492,500 2 percent 49 14 percent 3. Behrens Ranch 78681 $489,000 -2 percent 46 13 percent 4. Milwood 78727 $498,500 -2.2 percent 43 18 percent 5. Johnston Terrace 78721 $492,500 -6 percent 67.5 13 percent
Austin metro area
$415,000 -6 percent 74 11 percent

To locate where the five hottest neighborhoods in Austin are, analysts found ZIP Codes that recorded at least 50 home sales from July 1 to August 31. Then they looked at year-over-year growth in those area’s listing views for homes on Redfin and the “Redfin Compete Score,” which measured “how difficult it is to win a home in a particular area based on factors including days on market, share of homes that sold above their listing prices, and sale-to-list price ratio.”