How Does the Cost of Living in Highland Lakes Compare to Austin

Austin’s cost of living sits at around 139.5 on the index, about 40% higher than the U.S. average. That number has plenty of Central Texans looking at nearby options that don’t come with the sticker shock. One of those options is the Highland Lakes region.

The Highland Lakes are a chain of six reservoirs along the Colorado River, stretching 45 to 75 minutes northwest of Austin. We’re talking about communities like Marble Falls, Horseshoe Bay, Granite Shoals, Kingsland, and Burnet. According to the Texas Real Estate Research Center (TRERC, 2025), this region is one of the fastest-growing in the state. Marble Falls alone functions as a retail, medical, and professional hub for more than 121,000 people.

So, can you actually save money by choosing the Highland Lakes over Austin? The short answer is yes, but the savings don’t show up evenly across the board. Some categories deliver real relief. Others are about the same. A few come with trade-offs you need to factor in. Let’s break down housing, taxes, everyday costs, healthcare, commute realities, and what lake living brings to the table. If you’re thinking about homes for sale in the Highland Lakes region, this comparison of cost of living in Highland Lakes gives you the facts to make a smart decision.

Housing: Where the Real Savings Are

Here’s the headline: Austin’s median home price is around $500,000 (Zillow / Spyglass Realty, 2025). Marble Falls sits at roughly $387,557 (Ownwell, 2025). That’s a real difference, not a rounding error.

Granite Shoals and Kingsland typically come in even lower. You’ll find solid single-family homes in those towns well below the Marble Falls median. If you want a house with room to breathe and don’t need to be on the water, the cost of living in Highland Lakes area wins on price.

Horseshoe Bay is the outlier. Median prices there run north of $450,000, and the average is closer to $700,000. Plenty of homes exceed $1 million, especially those on or near the water (TRERC, 2025). That’s Austin money, sometimes more.

Rentals tell a similar story. A one-bedroom apartment in Austin runs between $1,400 and $1,850 per month. Comparable non-waterfront rentals in the Highland Lakes come in about 20% to 35% lower. The catch is inventory. Rentals are available, but not in the same volume you’d find in Austin.

Here’s the big caveat: waterfront properties carry a premium. You can build new homes, but you can’t create new lakes. There’s a real difference between a lake-view lot, a lake-access property (shared boat ramp or dock), and true waterfront with your own shoreline. Each tier jumps in price. True waterfront on Lake LBJ can match or beat Austin prices, depending on the home.

Cost Comparison Table

Looking at waterfront homes on Lake LBJ? Expect to pay for the privilege of living on the water. Still, if you’re shopping inland or for properties with lake access rather than lake frontage, the Highland Lakes deliver meaningful savings.

Property Taxes and Everyday Costs

Texas doesn’t have a state income tax. That’s the good news. The less-good news is that property taxes fill the gap.

Marble Falls has an effective property tax rate of about 1.39%. Austin and Travis County sit closer to 1.8%. At first glance, that sounds like a win for Marble Falls. But the real question is how much you actually pay, not just what the rate is.

Let’s do the math. A $388,000 home in Marble Falls at 1.39% costs you roughly $5,393 per year in property taxes. A $500,000 home in Austin at 1.8% runs about $9,000 per year (Burnet Central Appraisal District; Travis County Tax Office, 2025). That’s a $3,607 annual difference. The tax savings come from the lower home value, not from a significantly lower rate.

Groceries, dining, and utilities are about the same. Marble Falls has H-E-B, Walmart, and most of the standard chains. According to the Bureau of Economic Analysis (2025), average grocery costs in Texas are around $343 per person per month. Prices at the store don’t really change whether you’re in Austin or Marble Falls. What does change is selection. Austin has a wider variety of specialty stores, ethnic grocers, and dining options. Marble Falls covers your everyday needs without a problem, but you won’t find the same restaurant scene or boutique markets.

Utilities run similarly statewide. Summer cooling costs in Central Texas are real no matter where you live. You’ll pay roughly the same to keep your air conditioner running in Marble Falls as you would in Austin.

So, property taxes favor the Highland Lakes because of lower home prices. Groceries, dining, and utilities? Call it a wash. The real story here is housing, not your electric bill.

Healthcare, Commute, and Trade-Offs

Every cost comparison has a “but” section. Here’s what you need to know about the cost of living in Highland Lakes beyond the price tags.

Baylor Scott & White and Ascension Seton both have facilities in the Marble Falls and Burnet area. Routine healthcare, urgent care, and basic medical services are available close by. If you need a primary care doctor, a dentist, or standard screenings, you’re covered. Insurance premiums don’t vary between Austin and the Highland Lakes.

Specialized care is a different story. Oncology, cardiology, complex surgery, and similar services send most residents back to Austin, which is 45 to 75 minutes away depending on where you live in the Highland Lakes and where you’re headed in Austin. If you or someone in your household needs regular specialist care, that drive becomes part of your routine.

The commute from Marble Falls to downtown Austin is about 50 to 60 miles. Depending on traffic and time of day, that’s 60 to 90 minutes each way. The U.S. Census (2023) reports the average commute for Burnet County residents is around 32 minutes, which tells you most people work locally or have hybrid arrangements. TRERC (2025) notes a pattern of “4 days lake, 3 days Austin” among tech professionals who’ve moved to the area. No public transit connects the Highland Lakes to Austin, so you’re driving.

If you commute five days a week, you’re looking at 100 to 120 miles round trip daily. That adds up fast in gas, wear on your vehicle, and time. If you’re hybrid and only make the trip two or three times a week, the cost is far more manageable. Car insurance rates are roughly similar statewide.

Here’s the straight talk: the commute is real. If you work in Austin full-time and in-office every day, this move might not make sense unless you’re willing to trade time behind the wheel for space and savings at home. If you’re fully remote, semi-retired, or hybrid, the trade-off becomes a lot easier to accept.

The Lifestyle Factor

Let’s shift from spreadsheets to what it feels like to live here. For a lot of people, the move isn’t just about saving money. It’s about what that money buys in quality of life.

The Highland Lakes offer a slower pace. Less traffic. Daily access to lakes for fishing, boating, swimming, and paddleboarding. Horseshoe Bay alone has four championship golf courses. There are multiple wineries in the area, Hill Country hiking trails, and parks along the water. You’re not giving up amenities. You’re trading urban density for a small-town community and outdoor recreation.

That small-town feel matters. People know their neighbors. Local events, farmers’ markets, and community gatherings have a different vibe than city life. If you value that kind of connection, the Highland Lakes deliver.

There’s also the mental health benefit. Studies on nature exposure, waterfront living, and stress reduction are clear: access to natural settings improves well-being. Waking up to water, spending time outside, and living in a quieter environment all contribute to a different kind of wealth.

The “legacy asset” angle is real, too. A lake home often becomes a place families return to for generations. It’s not just a house. It’s the place your kids learn to fish, where you host family reunions, and where grandkids spend summers. That’s harder to quantify on a cost-of-living chart, but it matters.

If you’re interested in what lake living looks like day to day, check out our Highland Lakes lifestyle and community guides.

Wrapping Up

The cost of living in Highland Lakes offers meaningful housing savings, comparable everyday expenses, and a lifestyle upgrade, with trade-offs in commute times and access to specialized services. The biggest financial difference is housing, not taxes or groceries. If you’re buying a non-waterfront home, you’ll save real money compared to Austin. If you’re eyeing waterfront property, expect to pay a premium, but you’ll still get more space and lake access than you would at that price point in the city.

Taxes are lower because your home is worth less, not because the rate is dramatically different. Day-to-day costs are about the same. The commute is manageable if you’re hybrid or remote, but it’s a lot if you’re in Austin five days a week.

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