Texas' Most Expensive Neighborhoods: Where Affluence Meets Real Estate Premium

When exploring where the wealthiest households concentrate in Texas, the most expensive neighborhoods tell a compelling story. These affluent communities combine high household incomes with premium property values, creating some of the most sought-after residential destinations in the state. Our analysis of Texas communities with 5,000 or more households identified the 20 neighborhoods commanding the highest average household earnings, revealing a range from $165,000 to nearly $410,000 annually—a striking reflection of regional economic disparities.

The Price Premium: Understanding Texas’ Most Expensive Neighborhoods

The neighborhoods topping the list in Texas share a common characteristic: they attract upper-income families and established wealth. The highest-earning communities feature average household incomes exceeding $380,000, while their property prices reflect this purchasing power. These neighborhoods aren’t just expensive—they represent the convergence of good schools, prestigious addresses, and economic opportunity. The data, sourced from the 2023 American Community Survey and 2025 Zillow valuations, provides a current snapshot of where money concentrates in the Lone Star State.

Geographic Clusters: Where Affluence Concentrates

Three major metropolitan areas dominate the landscape of Texas’ most expensive neighborhoods:

Houston Area Dominance: The Houston-The Woodlands-Sugar Land region leads with five communities in the top 20, including West University Place ($409,677 average household income) and University Park’s Dallas counterpart. These neighborhoods command property values frequently exceeding $1 million, reflecting their status as premier residential destinations.

Dallas-Fort Worth Strength: The Dallas-Fort Worth-Arlington corridor features the densest concentration, claiming ten of the twenty most expensive neighborhoods. This region demonstrates consistent wealth distribution across multiple premium communities, from Southlake ($382,520 household income) to emerging affluent areas like Celina ($184,308) and Murphy ($176,156).

Austin’s Growing Elite: Austin-Round Rock-Georgetown rounds out the trio with three entries: Steiner Ranch, Lakeway, and Leander, showcasing how Texas’ tech hub has developed its own network of expensive neighborhoods attracting high-income professionals.

The Top Tier: Premium Neighborhoods Commanding Maximum Prices

West University Place claims the top position in Texas’ most expensive neighborhoods with an average household income of $409,677 and typical home values reaching $1,758,363. University Park follows closely at $389,868 household income with the highest median property values at $2,445,874. Southlake rounds out the exclusive top three at $382,520 income and $1,284,219 home values.

These neighborhoods represent the absolute peak of the Texas real estate market, where only the most affluent families can secure residential properties. The property-to-income ratio in these areas reflects their elite status—families here earn enough to purchase homes valued at four to six times their annual income.

The Complete Ranking: Texas’ 20 Most Expensive Neighborhoods

Key Insights From Texas’ Most Expensive Neighborhoods

Income-to-Price Relationship: The correlation between household income and property values varies significantly. Communities like University Park demonstrate exceptional property values relative to income, suggesting factors beyond earnings drive neighborhood prestige—including school district reputation, location access, and historical desirability.

The Middle Tier Transition: Moving from positions 5-10 reveals a critical shift in the market. While top-tier neighborhoods command $300,000+ household incomes, the middle-ranked communities operate effectively with $210,000-$265,000 averages, suggesting a distinct market segment within Texas’ most expensive neighborhoods.

Dallas Diversity: The Dallas-Fort Worth corridor’s significant representation indicates a broad market for expensive neighborhoods rather than concentration in single destinations. This creates options for different buyer profiles within the affluent segment.

What Sets These Neighborhoods Apart

Texas’ most expensive neighborhoods share several defining characteristics. School system quality consistently ranks as a primary driver—these communities typically serve excellent school districts. Infrastructure quality, including maintained roads, parks, and public services, reflects ongoing investment. Community planning emphasizes spacious lots and architectural cohesion, creating neighborhoods rather than mere collections of homes.

Investment Perspective on Premium Texas Communities

For those considering these neighborhoods, financial capacity represents just one requirement. Property taxes in Texas carry no state income tax offset, meaning true affordability requires not just purchase price but ongoing maintenance costs. Insurance, property taxes, and utilities in these expensive neighborhoods can exceed $1,000 monthly for properties valued above $1.5 million.

The neighborhoods listed represent established wealth and stable investment potential. Unlike emerging communities that might appreciate rapidly, these established expensive neighborhoods offer stability and consistent demand from high-income households seeking premium addresses.

Planning Your Move to Texas’ Most Expensive Neighborhoods

Whether relocating to Texas for employment in technology, energy, healthcare, or finance, these most expensive neighborhoods provide options across three dynamic metropolitan regions. Austin attracts tech professionals, Dallas serves finance and corporate headquarters, while Houston draws energy sector executives.

Understanding where Texas’ most expensive neighborhoods concentrate geographically helps with relocation planning. The Dallas-Fort Worth presence offers the broadest selection and price range within premium communities. Houston provides established luxury neighborhoods with strong historical appreciation. Austin’s expensive neighborhoods appeal to those prioritizing proximity to the tech corridor and cultural amenities.

These twenty communities represent the pinnacle of Texas residential real estate. Their combination of premium property values, high household incomes, and established prestige makes them targets for those seeking to join Texas’ most affluent communities. Whether motivated by career opportunity, family considerations, or investment perspective, understanding Texas’ most expensive neighborhoods provides the foundation for informed decision-making in the state’s luxury real estate market.