New real estate report reveals Austin's hottest neighborhoods of 2026

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.