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Why Everyone Is Moving to 78704: Austin’s Bohemian-Luxe Real Estate Revival

Why Everyone Is Moving to 78704: Austin’s Bohemian-Luxe Real Estate Revival

Austin’s 78704 Zip Code: A Real Estate Renaissance

Table of Contents

Regional Overview: The Heart of South Austin

Zip code 78704 encompasses some of Austin’s most iconic and beloved neighborhoods, including Zilker, Barton Hills, Bouldin Creek, and Travis Heights. Home to just over 35,000 residents, the area boasts a unique combination of greenery, history, and high-end new development—all within 10 minutes of downtown.

It’s also a mecca for local startups, independent boutiques, co-working campuses, and creative professionals. The convergence of outdoor lifestyle (paddleboarding on Lady Bird Lake or hiking the Greenbelt), culinary culture, and proximity to major highways and tech campuses make it a major draw—especially for those wanting to escape coastal congestion without sacrificing city life.

Recent data from the Austin Board of Realtors (ABoR) reports that median household income in 78704 is nearly 80% higher than the national median, and education levels are well above average, with over 65% of residents holding a bachelor’s degree or higher.

Housing Trends in 78704

Property Price Movement

In the past 12 months, real estate prices in 78704 have increased by 18%, outpacing the broader Austin metro average of 9%. The current median home price as of April 2024 sits at approximately $935,000, though luxury properties frequently trade for over $1.5 million.

Condos and modern townhomes dominate recent builds, though quirky mid-century homes and preserved craftsman cottages remain popular. Inventory is tightening, with average days on market falling by 20% year-over-year—currently hovering around 21 days.

High-Demand Segments

Buyers are especially drawn to:

  • Newly constructed three-bedroom homes with sustainable features
  • Boutique condo buildings offering rooftop decks and electric vehicle charging
  • Walkable properties near South Congress (SoCo) and South First (SoFi)

Austin-based realtor Michelle Laurent shared, “Clients from New York, Los Angeles, and even Nashville are asking for private backyards, creative studio spaces, and access to coffee shops and live music. 78704 nails that vibe every time.”

Buyer and Renter Behavior

Who’s Moving In?

The area is attracting a diverse mix of:

  • Young tech professionals relocating from San Francisco and Seattle
  • Entrepreneurs and digital nomads embracing Austin’s startup-friendly environment
  • Remote workers and creatives seeking outdoor access and cultural immersion
  • High-earning millennials and Gen Z early adopters ditching suburban sprawl for urban flair

Renters are equally active, with luxury apartment occupancy rates at over 95% in early 2024. Average rent for a two-bedroom now exceeds $2,650/month, up 12.3% from last year. Those who can’t buy yet often opt to rent in the area while watching for condos to hit the market.

Buyer Priorities

Homes under $1M with modern updates and walkability command fierce competition. However, many buyers are happy to take on renovations to gain access to this urban village. One recent buyer noted, “I got priced out of San Jose, but in 78704, I can actually live in a place that feels creative and connected.”

What’s Fueling the Frenzy: Austin-Specific Lifestyle Trends

Austin’s rising cost of living hasn’t dampened demand—it shifted the focus toward value-filled urban enclaves with deep cultural roots. And in 78704, that perfect balance of livability meets lifestyle.

Key Drivers:

  • Remote Work Boom: Flexible job setups are letting high-income earners relocate to lower-tax states like Texas.
  • Climate Migration: Warmer winters and limited natural disasters attract wealthier buyers leaving California and New York.
  • Media Attention: Frequent features in national “best neighborhood” lists and travel publications generate buzz.
  • Celebrity Sightings: Musicians, influencers, and actors are frequently spotted in/around South Congress and Zilker Park—Fuelling interest among aspirational buyers.

A prominent real estate investor recently noted, “78704 has become symbolic of what post-pandemic homebuyers want—urban charm with flexibility and function baked in.”

Top 3 Neighborhoods to Watch in 78704

1. Bouldin Creek

Art-forward bungalows meet sleek new builds. Expect murals, café patios, and hidden speakeasy bars. Prices for single-family homes average around $1.1M.

2. Zilker

Known for Zilker Park and ACL Festival, this area boasts hiking access and top-notch schools. High demand for family-friendly three- and four-bedroom homes.

3. Dawson

A rising star, Dawson is drawing in budget-conscious buyers and creatives with its slightly lower price point and quick access to SoFi. Strong appreciation projected in 2024.

What $500K Buys You in 78704 Right Now

Let’s be honest: $500K isn’t buying you a full-size home in 78704 anymore—but that doesn’t mean buyers are out of luck.

As of early 2024, here’s what you can get:

  • A 650–800 sq ft modern condo with high ceilings and private balcony
  • 1-bed/1-bath units in new buildings offering amenities like coworking lounges and dog runs
  • Investment properties that provide strong Airbnb or mid-term rental appeal

Buyers seeking long-term investments or secondary homes often enter the area by purchasing small condos, then leveraging appreciation for larger upgrades later.

Market Outlook: Q3 Forecast and Beyond

As spring melts into summer, Austin’s 78704 zip code shows no sign of slowing down. Experts predict another 5–7% price increase by Q3 2024, especially fueled by low inventory and ultra-sticky demand from high-net-worth relocators.

The long-term forecast is even more bullish. Infrastructure upgrades, high walkability scores, and zoning flexibility (such as ADU-friendly policies) position 78704 to be a national case study in sustainable urban desirability.

If you’re dreaming of a neighborhood where you can bike to brunch, hit up a live show, and still close a business deal over craft coffee, 78704 is the zip worth zoning in on.

Search Companies and Real Estate Professionals Near You

Thinking about moving to 78704? Planning to invest in one of Austin’s fast-rising markets? Or maybe you’re just curious what locals think is the best taco in town (hint: it’s a hot debate in Bouldin Creek).

Find local real estate agents, property managers, moving companies, interior designers, and more by searching your zip code now at CompaniesByZipCode.com. Discover professionals who live and work near 78704—and can help make your next move easy, exciting, and expertly managed.