Austin’s Hottest Zip Code of 2024: 78704

Austin, Texas has been climbing the ranks of America’s hottest real estate markets for several years now, but in 2024, one zip code stands out from the crowd: 78704. Known for its vibrant culture, walkable neighborhoods, and close proximity to downtown, this iconic region just south of Lady Bird Lake is experiencing a renaissance. Buyers, renters, and investors alike are setting their sights on 78704, lured by its artistic vibe, access to top-tier amenities, and the not-so-secret migration of tech talent—and their wallets—into the heart of Austin.

Whether you’re a homebuyer looking to stake your claim in a hot neighborhood, an investor seeking the next big opportunity, or simply a fan of Austin’s unique urban flair, 78704 is the zip code to watch this year.

Hook: What Makes 78704 the “it” Zip Code of 2024?

Between the explosion of eclectic cafes on South Congress, the rise of fully renovated mid-century homes, and a flood of influencer-glossed open houses, 78704 doesn’t just reflect Austin’s real estate trends—it defines them. Social buzz has made “living in the 04” a status symbol, while Google Trends shows a significant spike in searches for “homes in 78704” over the past 12 months. With the perfect mix of boho charm and luxury living, it’s clear: 78704 isn’t just a place to live—it’s a lifestyle.

Table of Contents:

• About 78704: Regional Overview
• Real Estate Trends: Sales, Prices & Inventory
• Who’s Buying and Why
• Lifestyle Drives Demand: Local Flavor & Scene
• Top 3 Neighborhoods to Watch in 78704
• What $500K Buys You in 78704 This Month
• Migration Patterns: Where Are Homebuyers Coming From?
• Market Outlook: Q3 and Beyond
• Find Local Experts on CompaniesByZipCode.com

1. About 78704: Regional Overview

78704 encompasses some of the most iconic neighborhoods in Austin, including Zilker, Bouldin Creek, Travis Heights, and South Lamar. This section of South Austin boasts a dense mix of dining, nightlife, parks, and culture—plus enviable access to downtown. According to the U.S. Census Bureau, the population for this area has grown steadily over the past decade, with young professionals, entrepreneurs, and creative types flowing in.

The area has become especially appealing to transplants from San Francisco, New York, and Chicago who are drawn to Austin’s no-state-income-tax advantage, booming tech industry, and laid-back lifestyle.

“78704 is the sweet spot,” says local real estate agent Carla Jennings of Lone Star Living Realty. “You’re minutes from downtown, walking distance to everything, and the neighborhood vibe is something buyers can’t get enough of.”

2. Real Estate Trends: Sales, Prices & Inventory

The Austin Board of Realtors reports that as of Q2 2024, the median home price in 78704 reached $868,000—up 6.2% year-over-year. While interest rates have cooled off some of the fire from 2021-2022, demand remains strong, especially for properties under $1M that are turnkey or lightly renovated. Inventory in the zip code has decreased by 12% compared to this time last year, driving up competition for desirable properties.

Condos and townhomes also continue to outperform expectations, particularly in areas near Barton Springs and South Lamar, where proximity to restaurants and outdoor lifestyle is a huge plus for younger buyers and remote workers.

Key market stats:

• Median Listing Price: $868,000
• Avg. Days on Market: 21
• Inventory Down: 12% YOY
• Price/Square Foot: $578

Investors are also taking note, with short-term rental properties remaining in high demand thanks to Austin’s robust tourism and events calendar. Festivals like SXSW and ACL keep vacancies low and rental yields strong.

3. Who’s Buying and Why

The buyer pool in 78704 is as eclectic as the neighborhood names. From young tech professionals landing six-figure jobs at Apple, Dell, or Tesla, to remote creatives seeking artistic inspiration, to families upgrading from smaller condos—78704 appeals to a wide demographic range.

There’s also been a noticeable uptick in entrepreneurs purchasing live-work properties. These dual-purpose homes (often with accessory dwelling units or ADUs) are ideal for start-up founders and freelancers who want a flexible lifestyle without the downtown price tag.

Renter demand is following suit. According to Apartments.com data, searches for 2–3 bedroom rentals in 78704 have increased 18% in the past six months, driven largely by remote workers and downsizing retirees.

4. Lifestyle Drives Demand: Local Flavor & Scene

Ask anyone what it’s like to live in 78704, and they’ll likely begin with a list of experiences: mornings at Barton Springs, walking dogs down South Congress, tacos at Torchy’s, late-night shows at the Continental Club.

What makes 78704 undeniably magnetic is its balance. Nature abounds—Zilker Park is a jewel of the city—but so does nightlife. Indie boutiques and vegan eateries coexist with vintage record shops and neon-lit dive bars.

Recent lifestyle trends playing into this market:

• Wellness Boom: Yoga studios, juice bars, and health food cafés are omnipresent.
• Pet-Friendly Culture: Nearly every building, business and trail is built with furry friends in mind.
• Arts and Culture: From murals to SXSW showcases, this is Austin culture in hyperfocus.

In fact, the viral rise of Austin “day-in-the-life” TikTokers has helped push national curiosity toward 78704. Influencer Emma Taylor (@EmmovesAustin), who moved from Seattle to Bouldin Creek in late 2023, has generated over 2M views on content showcasing home tours and local food crawls in the area.

5. Top 3 Neighborhoods to Watch in 78704

Travis Heights

Tree-lined streets, historic bungalows, and unbeatable access to South Congress. Homes here are being updated with ultra-modern interiors while keeping classic exteriors intact.

Bouldin Creek

A hotbed for creatives, this neighborhood offers renovated cottages, walkable streets, and quirky architectural stylings. Think: reclaimed wood, bold colors, and art-meets-home vibes.

South Lamar

With rapid retail expansion and a surge of new luxury condo builds, this corridor is ideal for investors and first-time buyers alike.

6. What $500K Buys You in 78704 This Month

Let’s be real—78704 isn’t the “affordable” section of Austin anymore. But $500K can still get you a piece of the pie. Here’s what you might snag:

• A 1-bed/1-bath updated condo near Zilker Park, around 700 sq. ft.
• A fixer-upper bungalow in need of TLC in South Lamar
• A new studio loft with reserved parking and modern finishes

These micro-investments are popular among snowbird buyers, digital nomads, and first-time investors looking to break into Austin without overshooting budget.

7. Migration Patterns: Where Are Homebuyers Coming From?

Real estate migration data reveals that transplants from these cities are making 78704 their new home:

• San Francisco, CA
• Los Angeles, CA
• Brooklyn, NY
• Denver, CO
• Seattle, WA

The common thread? These buyers are often trading 1-bed condos or apartments for larger homes, lower taxes, and (still relatively) competitive real estate pricing.

“Almost half my clients now are coming from out of state,” says realtor Marcus Ruiz of ATX Roots Realty. “They saw what pandemic-era migration did to other cities, and they view Austin—specifically 78704—as both an investment and a lifestyle upgrade.”

8. Market Outlook: Q3 and Beyond

Even with national market uncertainty, all signs point to continued demand in 78704. While price growth may moderate slightly, the lack of inventory and consistent influx of new residents ensures that this zip code will remain resilient.

Long-term Outlook:

• Expect slower—but still steady—price appreciation
• Continued influx of tech-related buyer interest
• Rise in sustainable and low-impact housing projects

Short-term (Next 6 Months):

• Competitive bidding for listings under $900K
• Surge in summer rental rates tied to events and festivals
• More luxury builds and community-focused developments

9. Find Local Experts on CompaniesByZipCode.com

Whether you’re looking to buy, rent, list, or invest in 78704, start your search by connecting with real estate professionals who know the market inside and out. Visit CompaniesByZipCode.com to explore top-rated agents, property managers, and inspectors in the area—filterable by zip code for ultimate relevance.

Make your move with confidence—your next home in 78704 could be just a click away.

Stay tuned for next week’s edition of “Real Estate Trends by Region,” where we uncover the next fast-rising neighborhood you’re going to want to watch.

Search companies and real estate professionals near you at CompaniesByZipCode.com.