Austin · Neighborhood Guide

Hills of Bear Creek: Bigger Homes and a 1.6% Tax Rate Near Buda

The Hills of Bear Creek is a traditional single-family neighborhood just south of South Austin, right off Manchaca and a short drive from Buda, where most homes are over 2,000 square feet. It sits outside city zoning, so as of my January 2025 tour the tax rate was about 1.6%, which is shockingly low for this area. If you're shopping in the $500,000 to $600,000 range, I think the value here knocks it out of the park.

The Hills of Bear Creek Driving Tour | Large New Homes in South Austin with Low Taxes
Video: The Hills of Bear Creek Driving Tour | Large New Homes in South Austin with Low Taxes · Published Jan 2025 · Watch on YouTube

At a glance

Location
Just south of South Austin, off Manchaca; about 10-15 minutes to Buda
Price range
Low $400s to about $600K, a couple over (as of Jan 2025)
Home sizes
About 1,500 sq ft to almost 3,000 sq ft; most 2,000+ with 2.5- or 3-car garages
New construction
Final phase (phase six) building (as of Jan 2025)
Tax rate
About 1.6%, outside city zoning (as of Jan 2025)
HOA
$62/month, pool included (as of Jan 2025)

Where the Hills of Bear Creek is

The Hills of Bear Creek sits just south of South Austin, right off Manchaca near local spots like Armadillo Den and Lustre Pearl. Buda's historic Main Street, with its coffee shops and a big brewery, is about a 10 to 15 minute drive, and that drive usually runs opposite the main flow of traffic.

You do have to drive to get most places. But it's a very short, easy drive, and in my opinion location definitely has this box checked.

A real single-family neighborhood, not a condo-ized one

A lot of the newer homes in South Austin are what I call "condo-ized." They're detached houses, but they sit on small lots along private fire-lane roads. Parking gets tight, and it's hard to have people over. As I put it in the video: you can't really host, so it doesn't solve a lot of the purpose of owning a house.

The Hills of Bear Creek is different. It's a traditional single-family neighborhood with regular streets, bigger homes and real yards. To get a comparable home for a comparable price, you usually have to go a lot farther south into Buda.

Homes, sizes and new construction

The community is nearly new, and as of January 2025 the builder was working on the final phase, phase six. If you want to build something from scratch here, there was still a window when I filmed, but it's closing.

  • Sizes: there are homes around 1,500 to 1,600 square feet, but most are 2,000 and up.
  • Garages: 2.5- and 3-car garages are common.
  • Prices (as of Jan 2025): from the low $400s up to about $600,000, with a couple creeping over. A high-2,000 to almost 3,000 square foot home under $600,000 is a slam dunk for this part of Austin.

Amenities and HOA

The amenity center has a shallow beach-entry pool, a cabana, and picnic and barbecue areas. It's simple, but it covers what most families actually use.

The HOA was just $62 a month when I filmed in January 2025, and that includes the pool. That's a low number for a neighborhood with amenities.

The 1.6% tax rate and why it matters

Property tax is the number that surprises people moving to Texas. Relocation buyers are often pretty shocked to learn people here commonly pay $8,000 to $9,000 a year in property tax.

Because the Hills of Bear Creek sits outside a lot of the city taxes, the rate was about 1.6% as of January 2025. That keeps your carrying cost about as low as you'll find anywhere around Austin. It also matters if you ever move and keep the house: a low tax rate and low HOA could make it a very good rental or investment property down the road.

Touring the Hills of Bear Creek with me

When I work for you, you get me. I show the homes, I negotiate and I'm the one who answers your call. You're never handed off to a teammate you didn't choose.

If you want to see what's available in the Hills of Bear Creek, or compare it with other South Austin options, call or text me at (512) 983-7331 or email mason@masonsellsaustin.com.

My honest take
I really think the Hills of Bear Creek is worth considering if you're in the $500,000 to $600,000 range. You get a true single-family home with a yard and a big garage, a low HOA and a tax rate that's shockingly low for this area. The trade-off is that you'll drive for most errands and nights out, but it's a short drive, and you'd have to go well into Buda to find a comparable home at a comparable price.— Mason Bleasdell
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Common questions

Where is the Hills of Bear Creek in Austin?
Just south of South Austin, right off Manchaca near spots like Armadillo Den and Lustre Pearl. Buda's historic Main Street is about a 10-15 minute drive.
What is the tax rate in the Hills of Bear Creek?
About 1.6% as of January 2025, which is shockingly low for this area because it sits outside a lot of the city taxes.
What is the HOA fee in the Hills of Bear Creek?
$62 a month at the time of my January 2025 tour, and that includes the pool and amenity center.
How much are homes in the Hills of Bear Creek?
As of January 2025, from the low $400s up to about $600,000, with a couple creeping over. A high-2,000 to almost 3,000 square foot home under $600,000 is a slam dunk here.
How big are the homes in the Hills of Bear Creek?
There are homes around 1,500-1,600 square feet, but most are 2,000 and up, often with 2.5- or 3-car garages.
Is the Hills of Bear Creek a condo community?
No. Many newer South Austin homes are condo-ized, with small lots and private fire-lane streets. This is a traditional single-family neighborhood with bigger homes and yards.
What amenities does the Hills of Bear Creek have?
An amenity center with a shallow beach-entry pool, a cabana, and picnic and barbecue areas.
Is there still new construction in the Hills of Bear Creek?
As of January 2025, the builder was on the final phase, phase six, so you could still build from scratch.
Is the Hills of Bear Creek a good place for a future rental?
The low tax rate and low HOA keep carrying costs down, which could make it a very good rental or investment property if you move one day.
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When I work for you, you get me. I show the homes, I negotiate your contract, and I'm the one who answers your call. No hand-offs.