Austin overflow brings growth to the Innovation Corridor
While Austin has become the country's fastest-growing metropolitan area over the past decade, that popularity has led to skyrocketing home prices and cost of living. In response, many homebuyers have turned to outer cities within reasonable driving distance of Austin, many still offering lower-priced homes as they proceed full-steam ahead with growth to match their demand. Kyle, a small city in Hays County just 22 miles south of Austin, is one of those places. Kyle's small downtown is full of local businesses, but residents also have access to a more recent influx of popular chain retailers and restaurants. Infrastructure, parks and trails are under development, accommodating the many commuters who are moving there. "In the year 2000, we had a population of 5,000 people. Now we have estimated over 58,000 people, closer to 60,000," says Rachel Sonnier, communications director for the city of Kyle. "We're along what's called the 'Innovation Corridor' now. It's like the economic development world's term for anywhere between Austin and San Antonio along the Interstate 35 corridor, and there's definitely been explosive growth we've seen."
The pie capitol of Texas, Kyle, sits on the outskirts of the greater Austin area.
Kyle's housing has increased drastically, leading to a buyers market full of renovations.
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An Austin-area small city with a distinct lifestyle and history
Downtown Kyle looks like an exemplary Texas small town, with locally owned bookstores, hair salons and barbecue joints surrounding a square park, all laid out in a grid abutted to the east by the shoulders of I-35. "We like to have the small town feel insofar as people know each other and there is a general warmth here," Sonnier says. "We have a distinct history from Austin. We were started by a railroad and just kind of have a different feel and look outside of Austin. In that sense, we're not really a suburb outside of Austin, as much as we are a city in the general vicinity of Austin." Residents dine at downtown Mexican and pizza restaurants, then hop across the railroad tracks for a country concert at the Railhouse. North of downtown, several chain restaurants, supermarkets and big-box stores are located at the Kyle Crossing shopping center on Kyle Parkway. Because the Interstate is so close to downtown, traffic in the area can be an issue, but the city is making investments to improve this. "In November of 2022, Kyle voters approved eight different roadway projects all throughout the city, and essentially all of them are meant to increase connectivity from the east side to west side across I-35," Sonnier says. "We also have a lot of water and wastewater infrastructure projects over the next five years that will be hugely critical to our growing infrastructure."
The Texas Pie Company of Kyle is a staple, famous for their desserts.
Classic cars, antique stores, and historic museums make Kyle a charming town.
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Job growth between two of the largest cities in Texas
Kyle doesn’t have a fully-fledged public transit system, but it does have microtransit service through the Capital Area Rural Transportation System (CARTS) Country Bus. This allows riders to request bus service and be picked up from their home with 24 hours' notice, with transportation only within Hays County. But with Kyle being a popular commuter city, most residents use a personal vehicle to get from A to B. I-35 cuts through town, providing direct connections to other in-between cities like San Marcos, which is 10 miles south. San Antonio is 60 miles south, but the gap between it and Austin is quickly closing as commuters flock to those in-between cities for convenient access to major employers along the Innovation Corridor, like Tesla and Amazon. "You can almost already see it happening. At some point, I don't think there's really going to be any break between Austin and San Antonio. All of those towns between Austin and San Antonio are all growing really quickly," says Realtor Miriam Moorman of Fathom Realty. For frequent flyers, Austin-Bergstrom International Airport is just 30 miles north. Meanwhile, the San Marcos Regional Airport, a much closer trek of 8 miles south, offers connections with major international hubs in Denver, San Diego, Atlanta and others.
Ascencion Seton Hospital still remain Kyle's largest employer.
Kyle Crossing and the I-35 corridor is host to Amazon warehouses and distribution points.
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A buyer's market of new builds aplenty
Kyle's established housing styles include a few older Craftsman and ranch-style homes. But with the recent growth in the city, most listings are for newly built modern traditional homes with brick exteriors and built-in garages. The median price of a single-family home in Kyle is $365,000, almost half the median price for a single-family home within Austin city limits. But homes generally take longer to sell right now unless they’re priced competitively, making Kyle a buyer's market. Homes typically sell after an average of 89 days on the market, compared to the national average of 44 days.
A charming traditional craftsman home commonly found in Kyle.
A row of stone traditional homes newly constructed in Kyle.
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Holiday parades, barbecue cook-offs and world record setting
Events are also a staple fixture of downtown. The biggest event of the year is the Kyle Fair, a weekend-long music festival with carnival rides and cooking competitions for barbecue, fajitas and margaritas. During the holiday season, the parks and recreation department decorates downtown with colorful Christmas lights in preparation for Santa's Arrival, a tree lighting ceremony and parade down Center Street. "In the past, we've also had the Guinness World Record attempt for gathering the most Kyles in the same place at the same time," Sonnier says. "This year, we will not be doing it. We're going to do it every three years because it's a big ordeal."
Locals can gather at the downtown Kyle Park for the 25 Days of Christmas in Kyle.
Locals can gather and enjoy live music every week at Nate's.
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Students in the arts, STEM and JROTC
Kyle is in the Hays Consolidated Independent School District, which has an overall B rating from Niche and serves over 23,000 students across 15 elementary schools, six middle schools and three high schools. Elementary students are offered a STEM magnet program, while high schoolers can participate in Navy or Marine JROTC programs. The district is known for its award-winning band, choir, visual arts and athletic programs.
Lehman High School is a new school in a developing area with speciality education opportunites.
Rosalio Tobias Elementary School is located on edge of Kyle on FM 150.
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Hill Country recreation and its weather patterns
When living just east of the scenic Texas Hill Country, Kyle residents are close to numerous outdoor adventure businesses around towns like Wimberley, roughly 18 miles west. But the city has seven parks of its own, like Steeplechase Park, popular for its disc golf course. Next door, Lake Kyle Park is a popular fishing hole stocked with sunfish, catfish and largemouth bass. Residents will soon be able to freely travel between city parks with the Plum Creek Trail, a planned 8-mile hike and bike trail. However, Plum Creek is prone to flash flooding because of its proximity to Hill Country, which is subject to frequent droughts followed by heavy rainfall. That common weather pattern also spells an elevated risk of wildfires, especially during dry spells.
Many residents in Kyle can beat the summer heat by having a river day.
A beautiful white-tail buck roaming the neighborhoods in Kyle.
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Rising crime rates remain below average
Data from the FBI's Uniform Crime Report shows that crime rates in Kyle have increased over the past decade. But the most recent data also shows that the city's average crime rate of 90.72 per 100,000 residents is well below the state and national averages, which are 126.11 per 100,000 and 129.98 per 100,000, respectively. Kyle Police have several ways for residents to report anonymous tips, including programs like the Hays County Crime Stoppers and technology solutions like the P3 Tips app.
Written By
Tom Jakob
Photography Contributed By
Austin Rowdy Winters
Video By
Grace Kim
Interested in learning more about homes in this area?
Reach out to
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an experienced agent in this area.
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On average, homes in Kyle, TX sell after 91 days on the market compared to the national average of 49 days. The median sale price for homes in Kyle, TX over the last 12 months is $339,999, down 5% from the median home sale price over the previous 12 months.
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