Highland Lakes on the Rise
Communities around the Highland Lakes in Llano and Burnet Counties are not only picturesque, they’re thriving.
Known for its rugged, rocky hills, clear riverine lakes, and whitetail deer, the Highland Lakes in Llano and Burnet Counties are a nature lover’s dream. Today’s trek focuses primarily on Kingsland and a quick look at a couple of other towns.
Llano County’s Rock-Solid Economy
Llano County is one of the top counties in Texas for deer hunting, and the lease fees paid to ranchers—combined with the money hunters spend in the local economy—are a boost to not only the agricultural sector (cattle, sheep, and goats), but to others as well. Vineyards and wineries, stone cutting of granite and limestone, and production of vermiculite and llanite also add to local coffers and provide baseline economic support.
Llano County is also the only place where you’ll find llanite, a unique, igneous rock containing large porphyritic blue quartz crystals (a rare color for quartz). The stone is popular in jewelry, and some adherents even claim it offers metaphysical properties of peace and well-being.
Without being dismissive of the contribution of the natural resources sector, it is the impact of tourism and retirees that really drives the business engines of the region. Llano County also has the distinction of having the oldest population with 36 percent of residents 65 years and older. Aransas County ranks second at 29 percent, aged 65 and older. Both counties share the commonalities of being retirement havens and are highly popular with birding enthusiasts, which is growing as a driver of tourism activity statewide.
Lake Living in Kingsland
Kingsland is the largest town in Llano County and has been growing at about 1.2 percent annually. I believe there are more boat sales and service businesses per capita in Kingsland than any place I have ever been to in Texas. I counted roughly ten in this town of about 7,336, compared to Corpus Christi, with over 320,000 people supporting seven or so dealerships. There is a vast array of boat types deployed on the lakes. Everything from houseboats, pontoon craft, bass boats, runabouts, inboard ski boats, river running rigs, johnboats, kayaks, and canoes abound. On the mid to lower coast, you’ll find ultra shallow running and drafting flats boats, technical poling skiffs, bay boats, and large offshore sport fishing boats. Plus, Johnboats and kayaks are the norm.
Back in the 1970s when I frequented Kingsland more, it was the typical Texas Hill Country town with businesses laid out along both sides of the main route (RM 1431) through town. Lake Lyndon B. Johnson, (originally named Granite Shoals) and Lake Marble Falls were impounded in the 1950s. RM 1431 runs through both Kingsland and Marble Falls. Many of the commercial structures along RM 1431 were built in that era, or slightly thereafter, and I was a little surprised that today (except for Marble Falls), those areas have not been updated and are showing their age.
Lake LBJ is fed by the waters of both the Llano and Colorado Rivers. Fishing is reportedly still excellent here, and the waterfront is also where all the real estate action is. A quick look at data for Kingsland indicates median home values north of $450,000 and average prices of at least $700,000. That tells me that some of those exclusive, gated, waterfront, and golf-oriented developments offer million-dollar plus homes. It is the land on the shores of the Highland Lakes that is driving those premium prices. That prime land is finite, and demand is high relative to supply. Commuting time, according to the U. S. Census Bureau, is about 32 minutes. That leads me to suspect a good number of affluent tech professionals in Austin maintain a four- day stay on the lake and three back at their primary residence in Austin for work. I toured a couple of projects that were not gated and noted quite a bit of remodeling and updating, especially waterfront houses. Like many resort towns, there is quite a bit of older housing inventory awaiting rejuvenation.
The Rise of RVs
Kingsland and other towns in the Hill Country and Highland Lakes areas are highly popular sites for RV parks. Recreational vehicles have become one solution for the high cost of housing. As boomers have aged, some have opted for the nomadic lifestyle that RVs offer. While reliable stats are not available, anecdotal evidence suggests many have made, and others are making, RVs their permanent residence. RV parks really proliferated during and right after the COVID-19 pandemic, as did RV sales. Costs to rent a space with utilities range from roughly a low of $400 a month to over $1,000 for luxury RV projects. Ad valorem taxes are a sore point for many Texans, and none are collected on RVs, which helps explain their popularity. The ten-year rule is enforced in many RV parks, meaning owners reject RV’s ten or more years old to maintain a more positive image in the community. Though still relatively small as a proportion of total housing inventory, RVs are one of the fastest growing segments of the housing market.
Marble Falls: Thriving On Its Own
At the intersection of RM 1431 and US 281 lies the town of Marble Falls, in Burnett County, population estimated at 7,903 and growing at 2.13 percent annually. It’s a clean, bustling town with a high average household income of over $97,000. Though 60 miles from Austin and 75 from San Antonio, the local Economic Development Corporation doesn’t consider their town a bedroom community because it serves as a hub for trade serving over 121,000 people and generating $3.6 million a day in sales. It is self-sufficient and offers most, if not all, the services necessary to support its growing population. Nealy all the medical, hardware, lumber, retail, food-related services (restaurants and grocery stores), and professional services are readily available. Lake Marble Falls is smaller than LBJ and does not have as great a fishing reputation as its bigger sister lake upstream, but it remains a haven for pleasure boaters and has its own share of fine, upscale waterfront homes commanding premium prices. Economic drivers other than those noted above are similar to those in Kingsland.
History in Horseshoe Bay
I ended my day by visiting a home owned by a friend in Horseshoe Bay. The house, located in one of the older sections (1960s) of the development, was undergoing remodeling by my friend’s brother, who lives there full-time with his wife. His place sits atop a high hill off the shoreline but with 270-degree, spectacular views.
Horseshoe Bay straddles the county lines of Burnet and Llano Counties. Houses in those older sections and off the shoreline are reasonably priced. The newest sections with modern, custom home construction on the lakefront command a premium. Looking back northwest into Llano County, my friend pointed out Packsaddle Mountain. This impressive landmark has the distinction of being the site of the last fight between Anglo settlers and Apache Indians in 1873. Every time I head out on one of these exploratory trips, I am repeatedly struck by both the vast diversity and beauty of the Texas landscape, as well as the state’s rich history.
All notations on the history of towns in this blog were sourced from the Texas State Historical Association.
Views expressed on The 338 are those of the authors and do not imply endorsement by the Texas Real Estate Research Center, Division of Research, or Texas A&M University.
