Top 5 Neighborhoods and Suburbs in the Waco, Texas Area (2026)

The article was originally published on March 6, 2026 and updated in October, 2026.

Home to Baylor University and birthplace of the world-famous Dr Pepper, Waco, Texas is located midway between Dallas and Austin.

The Brazos River and Lake Waco offer opportunities for outdoor recreation, while downtown provides restaurants, shops, and cultural attractions. Buyers can compare several distinct neighborhoods and nearby communities, each with different housing options and price points.

“This guide highlights five neighborhoods and nearby communities, with housing-market figures and local features to help buyers and brokers compare their options. As a wholesale mortgage lender operating in 49 U.S. states, AD Mortgage connects Waco-area brokers with Non-QM, conventional, and government-backed loan programs for the buyers moving into these neighborhoods.

Key Figures for the Waco, Texas Housing Market

Realtor.com figures refer to September 2026. Zillow’s typical home value reflects data through August 31, 2026. The median construction year comes from Point2Homes’ demographic data and is not a monthly market measure. Home values, asking prices, and completed-sale prices measure different things.

Home Prices in Waco, Texas

Before you talk programs and pricing, it helps to understand what Waco homes typically cost. This chart breaks down local home prices by range, showing where most of the market is concentrated. For brokers, it’s a quick way to frame affordability, set realistic borrower expectations, and align pre-quals with the price points clients are most likely shopping.

1. Downtown Waco

As in many cities, downtown is the liveliest neighborhood, blending historic architecture, modern amenities, and community gathering spaces. In Waco, however, downtown also offers convenient access to nature – residents can enjoy riverside walks at Indian Spring Park and kayaking along the Brazos River. 

According to Realtor.com, Downtown Waco’s median listing price was $457,000 in September 2026, compared with $274,000 citywide. The neighborhood’s median advertised monthly rent was $1,500.

• Dining Options. Want to meet friends or have a cozy dinner with your family? Downtown provides a variety of diverse dining options, including small bakeries, upscale restaurants, and vibrant bars. 
• Outdoor Activities. Those who enjoy active lifestyles can take the best of what downtown has to offer. Walking trails, water activities, sports fields, and other facilities contribute to a healthy and fun lifestyle.  Downtown’s riverfront also serves as an event space, with Indian Spring Park welcoming festivals and community gatherings.
• Rental Considerations. Downtown Waco’s median advertised monthly rent was $1,500 in September 2026, according to Realtor.com. Investors should compare similar properties and account for vacancy, operating expenses, and financing costs when evaluating a rental purchase.
• Proximity to Baylor University. The largest university in Waco is located next to downtown, making this neighborhood a top choice for faculty members and staff. 
• Cultural Hub. Festivals, concerts, and exhibitions draw residents and visitors downtown for special occasions. 

2. Austin Avenue

Austin Avenue combines historic homes and tree-lined residential streets with nearby restaurants, bed-and-breakfasts, and commercial businesses.

According to Realtor.com, Austin Avenue’s median listing price was $387,000 in September 2026. Listings spent a median of 53 days on the market, compared with 74 days citywide.

• Historic Character. Austin Avenue carefully preserves its heritage, seamlessly woven into a modern environment. One of the area’s best-known landmarks is Cottonland Castle, whose construction began in 1890 at what is now Austin Avenue and South 33rd Street.
• Nearby Services. Austin Avenue combines residential streets with access to restaurants and businesses along its commercial corridor.
• Price Trends. Austin Avenue’s median listing price was down 8.92% year over year in September 2026, according to Realtor.com. Buyers should distinguish changes in asking prices from changes in individual property values.
• Historic-Home Considerations. Buyers considering an older home should review its condition, maintenance needs, and any applicable preservation requirements before planning renovations.
• Mixed-Use Financing. For a property combining residential and commercial uses, brokers should confirm eligibility under the applicable AD Mortgage program guidelines. Property use, occupancy, and the commercial component can affect the available financing options.

3. Brookview

Brookview is a residential neighborhood in Waco. Buyers comparing homes here can review local listings, nearby services, and the schools assigned to each address. Located along Highway 84, the area offers quick access to local amenities as well as surrounding cities.

According to Realtor.com, Brookview’s median listing price was $239,900 in September 2026, below Waco’s citywide median of $274,000. The neighborhood’s median advertised monthly rent was $1,100.

• Housing Budget. Brookview’s September 2026 median listing price was below Waco’s citywide median. Buyers should also compare property condition, repair needs, and ongoing ownership costs when assessing affordability.
• Strong Community. The Brookview Neighborhood Association was established to connect residents, businesses, and organizations in the area.
• School Assignments. Buyers can check the schools assigned to a specific address using Waco ISD’s attendance-zone resources. School assignments should be verified for the property being considered.
• Market Activity. Brookview listings spent a median of 63 days on the market in September 2026, compared with 74 days citywide, according to Realtor.com.
• Wide Range of Amenities. Grocery stores, cafes and restaurants, healthcare facilities, and sport facilities are available within Brookview or close to the neighborhood.

4. North Lake Waco

North Lake Waco offers proximity to Lake Waco and its outdoor recreation areas. Buyers interested in this part of the city should compare individual properties for lake views, lot size, and access to nearby amenities.

According to Realtor.com, North Lake Waco’s median listing price was $329,900 in September 2026, with a median listing price of $170 per square foot. Listings spent a median of 89 days on the market.

• Property Features. Lot sizes, lake views, and access to recreation vary by address. Buyers should verify these features for each property rather than assume they apply throughout the neighborhood.
• Sports and Recreation. Proximity to nature gives a variety of opportunities for outdoor activities. Residents can choose between team or solo recreation in the open air. Nearby Lake Waco offers opportunities for fishing, camping, and boating, with recreation facilities managed by the U.S. Army Corps of Engineers.
• Waco Regional Airport. Located near North Lake Waco, Waco Regional Airport offers American Airlines service to Dallas/Fort Worth International Airport, providing convenient access to domestic and international connections.
• Transportation and Commute. Although North Lake Waco is a bit farther from bustling downtown, reaching the city is quick thanks to well-developed transportation systems and efficient roadways.
• Long-Term Demand. Homes in the lakefront area tend to maintain their value – especially when supported with limited inventory and access to amenities.

5. Woodway

Southwest of Downtown Waco lies Woodway, a neighboring city, yet one of the most prestigious suburban areas. Woodway stands out for its quiet atmosphere and safety, schools, and spacious lots with upscale properties. Access to parks and Lake Waco enhances the comfort of living and supports both mental and physical well-being.

Realtor.com states that Woodway’s median listing price is $425,000 in September 2026, compared with $274,000 in Waco. Listings spent a median of 82 days on the market.

• Well-Maintained Houses. Properties in Woodway are of high quality and typically feature brick and stone exteriors. Many homes are regularly renovated, reinforcing the overall upscale vibe of the neighborhood.
• Safety and Privacy. Woodway has a lower crime rate, compared to Waco’s average. Additionally, low traffic, large lots, and strong community involvement enhance neighborhood safety.
• Market Stability. From an investor perspective, Woodway housing has high potential due to limited inventory and consistent demand.
• Parks and Trails. Lakeside Park features a playground, an 18-hole disc golf course, and lake-view trails. Nearby Woodway Activity Park offers additional hike-and-bike trails and a sports field.
• Shopping and Services. Easy access to retail centers and everyday services allows residents to handle daily needs comfortably without traveling far.

Conclusion

Whether you’re evaluating these Waco neighborhoods as a buyer or guiding one through the decision as their broker, the mortgage process works best with the right program and the right support behind it. AD Mortgage gives brokers 24/7 partner support, learning materials, and access to flexible loan solutions — including Non-QM and DSCR options — to help Waco-area clients close with confidence.

Complete the Broker Package to become an AD Mortgage partner and access loan programs, broker tools, and support.

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