Posted: Thu, 24 Jun 2010 07:01 AM - 13,762 Readers

By: Larry Olmsted

It's not weird for weirdness sake. Instead, the Texas capital has bucked the trend toward mass-market commercialization and intentionally fended off chain retailers. The city is a sea of independently owned stores and restaurants, from bicycle, music and cowboy-boot shops to secondhand boutiques and art galleries. The only "big box" retailer downtown is Whole Foods Market, which started here.

The music and arts scene fits with the hippie vibe, organic yogurt shops and tattoo parlors. But Austin also is Texas' fittest city. It's home to a cycling and triathlon community. The University of Texas, with more than 50,000 students, gives the city a college-town feel. Second-home owners love Austin for the good weather (despite the hot summers) and because it is in the middle of Texas' Hill Country, with its vineyards, charming small towns and major lakes.

Downtown, meanwhile, is booming. Former mayor Will Wynn made its revitalization his mission from 2003 to 2009.

"The skyline has changed dramatically," Wynn says. "Virtually every high-rise you can see, which is a lot, is brand-new, and almost all are residential. Ten years ago, there was one apartment building, and just 250 people lived in the downtown core. Now it is 13,000, and my goal is 25,000 by 2015." The skyline changes more this month when the 56-story Austonian, the tallest residential building west of the Mississippi, opens.

Revitalization fits with the city's green ethos. One goal is to reduce car use: Many downtown residents, including Wynn, walk to work on widened sidewalks.

Suburban lake towns are popular with second-home owners, too. "There is no shortage of lakes, and Austin is a 12-month outdoor activity spot," says Alan Gabriel of Keller Williams Realty. "You can be water skiing in a wetsuit on Christmas Day."

A look at three Austin neighborhoods

Downtown: The revitalized area has captivated second-home buyers, thanks to new buildings with hotel-style amenities in walking distance of the Sixth Street entertainment district. The 148 residences at the Four Seasons hotel open this month with prices from $400,000 to $4 million. The new Austonian has 200 units from $559,000 to $8 million.

SoCo: Bumper stickers proclaiming "78704 — It's not a ZIP code, it's a way of life" refer to the hip parts of Austin's South Congress as well as South Lamar and South First streets. They teem with Tex-Mex and barbecue restaurants, vintage shops and music stores. Artists, athletes and the young want to live here. Modest homes along desirable stretches run $400,000 to $1 million.

Lake Travis: This large lake outside the city has been Austin's second-home epicenter. "We have visitors year round and that means strong rentals," says real estate broker Alan Gabriel. "The south shore is closer. Generally homes near the lake start around $300,000, but any true lakefront starts at a million. The north shore is farther, 45 minutes out, but you get more bang for the buck. The same 3,500-square-foot, three- to four-bedroom home that would run $1.2 million on the south shore could be $750,000."