Cost of Living & Housing in Bee Cave
Bee Cave is genuinely expensive -- a million-dollar-plus median home price and a cost-of-living index nearly 30% above the national average -- but its property tax structure carries a real, disclosed tension worth understanding before budgeting.
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Learn moreA million-dollar-plus median, and it has held roughly flat
The median sale price for all home types in Bee Cave was $1,009,500 as of March 2026, down just 0.25% year over year -- essentially flat at a genuinely high level (Redfin, base record). This is well above every other market in this build wave.
The cost-of-living index confirms it: nearly 30% above the national average
BestPlaces cites a cost-of-living index of 129.1 for Bee Cave -- 29.1% above the U.S. average and 37.0% above the Texas state average, with median 2-bedroom rent at $1,990 versus a $1,430 U.S. average (base record).
Low tax RATE, but a high dollar tax BILL -- both are true at once
Bee Cave's median effective property tax rate is cited at just 0.83%, below both the Texas and national medians (Ownwell, base record). That sounds like a low-tax market -- but because home values are so high, the median actual dollar tax bill comes to $11,309, far above the national median bill of $2,400. Both figures are real; do not read the low rate alone as evidence that Bee Cave is cheap to own property in.
The city's own municipal rate is remarkably low -- because of the mall, not despite it
The City of Bee Cave's own municipal tax rate is just 2 cents per $100 of value -- possible because the city funds itself substantially through sales tax revenue from the Hill Country Galleria, which has accounted for roughly 21%-25% of citywide sales tax revenue since it opened in 2007 (base record). School-district levies (Lake Travis ISD, or Eanes ISD for some addresses) and Municipal Utility District (MUD) rates, which vary by subdivision, add substantially more on top of the city's own tiny rate.
No reliable homeowners insurance estimate this session -- get a real quote
A cited insurance range of roughly $1,052-$1,464/year reads as implausibly low relative to Bee Cave's $1M+ median home value and its Texas Hill Country flash-flood exposure -- likely a generic, non-calibrated estimate rather than a genuine Bee Cave figure (base record's metricSources). Get an address- and dwelling-value-specific quote directly rather than budgeting off that range.
Key takeaways
- Median sale price is $1,009,500 (March 2026), essentially flat year over year -- genuinely expensive relative to every other market in this build wave.
- BestPlaces' cost-of-living index (129.1) puts Bee Cave 29.1% above the national average and 37.0% above the Texas average.
- The effective property tax RATE (0.83%) is genuinely low, but the median actual dollar tax BILL ($11,309) is genuinely high -- both are true because home values are so high.
- The city's tiny 2-cents-per-$100 municipal tax rate exists because Bee Cave funds itself substantially through Hill Country Galleria sales tax revenue (21%-25% of the citywide total) -- school district and MUD rates add meaningfully on top.
- No reliable, address-calibrated homeowners insurance figure was confirmed this session -- the cited range looked implausibly low for this market's home values; get a real quote before budgeting.
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