Where to Live in
Waco

Waco 2026 Neighborhood Shortlist

The 2026 Vibe Check

Waco is done being your cousin’s quirky weekend trip. The post-Magnolia dust has settled, and what’s left is a city with a new, more permanent spine. The real story of 2026 isn't the tourist trap on S 8th St, it's the aggressive creep of development east of I-35. The line of gentrification is being drawn down N 18th St, where teardowns are happening faster than the city can approve permits. You'll see it: a dilapidated 1950s cottage next to a $450k modern farmhouse with a security gate. It’s creating friction.

Meanwhile, the true "new" hotspot is the warehouse district west of downtown, specifically the area around Franklin Ave and S 8th St. The old industrial bones are being sandblasted into taprooms and loft offices. But the secret's leaking south. The area around Baylor's campus is solidifying into a year-round economy, no longer just bleeding out during the summer. The city feels stretched—traffic on I-35 at 5 PM is a new brand of miserable, and the locals who remember when Valley Mills Dr was just a two-lane road are getting loud. Waco has confidence now, but it's the nervous energy of a city that knows its cheap days are numbered.

The Shortlist

Cedar Ridge

• The Vibe: Established Family
• Rent Check: High. A 1BR here is pushing $1300+, well above the city average.
• The Good: This is the pinnacle of stability in Waco ISD. You're zoned for Hillcrest PDS, which is the main draw. The streets are wide, the oaks are mature, and the lots are actual yards, not dirt patches. You're a quick 10-minute shot to the H-E-B on Hewitt Dr without dealing with the college crowds. The parks here are for residents, not tourists—Lakewood Park is where you take the kids to teach them how to ride a bike without dodging a film crew.
• The Bad: It is completely car-dependent. There is zero walkability. If you want a taco, you're driving. It's also the first neighborhood to feel the squeeze of the new Baylor Research & Innovation Collaborative (BRIC), meaning your neighbor might be a tenured professor or a tech founder, and the property taxes are reflecting that.
• Best For: The family that wants the best school district without living in a suburb like Hewitt.
• Insider Tip: Drive down Orchard Ln near Cedar Ridge Park on a Saturday morning. It’s the unofficial neighborhood show-off strip for new SUVs and landscaping.

Downtown / West End

• The Vibe: Urban Core
• Rent Check: Mid-High. A modern 1BR loft will run you $1200-$1400.
• The Good: This is where the energy is. You can walk to Dichotomy Coffee & Spirits for a meeting, grab a beer at Bare Arms Brewing, and catch a show at The Hippodrome without moving your car. The investment here is real; new mixed-use buildings are going up on Franklin Ave, and the city is finally making the Waco Suspension Bridge area a real public space, not just a photo-op. The walkability score is the highest in the city.
• The Bad: Parking is a nightmare if you have guests. The weekend noise from the bar district on S 8th St is unavoidable, and you will pay a premium for square footage. The "grit" is still here—you're just as likely to step over a panhandler as you are a stroller.
• Best For: Young professionals who work at Baylor, the medical district, or in tech and want a social life that doesn't require a car.
• Insider Tip: Check out the new spots popping up on N 8th St between Austin Ave and Franklin. That’s the next block to blow up.

Castle Hill

• The Vibe: Historic Charm
• Rent Check: High. You're paying a premium for the address and the walkability.
• The Good: The architecture here is the real deal—1920s Craftsman bungalows and Spanish Revivals with real character. It’s the most "neighborhood-feeling" place inside the city limits. You can walk to Buzzard Billy's for a swampy po-boy or cut through to Baylor's campus in 15 minutes. The Heritage Square Park events are actually attended by locals. It feels established and leafy.
• The Bad: Homes are old. That means expensive, surprise repairs. Street parking is the only option for most, and it’s a competitive sport on S 15th St. It’s also one of the first neighborhoods to feel the "Airbnb creep," where long-term neighbors are being replaced by weekenders, which kills the block party vibe.
• Best For: The Baylor professor or medical resident who wants historic charm and a short commute on foot.
• Insider Tip: The real hidden gem is the pocket between S 18th St and Baylor's campus. It's quieter, and the property values are climbing faster than the main drag.

South Waco

• The Vibe: Value Play
• Rent Check: Low. You can still find 1BR apartments for $800-$900.
• The Good: This is the last frontier for affordable homeownership inside the city limits. The lots are massive. If you're willing to put in the work, you can get a house with a huge backyard for a fraction of the price in Castle Hill. The new Baylor Ballpark has brought some positive investment to the southern edge, and the city is finally fixing the water lines south of US-84.
• The Bad: It’s not gentrified. Not even close. You’ll deal with vacant lots, struggling businesses, and crime rates that are higher than the north side. Amenities are sparse; you're driving for everything decent. It is a long-term hold strategy, not a move-in-ready paradise.
• Best For: The investor or the first-time buyer with a high tolerance for risk and a toolkit. Do not move here if you need a turn-key experience.
• Insider Tip: Watch Brook Oaks. It's a specific pocket in South Waco that is seeing the first wave of renovations. Buying a block off N 34th St could be the smartest play you make this decade.

Strategic Recommendations

• For Families: Cedar Ridge is the only non-negotiable answer. The schools are the best in the city proper, the crime is negligible, and the sheer size of the yards at Lakewood Park is what you're paying for. You sacrifice walkability for safety and school ratings, and that's the deal you make here.
• For Wall St / Tech: Downtown/West End. Your commute is a breeze to the BRIC or Baylor Research hubs, and you can walk to a legitimate happy hour. If you need a break from the city, Cameron Park is a 3-minute drive for a trail run. It’s the only place that feels connected to the new economy.
• The Value Play (Buy Before It Explodes): South Waco, specifically the Brook Oaks area. The city has earmarked funds for infrastructure upgrades south of the river. The big developers are still scared of it, which means the prices are low. You're betting on Baylor's continued expansion southward. It's a 5-7 year hold, but the ROI could double.