Kyle, Texas: Austin’s Growing Southern Neighbor

Welcome to Kyle: the pie capital of Texas, the birthplace of fajitas, and an emerging industrial hub along the IH-35 corridor between Austin and San Antonio. 

Kyle, like many of Austin’s surrounding suburbs, is experiencing rapid growth and is one of the fastest-growing cities in Texas.

In this article, we will guide you through everything you need to know about Kyle including:

• Where is Kyle, Texas?
• How big is Kyle, Texas?
• What are the key demographics in Kyle?
• What makes Kyle an attractive place for people to live?
• What is there to do in Kyle?
• What kind of businesses are located in Kyle?
• What are the main reasons tenants choose to locate their businesses in Kyle?
• What are the largest tenants in Kyle?
• What are the largest properties in Kyle?

Where is Kyle, Texas?

Kyle is located 29 miles south of Austin, along IH-35 between Austin and San Marcos.

How big is Kyle, Texas?

Kyle is one of Texas’ fastest-growing cities. It takes up just over 30 square miles and has a population of 56,500 people, based on 2023 estimates.

Downtown Kyle. Photo courtesy of DMC Wilcox.

What are the key demographics of Kyle, Texas?

The majority of the population in Kyle is between the ages of 18 and 65, with a median age of 35.

^{Source: U.S. Census Bureau, 2020} 

The vast majority of Kyle’s residents have at least a high school education with 89.3% having a high school diploma or higher, which is notably higher than the state’s average of 84.4%. Additionally, 30.7% of the city’s population hold a bachelor’s degree or higher which is the same as the state average.

The median household income in Kyle is $75,413, which is significantly higher than the national average of $64,994.

The majority of Kyle’s residents are married. Of its population, 51% are married, 33% have never been married, 13% are divorced, and 3% have been widowed.

The average travel time to work for Kyle residents is 38.1 minutes, slightly higher than the U.S. average of 26.9 minutes.

What makes Kyle an attractive place for people to live?

Kyle is an attractive place for those who want to live in the Austin area without the hefty price tag. Niche.com deemed Kyle as a city/town with a “sparse suburban feel.” Located between Austin and San Marcos, and in one of the fastest-growing counties in the country (Hays County), Kyle’s population multiplied 10 times over since 2000.

Schools in Kyle

Kyle, TX falls under the Hays Consolidated Independent District, which “reaches more than 221 square miles and serves over 20,000 students across 26 campuses.” In 2019, the school district was given an impressive B ranking by the Texas Schools Assessment. 

Hays CISD offers Career & Technical Education (CTE) programs and Science, Technology, Engineering, Arts, and Mathematics (STEAM) based education.

Kyle’s proximity to Austin and San Marcos offers opportunities for individuals pursuing higher education. Buda is a 25-minute drive from the University of Texas at Austin and a 15-minute drive from Texas State University in San Marcos. Not to mention, the Austin Community College – Hays Campus is located off IH-35 between Kyle and Buda.

Housing Prices in Kyle

According to Redfin, the average sale price of a home in Kyle is $389,750, while the average sale price of a home in Austin is $577,500. Kyle’s drastically lower housing prices play a large role in its continued growth.

^{Source: Redfin, August 2022}

What is there to do in Kyle, Texas?

The “Pie Capital of Texas”

In recent years, the Central Texas community of Kyle has begun to garner attention as the Lone Star State’s premier source of delicious pies. Texas Pie Company (TPC), located in Kyle’s main street district, is the cause of all this commotion, and it was even picked as H-E-B’s Grand Prize Winner in Quest for Texas Best in 2016. (You can even find the TPC pie dough in H-E-B stores now.) 

The entire town is now involved, as businesses bring their own unique approach to the “Pie Capital of Texas” brand. 

Texas Pie Company. Photo courtesy of Heather Cowper.

Every Labor Day weekend, locals and visitors can attend the Pie in the Sky Hot Air Balloon Festival. Festivities over that weekend include pie-eating contests, pie-baking competitions, and live music. The City of Kyle is currently taking steps to become officially designated as the Pie Capital of Texas through the Texas legislature

Restaurants

In Kyle, Texas you will find many locally-owned restaurants. Some of the most notable restaurants include La Ola Pop Shop, The New World Bakery, and Milt’s BBQ. 

La Ola Pop Shop features gourmet paletas and ice cream. Founded in 1995 by native German Reinhard Halterman, New World Bakery proudly serves fresh bread every day to over 200 restaurants around Austin and San Antonio. Milt’s BBQ is right across the street from the Historic City Square Park and has been featured on KVUE as one of the top five BBQ joints in Central Texas.

Events

Kyle has a large variety of events for its close-knit community.

On the second Saturdays between the months of April and October, you can find Kyle Market Days in the Historic City Square Park with fresh flowers, ripe produce, baked goods, handmade items, and live music. 

During the summer months, you can enjoy Movies in the Park, located at Gregg-Clarke Park. This is a great family-friendly event that you can bring the whole family to for free. 

What kind of businesses are located in Kyle, Texas?

The top three employers in Kyle, Texas are Hays CISD, Seton Medical Center Hays, and FedEx.

At Kyle Crossing Shopping Center, you’ll find anchor retail tenants such as Target, Kohl’s, and H-E-B. Another retail center is on the rise as well – Dry River District. Once developed, 300,000 square feet will be available for retail tenants. It will be anchored by the already-standing Home Depot and Evo Entertainment.

As industrial tenants search for space in the Austin-San Antonio area, businesses are discovering that Kyle is a great option.

More and more businesses are discovering that Kyle has everything they need from a great workforce and schools to affordable living options for their workers,”

– Travis Mitchell, Mayor of Kyle, Next stop, Kyle: Amazon continues expansion in Central Texas, KVUE

Amazon, who recently moved into their 307,840-square-foot lease at Kyle Crossing Business Park, has already created more than 1,130 full and part-time jobs. But, Kyle isn’t the only Austin suburb that Amazon has its sights on. According to CoStar, a planned combined 1.87 million-square-foot industrial space will go to the Seattle-based company throughout the suburbs of Buda, Round Rock, and Pflugerville. It’s undeniable that Amazon will offer surrounding residents many business and employment opportunities.      

What are the main reasons companies choose to locate their businesses in Kyle, Texas?

Development Opportunities

According to the Economic Development Department of Kyle, the city has “acres of available property, an affordable cost of doing business, a favorable tax structure, and a growing infrastructure to support growth and future development.” 

The department reports that there are approximately 2.5 million square feet of retail/mixed-use space currently under development at the intersection of IH-35 and FM 1626 alone. There is an additional 900,000 square feet at FM 1626 and Kohlers Crossing. Plus, there are 800,000 square feet of retail/mixed-use space adjacent to Home Depot at Exit 215 among several other smaller planned developments. 

Incentives Available

Kyle offers a number of local and state economic incentives to businesses based on factors such as capital investment, creation of tax revenue,  job creation numbers, and average wage.

In recent years, city officials have also made recruiting more companies to the city a priority in order to become an employment hub for residents and diversify the city’s tax base.

Access to Major Distribution Arteries

Businesses can benefit from Kyle’s access to major U.S. highways, access to major distribution centers, and proximity to Austin’s customer base. The location along IH-35 allows for easy north-to-south distribution to Austin, Dallas, San Antonio, and beyond.

What are the largest tenants in Kyle, Texas?

A majority of Kyle’s largest tenants are industrial and retail tenants.

Industrial Tenants in Kyle

Retail Tenants in Kyle

What are the largest properties in Kyle, Texas?

Large Industrial Space in Kyle

The Plum Creek Industrial Center project will be the largest property in Kyle upon delivery. The 933,058-square-foot, three-building development is set for delivery in 2Q 2021.

Hays Logistics Center, located just off of IH-35 and County Road 210, is a two-building, 428,800-square-foot industrial campus. FedEx currently leases 222,800 square feet in Building 1. 

Kyle Crossing Business Park is a 535,113-square-foot, two-building major industrial project in Kyle that delivered in January 2020. Located just one block west of IH-35, the property is home to both Amazon and Lowe’s.  

Large Retail Space in Kyle

Kyle currently has three major shopping centers. The Dry River District, expected to deliver in March 2021, will include medical, hotel, multifamily, and retail space totaling over 300,000 square feet. Home Depot and Evo Entertainment are their main anchor tenants. Kyle Marketplace offers an H-E-B and the Kyle Crossing Shopping Center.

Conclusion

With multiple advantages for families and businesses alike, it’s a no-brainer that Kyle is one of the fastest-growing Austin suburbs. With plenty of room left to grow, it’s a great city for successful businesses, especially for industrial tenants and developers.

Want to learn more about Austin’s surrounding cities? Check out some of these other Austin suburbs:

• Your Guide to Leander, TX: One of the Nation’s Fastest-Growing Cities
• Your Guide to Hutto, Texas: Austin’s Newest Northeast Neighbor
• Your Guide to Georgetown, Texas: Gateway to the Austin MSA