Preston Hollow and Highland Park represent two different forms of local government. One is a compact, separately incorporated town. The other is a large Dallas estate neighborhood where buyers currently have real room to negotiate.

Preston Hollow single-family supply sits at 5.4 months, and the median price slipped 1.9% over the past year for the 90 days ending September 30, 2026. The price you pay there is more negotiable than the headline median suggests.

Key Takeaway

If you want land and room to negotiate, start with Preston Hollow: its single-family homes sold at a median 96.3% of list price in the 90 days ending September 30, 2026. If you’d rather trade lot size for walkable streets inside a separate town with its own school district, Highland Park is the alternative, but expect fewer homes to choose from.

Who This Guide Is For

You’re deciding whether to focus a north Dallas home search on Preston Hollow or Highland Park and want to compare land, price, local government, and negotiating room before you start touring.

Preston Hollow vs Highland Park: The Main Difference

The Town of Highland Park, TX, sits in Dallas County but operates entirely independently of the City of Dallas. It’s distinct from neighboring University Park, though they share resources.

Preston Hollow is a neighborhood inside the Dallas city limits. To understand the broader lifestyle context of the Dallas neighborhood, review the pros and cons of living in Preston Hollow.

Highland Park Is a Separate Town

The Town of Highland Park covers 2.26 square miles and has approximately 8,900 residents. It runs its own Department of Public Safety, which provides combined police, fire, and EMS services with 24-hour emergency response. The town also handles its own water, sewer, sanitation, and recycling. Highland Park and neighboring University Park are both served by one school district: Highland Park ISD.

What you give up is inventory. A town this small has very few homes for sale at any given moment, so your choice of streets, sizes, and price points is narrow, and you may wait a while for the right listing.

Preston Hollow Is a Dallas Neighborhood

Preston Hollow has no government of its own. The City of Dallas provides its municipal services, issues its building permits, and sets its city tax rates.

The neighborhood’s boundaries are informal, which means a listing can refer to several different subdivisions. Check the location and boundaries of Preston Hollow to see where the lines generally fall. It’s a much larger pool of homes than Highland Park, but listings do stretch the name, so verify any address against the boundary description before assuming it belongs.

Home Prices and Negotiating Room

The median single-family sale price in Preston Hollow was $2,399,601 in the 90 days ending September 30, 2026. That figure covers everything from older ranch homes on large lots to new estates.

Highland Park pricing data requires checking current town sales, since inventory moves differently in the smaller municipality. You can read more about broad pricing trends in the Preston Hollow housing market.

Preston Hollow Single-Family Homes

This is a market where offers below asking are normal. In the latest 90 days, the typical Preston Hollow house sold for less than its asking price, and only about one in eight went over.

For illustration only: a home listed at $2,500,000 that sells at the area’s median ratio closes near $2,407,500, roughly $92,500 below asking.

That said, a median this broad says little about a single street. A teardown and a new build can sit side by side, so ask for sold comps on the specific block before you set an offer.

Highland Park Single-Family Homes

Preston Hollow single-family homes recently sold for a median $544 per square foot. Check recent Highland Park sales to compare its current price per square foot and sale-to-list ratio directly against that figure. That comparison tells you whether you get less house per dollar in the independent town, and whether you have less room to negotiate.

One caveat: if the sales count is small, one or two transactions can swing the numbers. Verify the exact number of closed transactions before drawing conclusions about your bargaining power.

Condos in Preston Hollow

Condos offer a lower-cost entry into the area, with a median sale price of $316,500 based on 18 condo sales in the 90 days ending September 30, 2026. That median is roughly a seventh of the single-family median.

Condo prices in Preston Hollow rose over the past year even as house prices slipped, though the small sample size makes this a rough signal rather than a firm trend. Check recent listings in Highland Park to see if comparable condo stock exists there.

Condo supply is deep and slow-moving. The negotiating advantage you get on the way in can work against you when you sell, and you should factor in Preston Hollow HOA fees by asking each association for current dues, reserves, and any planned special assessments.

Lot Size vs Walkability

Preston Hollow is zoned largely for expansive residential lots. Highland Park features a tighter, older street grid. Before assuming a property can be subdivided or expanded, verify its specific zoning classification.

Larger Lots in Preston Hollow

Parts of Preston Hollow are zoned for lots of at least an acre inside the Dallas city limits. Check the Dallas Development Code for the specific single-family zoning district and minimum lot size of any property you’re considering.

Larger lots give you room for pools, guest houses, or a new build, plus more distance from neighbors. You can review typical property dimensions when moving to Preston Hollow.

What you trade away is walkability. Big lots mean long blocks, few sidewalks on many estate streets, a car for nearly every errand, and higher landscaping costs. Walk the street before you buy, and get a yard-care quote.

Smaller Lots and Sidewalks in Highland Park

Highland Park features a compact street grid with smaller minimum lot sizes. Check the Town of Highland Park zoning ordinances for exact lot coverage rules and setbacks.

That denser layout supports sidewalks and a more walkable environment. Highland Park Village is often cited as one of the earliest planned shopping centers in the U.S., a walkable anchor for nearby streets.

The tradeoff is that you pay for location on far less land. Expansion is limited by lot-coverage rules, so the house you buy may already be close to the largest the lot allows.

Taxes, Schools and Rebuild Rules

The Dallas County Tax Office bills and collects property taxes for both Preston Hollow and Highland Park, but it doesn’t set the rates.

Highland Park properties fall under the Town of Highland Park and Highland Park ISD. Preston Hollow addresses fall under the City of Dallas and Dallas ISD.

Property Taxes

The Town of Highland Park’s 2025 property tax rate is $0.199296 per $100 of assessed valuation, and Highland Park ISD adopted a 2025-2026 tax rate of $0.8347. The City of Dallas adopted a 2025-2026 property tax rate of $0.698800, and Dallas ISD’s 2025 tax rate is $0.993835. Both areas also pay the Dallas County rate of $0.215500.

To compare the combined rate on the same assessed value, add the city, school, and county rates for each location and apply the total to the home’s price.

Rates are only half the bill. Assessed value drives the rest, and a newly purchased home is often reappraised. Pull the current Preston Hollow property tax bill for the specific property and ask how the purchase price may affect next year’s appraisal.

Schools

The Town of Highland Park is served by Highland Park ISD. Preston Hollow addresses are in the City of Dallas, where district assignment must be confirmed by address. Dallas ISD provides an official SchoolSite Locator interactive map tool on its website to view attendance zones by address. Confirm assignments directly, and review schools in Preston Hollow for private-school tuition information.

District lines and school assignments can change, and a listing’s school information is not a guarantee. Confirm every address directly with the district before you rely on it.

Teardowns and Building Rules

Highland Park enforces its own building permit, demolition, and construction-hour rules. Preston Hollow properties require City of Dallas permits. Check with Dallas Development Services to see if a conservation district or neighborhood stabilization overlay applies to a specific Preston Hollow address. In both areas, the 47 single-family sales recorded in Preston Hollow over the latest 90 days included a mix of older ranch homes and new estates, reflecting active renovation and rebuild activity.

Rules differ block to block and change over time. Before you buy a home to rebuild, call the Town of Highland Park building department or Dallas Development Services with the exact address and plans.

Getting Around and Daily Errands

Most residents travel through the area using the Dallas North Tollway, US-75, Northwest Highway, Preston Road, and I-635.

Highland Park sits closer to the city core, which affects typical drive times. Review getting around Preston Hollow to compare highway access points.

Commute and Highway Access

The major north-south tollways and highways provide direct routes to downtown Dallas and the northern suburbs. Preston Hollow relies on Northwest Highway and Preston Road to reach those arteries, and both back up at rush hour.

Drive your specific commute at the times you’d travel before you commit to any address on your shortlist.

Preston Center vs Highland Park Village

Preston Center is the everyday shopping hub near Preston Hollow. Highland Park Village provides a historic, walkable retail center for the Town of Highland Park. Both offer dining and retail options. You can explore more parks and dining on the things to do in Preston Hollow page.

From most Preston Hollow homes, either center is a drive, not a walk. Check the real distance from any address you’re considering.

Which One Should You Shortlist?

A budget under $1 million limits your options to condos in Preston Hollow or townhomes in Highland Park.

The questions below can help narrow your search. Pull current sold comps for both areas to compare before you decide.

Do You Want Land or a Walkable Street?

If you want acreage and privacy, point your search toward the larger lots in Preston Hollow. If you prefer a smaller lot on streets you can walk, focus on Highland Park.

If you want both, expect to compromise. A Preston Hollow street near Preston Center or a larger Highland Park lot will cost you either on price or on choice.

Is Your Budget Well Under $1 Million?

Condos in Preston Hollow offer a realistic route into the area at that price point. Check recent Highland Park condo and townhome sales to see what that municipality offers at the same level.

You give up the yard. A condo gets you the zip code but not the land, and slow condo resale means you should plan to hold the property longer.

How Much Negotiating Room Do You Need?

Buyers who need price cuts, repair credits, or longer option periods have more bargaining power in Preston Hollow right now. Highland Park buyers should check its current sale-to-list ratio before planning a low offer.

That bargaining power is market-wide, not house-by-house. A well-priced Preston Hollow home can still draw multiple offers.

Are You Selling a Preston Hollow Home First?

If you need to sell a Preston Hollow home before you buy, plan your timeline realistically. Only 13% of single-family homes sold above list price in the 90 days ending September 30, 2026, and the median time on market was 51 days.

Review pricing strategies in Preston Hollow to position your home correctly, and check the FEMA flood map for any address near a creek before you list.

The same negotiating room that helps you buy works against you when you sell. Build roughly two months on market into your plan, or consider a contingency, and review seller closing costs in Preston Hollow to calculate your net proceeds.

At a Glance

Preston Hollow, all homes: median sale price $1,981,945, down 0.9% year over year (90 days ending 2026-09-30, 65 homes sold)
Preston Hollow, all homes: median $475 per square foot, 52 median days on market, 96% sale-to-list, 6.7 months of supply, 142 homes in inventory (90 days ending 2026-09-30)
Preston Hollow, single family: median sale price $2,399,601, down 1.9% year over year (90 days ending 2026-09-30, 47 homes sold)
Preston Hollow, single family: median $544 per square foot, 51 median days on market (90 days ending 2026-09-30)
Preston Hollow, single family: 96.3% median sale-to-list, 13% sold above list (90 days ending 2026-09-30)
Preston Hollow, single family: 5.4 months of supply, 82 homes in inventory (90 days ending 2026-09-30)
Preston Hollow, condo: median sale price $316,500, up 11.1% year over year (90 days ending 2026-09-30; based on only 18 condo sales, so treat it as a rough guide)
Preston Hollow, condo: median $253 per square foot, 80 median days on market, 95.5% sale-to-list, 5.5% sold above list (90 days ending 2026-09-30, 18 sales)
Preston Hollow, condo: 10 months of supply, 60 homes in inventory (90 days ending 2026-09-30)

Preston Hollow vs Highland Park FAQs

Is Preston Hollow Expensive?

It depends on the property type. In the 90 days ending September 30, 2026, the median sale price for all homes in Preston Hollow was $1,981,945, which is down 0.9% year over year based on 65 sales. The median price per square foot was $475. Check the at-a-glance list above for the split between single-family homes and condos.

Is Highland Park Dallas Affluent?

Highland Park is a separate town, not a part of Dallas, and its housing market features high price points. Check recent Redfin data for the Highland Park single-family median sale price to see current values. If the recent sales count is under 30, treat the median as a rough guide rather than a strict trend.

Why Is Highland Park Not Part of Dallas?

Highland Park remained independent because its 500 residents voted to incorporate the town on November 29, 1913, after Dallas refused a petition for annexation. The City of Dallas later sought to annex Highland Park in 1919, sparking a controversy that lasted until the 1940s. Ultimately, Dallas annexed the surrounding land instead, leaving Highland Park as a separate municipality.

How Far Is Preston Hollow from Downtown Dallas?

The Town of Highland Park is located approximately three miles north of downtown Dallas. To find the driving distance from Preston Hollow, map the route from Preston Road and Northwest Highway to downtown Dallas.

What Zip Codes Is Preston Hollow In?

Preston Hollow spans several zip codes. Review the Preston Hollow zip codes page for the complete list and area breakdown. A zip code alone doesn’t confirm a home is in Preston Hollow, because those postal zones extend beyond the neighborhood’s informal boundaries.

Is Preston Hollow Safe?

Crime rates depend on the specific reporting data from each local agency. Preston Hollow is covered by the Dallas Police Department, which publishes police incident data through the Dallas Open Data portal. Highland Park is covered by its own Department of Public Safety, which offers a Crime Reports page for residents. Review the Preston Hollow safety page for 2026 crime data.

Are There Apartments in Preston Hollow, Dallas?

Yes, multifamily rentals exist within and along the edges of Preston Hollow. The City of Dallas’s Northwest Highway and Preston Road Area Plan documents multifamily development in the Preston Center area, including a redevelopment example with 129 multi-family residential units. Planned Development District 15 (PD-15) is a primary multifamily zoning district along Northwest Highway across from Preston Center.

Is Preston Hollow a Nice Area in Dallas?

Preston Hollow offers large-lot zoning, proximity to Preston Center, and a housing market that currently gives buyers negotiating room. Judge the fit against your own needs and budget. Read the pros and cons page to weigh its features before you decide.

Preston Hollow vs Highland Park, TX: Prices, Lots and Negotiating Room (2026)