Updated on: November 3, 2026

Preston Hollow is a residential neighborhood in North Dallas, inside the City of Dallas limits, known for large wooded lots, rolling creek terrain and estate homes. The city does not set official boundaries, but the most common definition runs from Northwest Highway north to Royal Lane and from Hillcrest Road west to Midway Road. Broader versions reach north to LBJ Freeway and east to US-75 (Central Expressway), and the original Old Preston Hollow core is sometimes drawn with the Dallas North Tollway as its west edge. The neighborhood falls mainly in ZIP codes 75220, 75225 and 75230, with some definitions adding 75229. It is one of the most in-demand luxury areas in Dallas for buyers working with the Bale Real Estate Group.

Key Takeaway

Preston Hollow suits buyers who want large wooded lots, privacy and short drives to both downtown and the northern business corridors. The tradeoffs are a high entry price, a property tax bill set largely by the City of Dallas and Dallas ISD, private tuition for households that skip the public schools, and a car for nearly every trip.

Who This Guide Is For

It is written for buyers and renters weighing a move to Preston Hollow in North Dallas, including those comparing it with Highland Park and the Park Cities.

Preston Hollow at a Glance

Estate-section lots west of Preston Road typically run an acre or more.
Combined 2025 property tax rate: about 2.23% of taxable value.
Owner-occupants should file a homestead exemption; Dallas ISD exempts $140,000.
Homes are zoned to Dallas ISD; private school tuition is extra.
Non-peak drives: downtown 15 to 20 minutes, Love Field 10 to 15.

Pros and Cons of Living in Preston Hollow

Before making a move, it helps to weigh the tradeoffs and make the right move based on your lifestyle and long-term goals.

Pros

Large lots and privacy: Estate-section lots come in a size that is rare inside Dallas city limits.
Mature trees and rolling terrain: Creek beds and real elevation changes give the streets a country-lane feel.
Central location: Downtown and Love Field are short non-peak drives, and the northern suburbs are close too.
Private schools within minutes: Five well-known private schools sit in or beside the neighborhood.
Shopping nearby: Preston Center, Preston Royal and NorthPark Center handle everything from groceries to luxury retail.
Fewer design restrictions: As a Dallas neighborhood rather than a separate town, Preston Hollow gives owners more architectural freedom.
Architectural variety: Mid-century homes and new estates share the same streets.

Cons

High entry price: Housing is the main reason the area’s cost of living runs well above the Dallas average.
Property tax bill: The combined City of Dallas and Dallas ISD rate turns high valuations into large annual bills.
Upkeep and patrol costs: Large lots, pools and voluntary patrol dues add to the monthly budget.
Tuition on top of taxes: Families who opt out of Dallas ISD pay private tuition in addition to school taxes.
Car dependence: Few streets have sidewalks, and the nearest rail stations sit at the western edge.
School-hour traffic: Drop-off and pick-up slow the main roads.
Flood exposure: Homes near the creek-bed hollows may sit in a mapped flood zone, which can require flood insurance.
Tree rules on teardowns: Removing protected trees on a lot where a house is being demolished requires a city permit and replacement planting.
Possible aircraft noise: Love Field traffic passes over parts of the area intermittently.
Unclear boundaries: Definitions vary, so a home marketed as Preston Hollow may sit outside the narrower versions of the map.

Neighborhood Character: Country Quiet Inside the City

The first thing you notice when you turn off the main roads is the topography. Dallas is generally known for being flat, but Preston Hollow has rolling hills, creek beds and genuine elevation changes, known locally as the “hollows.”

Because the area was developed with privacy in mind, many residential sections have no sidewalks, particularly the estate areas. The lack of curbs and the deep setbacks give the streets a rural, country-lane look. It feels miles away from downtown, yet you are rarely more than 20 minutes from anything you need.

The architecture is as varied as the terrain. You will see 1950s ranch-style homes next to French chateaus and sleek, glass-walled modern homes. In 2026, older houses continue to be replaced with modern estates, but the mature tree canopy keeps the area feeling established and lush.

Preston Hollow Real Estate Market (2026 Update)

Preston Hollow is two markets:

Old Preston Hollow (the estate section): Generally found west of Preston Road, this is where you find well-known streets like Strait Lane and Inwood Road. Lots here are typically one acre or more, and prices are the highest in the neighborhood, set largely by lot size and the quality of the estate.
Eastern and northern sections: The areas closer to Hillcrest and Royal Lane offer more traditional lot sizes, though still generous by Dallas standards. Here you find a mix of original mid-century homes and new construction, at prices more accessible than the estate section.

For those not looking for a single-family estate, there is a limited but growing selection of luxury condos and townhomes near Preston Center and the Preston Hollow Village development.

Ask for current months of inventory and days on market for the streets you are considering before you set an offer price. More homes sitting longer gives a buyer more room to negotiate on price and repairs.

Teardowns and new construction face a tree rule that older resales do not. Under Dallas City Code Sec. 51A-10.130, a single-family lot under two acres is exempt from the tree removal permit. A permit is required if the lot is vacant, is two acres or larger, or involves demolishing an existing structure, which covers most rebuilds. That permit requires a tree survey and a replacement plan, and the new trees must at least equal the diameter inches of the protected trees removed. On a wooded lot, that planting can add real cost and time, so check the procedure with the City of Dallas arborist office before you close.

Cost of Living in Preston Hollow

On AreaVibes’ cost-of-living index, where the U.S. average is 100, Preston Hollow scores 122 against 107 for Dallas. That puts it about 32% above the Dallas average and 22% above the national average. Housing drives the gap: the neighborhood’s housing score is 164, with costs running 64% above the national average.

Preston Hollow homes pay City of Dallas and Dallas ISD property taxes. For tax year 2025, the combined rate is about $2.2267 per $100 of taxable value:

Dallas ISD: about $0.994
City of Dallas: $0.6988
Dallas County: about $0.216
Parkland Hospital: $0.212
Dallas College: about $0.107

For example, a home taxed at $2 million would owe about $44,500 a year before exemptions. With a homestead exemption, Dallas ISD exempts $140,000 of value, and the City of Dallas and Dallas County each exempt 20% of value from their portions. That brings the bill to about $39,500. Owners age 65 or older or disabled get an extra $60,000 off their value for school taxes. File the exemption with the Dallas Central Appraisal District after you buy.

Upkeep also runs higher than in a typical suburb, because estate-section land means larger landscaping and pool bills. Many streets also join voluntary Expanded Neighborhood Patrol programs, authorized by the Dallas Police Department. Under these programs, associations such as the Preston Hollow East Homeowners Association and the nonprofit Preston Hollow Patrol Association hire off-duty, uniformed Dallas officers in marked cars. Dues vary by association, so ask the one covering your street. Older reporting on similar Dallas programs put dues around $240 to $400 per household a year, which may not match current Preston Hollow rates.

Flood risk is another cost tied to the creek-bed hollows. Federal law requires lenders to mandate flood insurance on federally backed mortgages for any property FEMA maps in a Special Flood Hazard Area, the 1% annual chance (100-year) floodplain. Check the specific address on FEMA’s flood map or the City of Dallas or DCAD map tools before making an offer. If it falls in a mapped zone, price insurance into your budget.

Preston Hollow vs. Highland Park: Which Is Right for You?

The biggest difference is governance. Highland Park is its own municipality (part of the Park Cities) with its own police force, fire department and utility services. Preston Hollow is a neighborhood within the City of Dallas. Highland Park applies stricter code enforcement, while Preston Hollow offers more architectural freedom and less oversight on minor property changes.

The two also feel different. Highland Park is social, walkable and dense, and you see your neighbors when you walk the dog. Preston Hollow is about seclusion. If you want to drive through your gate, disappear behind a hedge and not be seen until you leave the next morning, Preston Hollow is the better choice.

Commute patterns also matter. If your business is in Plano, Frisco or Legacy West, Preston Hollow saves you 10 to 15 minutes of traffic compared with Highland Park. If you work in Downtown or Uptown, Highland Park has the slight edge.

Side by side, the two differ on:

Lot size: Highland Park lots are smaller and homes sit closer to the street; Preston Hollow’s estate lots are far larger.
Tax rate: Highland Park’s combined 2025 rate is about $1.61 per $100, well below Preston Hollow’s.
Median price: Highland Park’s median single-family sale price was $1,613,840 in the fourth quarter of 2025.
School district: Highland Park homes are zoned to Highland Park ISD; Preston Hollow homes are zoned to Dallas ISD.

Education: The Private School Corridor

Preston Hollow is often called the “Private School Corridor” of Dallas. Homes are zoned to Dallas ISD, including Hillcrest High for parts of the neighborhood. Attendance zones split within Preston Hollow, so confirm the schools for a specific address with Dallas ISD’s school finder before buying.

You are within minutes of arguably the best collection of private schools in the state, including:

St. Mark’s School of Texas
The Hockaday School
Ursuline Academy
Jesuit College Preparatory School
Episcopal School of Dallas (ESD)

Admission at these schools is competitive. Check each school’s published tuition when you build your budget.

During drop-off and pick-up, traffic on main roads like Walnut Hill Lane and Preston Road increases.

Amenities: Shopping & Dining

Preston Hollow doesn’t have a traditional Main Street, but two commercial hubs serve as the community’s downtown.

Preston Center is the upscale center of the area, straddling the line between University Park and Preston Hollow. The Plaza at Preston Center has luxury shopping, dining, boutiques and professional services. Nearby Preston Royal offers a more neighborhood-focused mix of restaurants, grocery options and daily conveniences.

For larger shopping trips, you are minutes from North Park Center, one of Dallas’s main luxury shopping destinations, with more than 200 retailers, restaurants and entertainment options. Dining ranges from steakhouses to casual neighborhood spots.

Parks & Recreation: The Northaven Trail

The neighborhood’s main outdoor amenity is the Northaven Trail, an 8.5-mile paved trail in the Oncor power line corridor. It runs from Monroe Drive in Northwest Dallas, with bike lanes to the Walnut Hill/Denton Drive DART station, east to the “Low Five” pedestrian bridge over US-75. That bridge connects to the White Rock Creek, Cottonwood Creek and SoPac trails. The trail is where residents walk, run and cycle.

For tennis, Netherland Park, a 5.2-acre public park at 5600 Dittmar Place, has two public hard courts for tennis or pickleball plus walking trails. The courts are unlit.

Nearby private golf clubs include the Northwood Club and Preston Trail Golf Club.

Commute & Location

The freeways at the neighborhood’s edges give Preston Hollow quick access in three directions. That makes it a practical midpoint for households with one commute downtown, such as to the Arts District, and one to Plano, such as to Toyota’s headquarters.

Outside peak hours, downtown is about 15 to 20 minutes away and Dallas Love Field about 10 to 15. The short airport drive is a strong selling point for frequent travelers.

Transit is limited. The nearest DART rail stops are Walnut Hill Station (8150 Walnut Hill Lane, bus Route 27) and Royal Lane Station (11310 Denton Drive, bus Route 233) on the Green Line. Forest Lane Station (8210 Forest Lane, Route 22) serves the Red and Orange lines. All three connect to the Preston Hollow GoLink zone, DART’s on-demand microtransit service, but for most daily trips you will need a car.

Living near the airport has a noise tradeoff. A flight-noise analysis site ranks Preston Hollow among the quietest Dallas neighborhoods for Love Field noise. It describes the area as lateral to the main flight corridors, with higher, intermittent overflight. Exposure still varies by street, so visit a specific block at different times of day before buying.

Your Advantage When Buying in Preston Hollow

Buying in Preston Hollow requires more than just choosing a beautiful home. With varying lot sizes, price points, and lifestyle differences between sections, having a clear strategy is key. The Bale Real Estate Group helps buyers understand these nuances, work through the luxury market, and identify the right opportunities based on their goals. From evaluating location to negotiating terms, the focus is on helping you make confident, informed decisions in one of Dallas’s most exclusive neighborhoods.

Frequently Asked Questions

Is Preston Hollow Safe?

Preston Hollow is covered by the Dallas Police Department’s Northwest Patrol Division. As of the city’s April 13, 2026 public safety dashboard, the division recorded 239 crimes in the fiscal year to date, compared with 247 at the same point the prior year and 222 two years earlier. An earlier December 2025 dashboard showed the division’s year-to-date crime down 13.13%, against 11.98% citywide. Check a specific street in the Dallas Police Department’s public crime data before you buy.

What Famous People Live in Preston Hollow?

The neighborhood is known for its high-profile residents, including former U.S. President George W. Bush, along with business leaders and professional athletes. Deep setbacks and gated driveways make it attractive to public figures.

Are There Gated Communities or Mandatory HOAs in Preston Hollow?

The single-family streets generally rely on voluntary groups such as the Preston Hollow East Homeowners Association, which covers about 1,000 homes and invites residents to join. Several gated, condo and townhome communities do have mandatory associations, including Preston Gate, Preston Hollow Village, 12000 Preston Road, Gates of Prestonwood and the Lakes of Preston Hollow. Request the HOA documents before your option period ends.

Are There Design or Zoning Rules Beyond the City Code in Preston Hollow?

No neighborhood-wide overlay sets lot or design rules for Preston Hollow’s single-family areas, and no part of it lies in a city conservation or historic district. The exception is a single site at Preston Road and Royal Lane, where an $800 million mixed-use project is seeking its own Planned Development District. The plan commission recommended raising the height limit there to 240 feet from 54 feet, and the City Council holds the final vote. Buyers planning a rebuild should confirm the lot’s zoning with the City of Dallas before closing.

Is Preston Hollow Part of University Park?

No. Preston Hollow is a neighborhood inside the City of Dallas, while University Park is a separate city with its own taxes and schools. Northwest Highway marks Preston Hollow’s southern edge, and Preston Center sits right on that line, which is why the two are often confused.

Planning to sell? Learn how Bale Real Estate Group helps sellers prepare, price, and market their homes. Why Sellers Hire Bale Real Estate Group.

Planning to buy? Learn how Bale Real Estate Group helps buyers evaluate homes and complete their purchase. Why Buyers Choose Bale Real Estate Group.

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