Woodway Becomes Waco's Fastest-Growing Suburb With New I-35 Infrastructure

Woodway issued 184 new residential building permits in the first half of 2026, up from 151 during the same period last year.

The increase lines up with the start of the Texas Department of Transportation project that will add two lanes to the I-35 frontage road between Loop 340 and Highway 6. Crews began work in April and expect the first section to open by December 2027. Buyers who closed on Woodway properties in May paid a median price of $278,000, according to Waco Association of Realtors data released last week.

The timing matters because Waco city planners approved the final segment of the University Parks Drive extension in June. That road will connect directly to the new frontage lanes and cut drive times from Woodway to Baylor University by roughly eight minutes. Families who work at the university or at the nearby Ascension Providence hospital now see Woodway as a shorter commute option than neighborhoods farther east.

Named spots shaping buyer interest

Woodway sits two miles from Cameron Park Zoo and three miles from the Dr Pepper Museum. Both sites draw steady tourist traffic that supports local retail along Franklin Avenue. The Greater Waco Chamber of Commerce runs a quarterly small-business grant program that awarded $42,000 to Woodway restaurants and shops in the spring round. Those grants helped three new storefronts open on the same block as the existing H-E-B at 1400 Woodway Drive.

School data also factors into decisions. Woodway residents attend Robinson Independent School District campuses. The district reported a 4 percent rise in enrollment for the 2025-2026 year and opened a new elementary wing in August 2025 that added 180 seats.

Price trends and next steps for buyers

Median sale prices in Woodway climbed 9 percent year-over-year through June. Homes on streets such as Lake Shore Drive and Old McGregor Road moved in an average of 19 days. Inventory sits at 2.8 months, below the six-month balanced market level.

Anyone considering a purchase should review the city’s online permit tracker for remaining lots along the new frontage road. Local lenders at American Bank and Extraco Banks both offer Woodway-specific construction loans that close in 45 days when buyers use approved builders. Checking flood maps for the Brazos River tributary that runs behind parts of the neighborhood remains a required step before offers.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.