East Austin ... it depends. East of IH35 is an emerging market and that is exactly what some people want as far as appreciation and staying a step ahead of the market. How many times have we each asked ourselves "oh I wish I would have bought in that neighborhood in '95" after we see how a particular neighborhood has appreciated in value and appeal and becomes the new cool place to be. Some, if not many, sections of east Austin have high crime and poor performing schools, but not all. On the other hand, east Austin had the highest appreciation of any area in Austin '06 and I bet we see the same for '07. So the "it depends" may work for you or may not work for you. I always recommend for my clients considering east Austin to drive around the neighborhoods at various times of day and see if they are comfortable. I have sold a couple east Austin properties to UT asst professors and it was exactly what they were looking for ... urban, bike to UT, diverse, emerging market for a good appreciation outlook.