Spicewood is a resort community located on northern Lake Travis. Lake Travis is large and many communities surround it, with residents driving in to enjoy the lake, such as Lakeway, Costa Bella, Arbolago, Vineyard Bay, Lago Vista, Spicewood, Belvedere, Lake Point, Rough Hollow, Bella Strada, the Hills of Lakeway and Flintrock Falls. However only a select group of people can afford to live on Lake Travis. Home prices are always in the millions, though some may be found starting around $800,000, as this is generally considered the luxury price point at which location and building materials come at a premium.

Spicewood is served by the Lake Travis Independent School District, which offers high quality education to its students. Attractions include endless watersports, shopping and multiple golf courses. Lake Travis is prized for its outdoor recreational activity above all else. Also surrounding the lake are resorts, spas and bed and breakfasts. Homes in Lake Travis are so desirable their values remain intact even through up and down housing market conditions.