Castle Mountain Estates sits on the west side of Cottonwood Shores, on a high hill overlooking the Highland Lakes just off Thanksgiving Mountain Road, separated by elevation from FM 2147. It’s the largest-lot, highest-elevation subdivision in the city and functions differently from the rest of town: more acreage, more privacy, and lake views instead of lake access.
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What You’ll Find Here
Recent activity here has been concentrated in land sales rather than finished homes. Lots have listed in the 1.5–1.6 acre range, priced around $389,000–$399,000, aimed at buyers planning to build rather than move into an existing house. Some of these are marketed as gated estate lots. We didn’t find reliable recent sale data on finished homes here, so treat this as a build-to-suit area rather than an existing-inventory neighborhood for now.
A Recent Zoning Change Worth Knowing About
In January 2026, the Cottonwood Shores City Council voted 2-1 to rezone lots 2, 3, and 4 within Castle Mountain Estates from single-family residential to planned-unit development mixed-use, which now permits both residential and commercial buildings on those specific lots. The subdivision also neighbors Bluffview Waters, a $75 million condominium project the city council approved in August 2025. If you’re buying here specifically for a quiet, purely residential setting, it’s worth understanding exactly which lots fall inside that rezoned area before you commit.
Location
Castle Mountain Estates trades direct lake access for elevation and views. It’s a short drive down to Cottonwood Shores’s public boat ramps on Lake Marble Falls and Lake LBJ rather than being walkable to either. For lake-adjacent, smaller-lot options instead, see Driftwood or Scarlet Oaks.
Work With Robbie English
Robbie English, Broker and REALTOR® with Uncommon Highland Lakes Realty, works across Cottonwood Shores and the rest of the Highland Lakes. Reach out or call 830-953-5571 to talk through whether this is the right fit.
Sources
Zoning and development details from The Picayune / DailyTrib.com (Jan. 19, 2026). Lot pricing and acreage referenced from current listings on HAR.com and Compass.
