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It is difficult to recommend a place to live as it depends on you personal taste and needs. In general, Austin is a very nice place to live. .
The city of Austin mainly spreads from north to south along the I-35 corridor. This highway divides the city east and west, while the Colorado river (also known as Town lake while its pass through downtown Austin) divides the city north and south.
At the east side of the city lives a large population of Hispanics as well as college students (the former mainly living in the Riverside area). Most of the apartment complexes for students are of recent construction and offer many amenities. This is a very accessible sector for students as it counts with several University of Texas Shuttle routes, which are free of charge.
The west side is bigger and diverse. Between I-35 and Mopac (Loop 1), you can find more student housing as well as downtown condos and neighborhoods with lots of history and tradition. To the west of Mopac you can find neighborhoods such as Far West, The Arboretum, etc. Although they have older houses and apartment complexes, they offer a more family environment. The southwest of Austin is characterized by middle class neighborhoods.
To the north of Austin, you can find several cities that have been integrated to the metropolitan area. Examples of that are: Cedar Park, Pflugerville and Round Rock. Those cities are the image of the typical American suburb. The same happens to the south of Austin, with cities such as Kyle and Buda.
Finally, around the coastline of Lake Travis and Lake Austin are some of the most expensive homes in Austin.