Horseshoe Bay's housing stock reflects its resort origins. Development concentrated around golf-course communities, gated neighborhoods, and waterfront corridors along Lake LBJ, with condominiums and townhomes clustering near the resort and country club. Building has unfolded over several decades, beginning with the resort era of the 1970s and continuing through later phases such as the Horseshoe Bay West neighborhood, which dates to the late 1980s. Beyond the resort core, buyers can find Hill Country acreage with views of the lake and surrounding hills. The emphasis throughout is on low-density, amenity-rich living rather than dense suburban development, and most residents own their homes.

The city's neighborhoods are largely organized around the resort, the lake, and the golf courses rather than a traditional downtown grid. Horseshoe Bay West, established in the late 1980s, is a notable example, offering larger homes on generous lots within the broader resort footprint. Waterfront corridors along Lake LBJ hold homes with direct lake access, while gated golf-course communities wrap several of the resort's fairways. Because much of the area was master-planned around recreation, the subdivisions share a consistent character of wide streets, mature landscaping, and views of either water, fairway, or Hill Country ridgeline.

Life in Horseshoe Bay revolves around the lake and the resort. Golf is a defining pastime, with multiple Robert Trent Jones-designed courses, a full-service country club, tennis courts, and a putting course within the resort. Marinas and yacht-club facilities support boating and fishing on Lake LBJ, and the lake's steady level allows dependable waterfront recreation. Dining and social life center on the resort's restaurants, club amenities, and small local businesses. The community's resort-town rhythm, combined with its older, retiree-heavy population, produces a relaxed, outdoor-focused way of life rather than a fast-paced suburban tempo.

Students in Horseshoe Bay are served by Marble Falls Independent School District, a district that covers a large geographic area of roughly 268 square miles across the Highland Lakes region. The district serves the portions of Horseshoe Bay in both Llano and Burnet counties, along with neighboring communities such as Marble Falls, Granite Shoals, Meadowlakes, and Cottonwood Shores. Because the district spans such a wide area, school facilities are distributed across the region, and families generally access campuses by car. The district's long-standing presence in the area makes it the default public-school option for Horseshoe Bay residents.

Horseshoe Bay is reached primarily by car, sitting near the intersection of U.S. Highway 281 and State Highway 71 in the Hill Country northwest of Austin. The city is served by Horseshoe Bay Resort Airport, a general-aviation facility that accommodates private aircraft and supports the resort's destination traffic, with scheduled commercial service available at larger airports in Austin and San Antonio. Within the community, residents rely on personal vehicles for most trips, reflecting the area's low density and spread-out layout. The drive to downtown Austin is roughly an hour, making Horseshoe Bay accessible for Hill Country getaways and, for some, periodic commuting.

Recreation in Horseshoe Bay is anchored by Lake LBJ, which supports boating, fishing, swimming, and water sports through much of the year, supported by marinas and a yacht club. On land, the resort's golf courses and tennis facilities provide year-round options, while local parks such as Martin Park and the Horseshoe Bay Nature Park offer trails and green space. The surrounding Highland Lakes region extends those options with additional lakes, Hill Country drives, and the wineries and small towns nearby. The area's mild winters extend the outdoor season well beyond what is typical for much of Texas.