and 2,496 families residing in the city. The population density was 532.7/km² (1,379.4/mi²). There were 3,501 housing units at an average density of 233.1/km² (603.5/mi²). The racial makeup of the city was 96.39% White, 0.80% African American, 0.12% Native American, 0.86% Asian, 0.86% from other races, and 0.96% from two or more races. Hispanic or Latino of any race were 4.21% of the population.

There were 3,124 households out of which 34.7% had children under the age of 18 living with them, 71.1% were married couples living together, 6.9% had a female householder with no husband present, and 20.1% were non-families. 16.5% of all households were made up of individuals and 6.8% had someone living alone who was 65 years of age or older. The average household size was 2.53 and the average family size was 2.84.

In the city the population was spread out with 24.7% under the age of 18, 3.5% from 18 to 24, 26.8% from 25 to 44, 28.4% from 45 to 64, and 16.5% who were 65 years of age or older. The median age was 43 years. For every 100 females there were 95.2 males. For every 100 females age 18 and over, there were 90.9 males.

The median income for a household in the city was $86,862, and the median income for a family was $94,266. Males had a median income of $70,211 versus $38,879 for females. The per capita income for the city was $45,765. About 1.8% of families and 3.1% of the population were below the poverty line, including 4.0% of those under age 18 and 3.3% of those age 65 or over.

Economy
Many residents of Lakeway commute to nearby Austin for work. Thousands of graduates each year from the engineering and computer science programs at The University of Texas at Austin provide a steady source of employees that help to fuel Austin's technology and defense industry sectors. The metro Austin area has much lower housing costs than Silicon Valley, but much higher housing costs than many parts of rural Texas. As a result of the relatively high concentration of high-tech companies in the region, Austin was strongly affected by the dot-com boom in the late 1990s and subsequent bust. The general consensus is that high-tech recovery is proceeding rapidly. Austin's biggest employers include the State of Texas, The University of Texas, the SETON Healthcare Network, Dell, IBM and Freescale Semiconductor (spun off from Motorola in 2004). Other high-tech companies with operations in Austin include Apple Inc., Hewlett-Packard, Vignette, AMD, Applied Materials, Cirrus Logic, Hoover's, Inc., Intel, Motive Inc, National Instruments, Samsung, Silicon Laboratories, Sun Microsystems, and United Devices. The proliferation of technology companies has led to the region's nickname, "the Silicon Hills," (Austin was originally "Silicon Gulch", but San Jose, California already had that distinction) and has spurred rapid development that has greatly expanded the city to the north, south, east, and west.

In addition to global companies, Austin features a strong network of independent, locally-owned firms and organizations such as the Austin Independent Business Alliance. The success of these businesses reflects the high level of commitment by the citizens of Austin to preserving the unique spirit of the city, and has been tied to the "Keep Austin Weird" campaign. Small businesses from restaurants to clothing shops to salons to arts companies in Austin enjoy a lively existence gained by direct competition with large national and global rivals. The government, as Austin is the TX capital and politically active, non-profits, and schools (the university and colleges, preschool-12th grade) also provide many jobs. Whole Foods, a market/grocery store specializing in organic, local, and natural foods and other goods (now a corporation) started in and is based out of Austin, and work in the food industry/farming/culinary arts also provides a surprisingly high amount of employment/income for many people.

Attractions
City Park provides 64 acres of beautifully maintained parklands for the residents of Lakeway and their guests.

Dragon Park, located at 702-A Dragon, is equipped with a playscape, swings, basketball court, volleyball area, and small athletic field.

Heritage Park, located in Lakeway at the intersection of Lohman's Crossing and Hurst Creek, is the home of the Spirit of Freedom Memorial and the new Heritage Center. The Spirit of Freedom Memorial is a monument to all veterans living in Lakeway or who have lived here in prior years. It is the site for the Lakeway Flag Day and Veterans Day Ceremonies.

Hamilton Greenbelt provides the citizens of Lakeway with several miles of wonderful hiking trails, which wander along Hurst Creek and Yaupon Creek. It is a fabulous place for family outings, walks and jogs, or walking the family dog (on a leash, of course).

The Canyonlands is the City of Lakeway's newest park. The Canyonlands is a 20 acre tract named for the scenic canyon running through the property. This Canyon is the upper reaches of the Rough Hollow Cove that is an major arm of Lake Travis to the west of the City. The scenery of the canyon from the overlooks along the rim trail is truly breathtaking, on a par with other great vistas in the State of Texas.

Education
The City of Lakeway is served by the Lake Travis Independent School District. This includes 4 elementary schools with 1 in construction, 2 middle schools, and 1 high school.

Also, nearby Austin is home to The University of Texas, one of the largest universities in the country. It is also the flagship institution of The University of Texas System — the largest state system of higher education in Texas.

Transportation
The nearest airport to Lakeway is Austin-Bergstrom International Airport (IATA code AUS), located 5 miles (8 km) southeast of Austin.