West Lake Hills' housing reflects its hillside, low-density character. The stock is predominantly single-family, with large, heavily wooded lots and custom and semi-custom homes set into the city's rolling limestone terrain. Some homes date to the 1970s and earlier and carry a historical character, while newer construction ranges from substantial estates to renovated mid-century houses. The city's steep topography and limited land area constrain large-scale development, preserving a large-lot, low-density feel. Buyers are drawn by the combination of Hill Country acreage, architectural variety, and the Eanes school district rather than by conventional suburban density.

Life in West Lake Hills is quiet, private, and decidedly Hill Country. Residents live on wooded, hillside lots with a sense of separation from the city, while remaining minutes from downtown Austin's employment, dining, and entertainment. The lifestyle is low-key and residential, oriented toward families drawn by the Eanes school district and professionals seeking a peaceful, large-lot setting. Shopping, restaurants, and services are found in the surrounding Westlake area and central Austin, keeping the city itself calm and uncluttered. It is an enclave lifestyle—spacious, scenic, and convenient—within one of Texas's fastest-growing metros.

West Lake Hills is served by the Eanes Independent School District, and it is the only city located entirely within the district's boundaries. Students are zoned to Eanes elementary schools—including Eanes, Bridge Point, Barton Creek, Cedar Creek, Forest Trail, and Valley View—and to Hill Country or West Ridge middle schools, before attending Westlake High School. The district's reputation is a primary draw for families, and the schools are woven into the community's identity. The city's small size means school attendance zones are local and closely tied to neighborhood geography.

West Lake Hills sits immediately west of downtown Austin, putting the central business district, the University of Texas, and the city's major employers within a short drive. The city's hillside streets connect to the major thoroughfares that link central Austin to the Hill Country, including the Capital of Texas Highway corridor along its eastern edge. Austin–Bergstrom International Airport is reachable across the metro area. Residents trade a short commute for the quiet, large-lot, low-density setting the city has maintained since its 1953 incorporation.

Recreation in West Lake Hills is quiet and low-key, fitting the city's residential character. Residents walk and hike the hillside streets and wooded lots, and the city's position at the edge of the Hill Country puts trails and green space within easy reach, including the Barton Creek greenbelt along its western edge. Nearby, central Austin's Zilker Park and Lady Bird Lake provide larger outdoor recreation, while the restaurants and shopping of the broader Westlake and downtown Austin areas are minutes away. For residents, recreation is more about an outdoor-oriented daily setting than organized attractions.