There is suburban development in the Austin area, but most of it is taking place in the suburbs of San Marcos, Buda, Kyle, Cedar Park, Round Rock, Bastrop and Leander. Sounds like a lot, but that's all outside the city limits and up to 30 miles away from Austin. There is also suburban developments going on within the city limits, but most of it is actually infill. Basically filling in areas that have already been surrounded by the city limits for years.
Sunset Valley, Texas is one example of this. It's a tiny, 1 square mile "suburb" that's located within the city limits of Austin in Southwest Austin. Since 1992 land there has been developed into over a million square feet of retail, including the largest Academy store in Texas and a 200,000+ sq foot Home Depot. The small town only has 330 people, but is expected to rise to about ~650 or so with new houses being built on what used to be one of the last farms in Travis County. It's actually surrounded by Austin's city limits on all sides with the city limit being miles away. There's actually one spot in Sunset Valley where you can see downtown from one of the neighborhoods.
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