Jonestown's housing reflects its lakeside setting and Hill Country terrain. The stock ranges from older lakeside cottages and modest ranch homes to newer single-family residences on sloping, wooded lots with occasional lake views. Many properties sit on larger, irregularly shaped parcels that follow the contours of the shoreline and creeks, and some neighborhoods offer private or community lake access. Compared with denser Austin suburbs, Jonestown maintains a more spread-out, rural-residential character, with a mix of permanent residents and weekend homes along the north shore of Lake Travis.

Jonestown's residential areas spread across the hills and coves of the north shore, with neighborhoods clustered near Jones Brothers Park, along the Sandy Creek Arm, and off Farm Road 1431. Areas such as Northlake Hills offer elevated homesites with community lake access and Hill Country views. The city's older core near the original Jones settlement retains its early lakeside-cottage character, while newer subdivisions have developed on the surrounding ridges. Because the terrain is hilly and the shoreline irregular, neighborhoods tend to be small and loosely connected rather than grid-planned.

Life in Jonestown centers on Lake Travis and the surrounding Hill Country. The community retains the relaxed character of its origins as a lakeside retreat, with boating, fishing, and shoreline recreation woven into daily life. Jones Brothers Park draws residents and visitors to the water, and the city's parks host picnics, fishing, and community gatherings. Day-to-day shopping, dining, and services are found in nearby Lago Vista and Cedar Park, while Austin's employment and cultural offerings lie about 20 miles away. The result is a quiet, water-oriented lifestyle on the northern edge of the metro area.

Portions of Jonestown, including the South Jonestown Hills area, are served by the Lago Vista Independent School District, a district based in neighboring Lago Vista that also covers Point Venture and most of Lago Vista. Lago Vista ISD operates elementary, intermediate, middle, and high school campuses on its single-school-site model along the lake. The district's schools sit within a short drive of most Jonestown neighborhoods, and students throughout the area have access to nearby higher-education options including Austin Community College and the universities of the Austin metro.

Farm Road 1431 is Jonestown's main thoroughfare, running east-west through the city and connecting it to Cedar Park and the U.S. 183 corridor toward Austin, and westward toward Lago Vista and Marble Falls. Downtown Austin lies about 20 miles to the southeast, a commute made primarily by way of FM 1431 and U.S. 183 or Ranch Road 620. The area is car-dependent, with no fixed rail service, though Capital Metro's bus system serves parts of the broader northwest Austin region. Austin-Bergstrom International Airport is reached by crossing the metro area.

Lake Travis is the heart of recreation in Jonestown. Jones Brothers Park, a 32-acre park on the Sandy Creek Arm, offers boat ramps, shoreline access, fishing, and picnic areas and is a hub for lake activity. The reservoir itself supports boating, waterskiing, swimming, and a well-known bass fishery. The city maintains additional developed and undeveloped parks, and the surrounding Hill Country provides opportunities for hiking, birding, and scenic drives, with the Balcones Canyonlands National Wildlife Refuge within easy reach. Nearby Lago Vista offers additional marinas and parks along the same shoreline.