Highland Village has a robust local economy, heavily supported by its affluent residential tax base and strong retail sector. Rather than hosting large corporate headquarters or manufacturing plants, the city’s economy revolves around consumer retail, local services, and dining.
Because it is a bedroom community, the majority of the city's working residents commute to employment hubs in Dallas, Fort Worth, Plano, or Frisco. The cost of living in Highland Village is higher than the national and Texas averages, driven almost entirely by the high cost of housing and property values. Despite this, the local economy remains resilient due to the high earning power of its residents and stable property tax revenues that fund excellent municipal services.