Caney City's housing reflects its origins as a Cedar Creek Lake community. The town is largely residential, with a mix of modest year-round homes and lakeside and lake-oriented properties common to the Cedar Creek Lake area. Many homes serve both full-time residents and weekend or seasonal owners drawn by the water. Lot sizes vary, with some properties offering lake views or nearby water access. The market is shaped by recreation demand from the Dallas–Fort Worth area, which sits within a couple hours' drive, giving the town a steady mix of permanent and part-time households.

Caney City is a small, largely residential town without distinct commercial districts. Its homes are spread along State Highway 198 and the local streets that lead toward the Cedar Creek Lake shoreline. The surrounding area is a patchwork of lakeside subdivisions, marinas, and small communities, with Malakoff to the south, Mabank to the north, and the larger Cedar Creek Lake towns of Gun Barrel City and Seven Points nearby. This gives residents a quiet home base within minutes of the lake's busier recreation hubs.

Life in Caney City revolves around Cedar Creek Lake. Boating, fishing, and lakeside recreation dominate the calendar, and the town's small population keeps day-to-day life quiet even as the wider lake area bustles with weekend and summer visitors. Residents shop and dine in nearby Malakoff, Athens, Mabank, and the lake's commercial centers, while the Dallas–Fort Worth metro sits within driving distance for larger-city trips. The result is an easygoing, water-oriented lifestyle with a mix of full-time residents and seasonal lake-goers.

Students in Caney City attend the Malakoff Independent School District, headquartered in the neighboring town of Malakoff a few miles south. The district serves the western Cedar Creek Lake area with elementary, middle, and high school campuses, and its athletics and activities anchor community life for local families. Higher education is available at Trinity Valley Community College in Athens and other regional institutions.

State Highway 198 runs along the eastern edge of Caney City, connecting it north to Mabank and south to Malakoff, where it meets other routes toward Athens and the broader East Texas highway network. Athens, the Henderson County seat, is about twelve miles east, and U.S. Highway 175 provides a corridor toward Dallas to the west. The town is primarily automobile-oriented, with the lake's boat ramps and marinas reached by local roads.

Cedar Creek Lake is Caney City's recreational centerpiece. The reservoir is among East Texas' most popular boating and fishing destinations, with excellent fishing for white and hybrid striped bass and good action for largemouth bass, catfish, and crappie. Marinas, boat ramps, and lakeside parks surround the lake, and the area offers camping and other water-based recreation. The town's shoreline location puts residents minutes from the water throughout the year.