There are three neighborhoods with significant gay populations, but otherwise, everyone seems fairly spread out throughout town and the mountains outside of town. So many folks want to live way out in the mountains, but unless you work at home, commuting is a real toll on the environment and something I wish more folks would stop and think about. Montford is very pricey these days and there are some rough streets still. This is a great area to live, although traffic on Merrimon can be thick. The neighborhoods around UNCA are particularly charming.
Beaver Lake is great for walks.