- Austin, Texas is facing an affordability crisis as housing costs continue to soar.
- In an effort to boost housing supply, the city council has approved a resolution to reduce the lot size requirement for homes.
- These upzoning measures aim to encourage the construction of multi-unit housing, such as townhomes, duplexes, and triplexes.
Once known for its affordability and unique culture, Austin, Texas has seen a surge in housing prices, making it one of the least affordable cities in the US.
In recent years, Austin has attracted major tech companies and their high-paid employees, leading to gentrification, skyrocketing home prices, and rising rents. However, the city’s restrictive zoning policies have hindered the construction of enough housing to meet the growing demand. This has sparked controversies and protests from anti-development advocates, leveraging the “keep Austin weird” slogan to resist new housing initiatives.
Driven by the influx of tech companies like Apple, Amazon, and Tesla, housing demand in Austin has skyrocketed over the last decade. The median home prices have more than doubled, while the median household income also increased significantly. The lack of available housing has contributed to the affordability crisis.
In an effort to address the housing affordability issue, the city council has approved a resolution that allows for the construction of multi-unit housing on smaller lots. The resolution promotes the development of “gentle density,” which includes townhomes, duplexes, and triplexes. Additionally, the city is reviewing regulations on building height, setback requirements, and lot coverage to facilitate housing construction.
Furthermore, Austin recently eliminated mandates for minimum parking requirements for new homes, which is expected to further reduce housing costs.
While opponents of these zoning changes argue that more dense housing would change neighborhood character, increase congestion, and displace longtime residents, research has shown that increasing the supply of market-rate housing can make housing more affordable for both middle- and low-income residents. City lawmakers believe that these measures will help middle-income homeowners and provide true benefits to those looking to buy a home and stay in Austin.
This decision comes after years of contentious debates between pro-housing advocates (“yes in my backyard” or YIMBYs) and activists opposing new development (“not in my backyard” or NIMBYs). Previous attempts to increase housing density through upzoning were struck down by a Texas appeals court. However, the current resolution signals progress in addressing the housing crisis and boosting affordability in Austin.
