Daily Briefing: 🌇 Austin's Boom vs. Room: Housing Hustle Meets HOME Initiative! 🏠

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Here’s what you need to know about CenTex CRE Today:

• Austin's HOME Initiative revolutionizes multifamily housing development 🏘️

• 90,000 new homes in Austin still trail regional housing demand 🌆

• St. Elmo's X-Change Center morphs into mixed-use haven 🏭

• Oracle's 50-acre land trade gifts Austin new east side park 🌳

Urban Development and Housing Projects in Austin

Missing Middle Housing in Austin and the HOME Initiative: What you should know ahead of the Council Vote on Dec 7.

Source: Reddit /r/Austin

Summary: The Austin City Council will vote on Leslie Poole's HOME Initiative on December 7th, which if approved, will alter the city's land development code to enable small multifamily units like duplexes and triplexes to be constructed across the city without costly site plans. The existing development code has exceptionally high fees for such developments, which makes them expensive, despite being more affordable than single-family homes in Austin. The HOME Initiative aims to correct this by aligning regulations with other Texas cities, thus boosting this type of development. 

Why this matters: The upcoming vote on the HOME Initiative could potentially spark the growth of more affordable multifamily housing in Austin, creating new opportunities for commercial real estate professionals in the city to broaden their portfolio and cater to a wider clientele seeking cost-effective housing options.

Demography map shows 90,000 new housing units wasn’t enough for Austin’s growth

Source: Austin Monitor

Summary: Austin's housing supply has seen significant changes over the past decade as the city became a top destination in the U.S., with 90,000 housing units added from 2010 to 2020. However, this growth was outpaced by surrounding communities, leading to Austin's share of housing in the five-county region accounting for less than half the total. The vacancy rate in both rental and ownership units decreased, indicating high demand and low supply. Despite a significant amount of new housing in construction, the city and philanthropic groups will still need to ensure affordability for lower and middle-income households.

Why this matters: Understanding the dynamics of Austin’s housing market, including supply and demand trends, will allow real estate professionals to strategically guide clients through buying, selling or investing decisions in both residential and commercial real estate.

Changing the X-Change Center in South Austin’s St. Elmo District

Source: Austin Towers

Summary: The St. Elmo region of South Austin, a neighborhood with a mix of warehouse-heavy industrial district and residential spaces, is seeing a revamp with the transformation of the X-Change Center on South Congress Avenue. The property, owned by Santa Monica-based Redcar Properties, is seeking a rezoning approval for vertical mixed-use to integrate both residential and commercial spaces, with the plan to maintain the industrial aesthetic in sync with the neighborhood's character. The proposed development would consist of an adaptive reuse of the larger existing industrial buildings for office, restaurant, and retail use, while smaller edge buildings would be demolished to make way for affordable residential housing.

Why this matters: The article provides Central Texas commercial real estate professionals with valuable insight into the evolving St. Elmo neighborhood, a growing hotspot for mixed-use development, which can be used to guide investment decisions and advise clients interested in diverse, up-and-coming areas.

Austin aims to redevelop St. Johns into 'inclusive and vibrant' community

Source: Reddit Austin Community News

Summary: Austin city government is planning a wide-ranging redevelopment of the St. Johns area with the goal of creating a more inclusive and vibrant community. The project is likely to involve substantial residential, commercial, and possibly industrial development, with potential implications for local real estate markets, public policy, zoning, and community engagement.

Why this matters: This large-scale redevelopment in St. Johns presents significant investment opportunities for real estate professionals, who can leverage this information to advise clients looking for emerging markets in the Austin area.

Low-income housing project, Cady Lofts, coming to Austin in March

Source: Newstalk Texas

Summary: Hunt Capital Partners has invested $16.5 million to develop Cady Lofts, a 100-unit affordable housing project in Austin. The project aims to offer studio apartments to low-income renters earning 30 to 60 percent of the Area Median Income (AMI). The project, set for completion in March 2025, is a partnership of SGI Ventures and the Housing Authority of the City of Austin.

Why this matters: Understanding the direction and momentum of affordable housing initiatives in Austin, such as the Cady Lofts project, helps commercial real estate professionals anticipate market trends and guide their clients towards lucrative investment opportunities.

Economic Growth and Prosperity in Austin

Austin prospers with the 2nd best U.S. economy for working-class families, per report

Source: Austin Culture Map

Summary: Austin-Round Rock has been ranked the second most prosperous economy in the U.S. for working-class families, according to a report by the Ludwig Institute for Shared Economic Prosperity (LISEP). The study evaluated the 50 largest Metropolitan Statistical Areas (MSAs) in the U.S, with Austin's population growth of 32 percent in the last decade playing a significant role in the ranking. The median weekly earnings of Austin workers, at approximately $1,126, and the fact that 66.5% of Austin households can afford their basic needs also contributed to the high ranking. However, the report also highlighted the challenges of the high cost of living for 33.5% of households.  

Why this matters: Understanding the prosperity of the local economy and its impact on the cost of living can help real estate professionals guide their clients towards beneficial investment decisions in the Austin-Round Rock area.

Public Amenities and Green Spaces

Austin, Oracle land trade for 50 acres of new parkland set to move forward

Source: Reddit User: hollow_hippie

Summary: Austin is set to acquire a new 50-acre park on the east side, as a result of a land trade with Oracle. This new development promises to enhance local amenities, contributing to the city's overall appeal.

Why this matters: This information can be used by commercial real estate professionals to emphasize the growing infrastructure and public amenities in East Austin, potentially attracting businesses and investors to lease or buy in this area.