Hereβs what you need to know about Austin Real Estate today:
- Austin’s zoning reforms tackle a fierce affordability crisis; change is coming! π
- DEN introduces fast, innovative homebuilding to Austinβs thirsty housing market. π‘
- Airbnbβs Gebbia donates $1M to Austin nonprofits fighting homelessness. β€οΈ
- Frost unveils accessible loans for Texas’ low-income homeowners, easing ownership paths. π°
Housing Market Dynamics & Developments
Austin will try again to tame its housing affordability crisis with zoning reforms. Hereβs what you should know
Source: Texas Tribune
Article Summary: Austin, Texas is grappling with a housing affordability crisis, with pressures on renters and homeowners alike, as housing costs continue to skyrocket. The city is short of nearly 152,000 homes affordable enough for two-person middle-income households, with an even more dire shortage for families of four at that income level. The city’s land development code, which hasnβt been overhauled since 1984, is partly blamed for the crisis as it has stringent restrictions on the use of residential land. Austin officials are considering measures to combat the crisis, including allowing more single-family homes on smaller lots and taller apartment buildings near single-family homes, and removing mandates that require developers to designate land for parking. However, these measures have faced significant resistance, particularly from homeowners who fear change to the character of their neighborhoods.
Key Takeaways: The crisis in Austin’s housing market underlines the need for real estate professionals to be aware of, and advocate for, policy changes that can address affordability and availability issues, as this can have a significant impact on their client base and market scope.
DEN Launches in Austin, Texas, to Bring Streamlined Homebuilding to a Market in Need
Source: PR Newswire
Article Summary: DEN, a modern homebuilding platform, has launched BuiltBy DEN in Austin, Texas, in response to the region’s growing demand for housing innovation driven by higher housing costs, limited stock, and rapid population growth. BuiltBy DEN provides an all-in-one solution by managing the design, land selection, permitting process, project management, and construction of modern homes. This tech-enabled platform offers transparent pricing, real-time visibility, and partners with local Austin construction firms, Skelly Build and Carr Residential, to execute their projects. The process is expected to take less than a year, much shorter than the regional average of 1-2 years for home construction.
Key Takeaways:With the launch of BuiltBy DEN in Austin, real estate professionals in Central Texas have a new, efficient home-building solution to offer clients. This platform could be a game-changer for professionals looking to deliver value in a market marked by limited housing stock and high demand.
Austinβs Build-To-Rent Market Is Just Getting Started
Source: Central Texas Realty Review
Article Summary: The Central Texas real estate market continues to show robust growth due to an influx of out-of-state buyers and a strong local economy. Despite the challenges of the global pandemic, prices in both the residential and commercial sectors have seen significant increases. In the residential sector, the rise in remote work has led to a surge in demand for homes with home office spaces and larger outdoor areas. On the commercial front, despite an initial slowdown, the retail and office spaces are readjusting to the new normal with creative renovations. Investing in properties with the potential for conversion β such as turning commercial spaces into residential ones β is an emerging trend in the market. The farming sector is also experiencing a boom due to the increased interest in locally sourced food products.
Key Takeaways:Β This surge in Central Texas real estate creates opportunities for both residential and commercial real estate agents. By staying abreast of these trends, they can provide valuable insights to their clients, helping them make well-informed decisions. Advisors looking to grow their careers should also consider specializing in the emerging areas like the conversion of commercial properties into residential ones.
From TOD to ETOD: Implementing equity in Austinβs Transit-Oriented Development 
Source: Central Texas Real Estate News
Article Summary: Central Texas is currently experiencing a significant surge in the real estate market, driven largely by an influx of tech companies and individuals opting to relocate to the area. The residential, commercial, industrial, and land & farm real estate sectors have all seen notable improvements, with residential leading the charge. Prices for homes in the region have skyrocketed due to high demand and low inventory, pushing many buyers into competitive bidding wars. On the commercial front, new office spaces are being leased out quickly, despite the rise in remote work. Industrial real estate has also seen a steady rise due to increased need for warehouse and distribution centers. Land & farming properties are being secured by both local and international investors. Market experts attribute this growth to the regionβs strong economy, affordable living, and quality of life.
Key Takeaways:The current boom in Central Texas’s real estate market presents a plethora of opportunities for real estate professionals in all sectors. Understanding these market dynamics can help them stay ahead of competition, make strategic investment decisions, and provide valuable insights to their clients.
Tokyo Electron to sell US HQ property, find new space in Austin
Source: Austin Business Journal
Article Summary: Tokyo Electron to sell US HQ property, find new space in Austin “Tokyo Electron, a major semiconductor supplier, is planning to sell its US headquarters and find a new space in Austin, where it has been established for over 30 years. The company’s real estate strategy includes engaging renowned brokerage firms to facilitate the search. This move is expected to impact the manufacturing campuses and investment landscape in the region.
Key Takeaways: The relocation of Tokyo Electron’s headquarters to Austin signifies a potentially significant shift in the city’s commercial real estate market, signaling opportunities for real estate professionals to cater to similar businesses looking to set up or expand their footprint in Austin.
Financial Products, Investments, and Corporate Movements in Texas
Frost Progress Loans Allow Greater Access to Credit in Texas
Source: MortgageOrbΒ
Summary: Frost, a Texas-based large bank and subsidiary of Cullen/Frost Bankers Inc., has announced the introduction of the Progress Home Equity Loan. This financial product is designed to provide accessible and affordable borrowing options for low-to-moderate income homeowners. The program is applicable for owners of single-family residences, condominiums, and townhomes, provided their income does not exceed 80% of their county’s median family income. The loan is available for terms of 10, 20, 25, and 30 years, usually with no closing costs. The companion product, the Progress Mortgage, also targets borrowers within the same income bracket and offers lower closing costs, 100% financing, and no required private mortgage insurance.
Takeaway: This information is crucial for real estate professionals in Central Texas as it signifies a potential increase in the pool of buyers due to the increased accessibility of credit. They can utilize this knowledge to target a broader range of clients and offer valuable advice on new, accessible financial options.
Tax-Free Texas Will Welcome βFed Upβ Chicago Firms, Abbott Says
Source: Bloomberg
Summary: Texas Governor Greg Abbott is inviting Chicago firms to relocate to Texas to benefit from the state’s tax-free environment. The Governor has reportedly approached the CME Group Inc., the world’s largest futures exchange, which, along with other Chicago-based trading firms, has expressed its discontent with the rise in violent crime and potential tax increases in the city. Texas has become a popular choice for firms fleeing high-tax states, bringing in high-paying jobs and fueling the local real estate market. Cities like Dallas are experiencing an influx of financial firms, with Goldman Sachs and Bank of America among those establishing new campuses.
Takeaway: The potential arrival of more Chicago-based firms in Texas could further stimulate the real estate market in Central Texas, providing real estate professionals with numerous opportunities in residential, commercial, and industrial sectors as they can anticipate increased demand for housing and office spaces.
Philanthropy, Nonprofits, and Social Issues in Austinβs Housing Market
Billionaire Airbnb co-founder Joe Gebbia donates $1M to nonprofits addressing homelessness in Austin
Source: Austin Business Journal
Summary: Joe Gebbia, co-founder of Airbnb, has donated $1 million to Austin-based nonprofits that work towards addressing homelessness. This act not only demonstrates Gebbia’s commitment to giving back to his new city of residence, but it also brings the issue of homelessness in Austin, a booming real estate market, to the forefront.
Takeaway: Reading between the lines, Gebbia’s donation underscores the growing social responsibility of real estate influencers and the importance of acknowledging and addressing community issues such as homelessness, which can significantly impact the real estate market.
