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Page 25 AUGUST 2016 • VOLUME 21 • ISSUE 3
Area growth causing pain for residents By Riki Markowtiz
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or the fifth year in a row, the AustinRound Rock metropolitan area has been the fastest growing metro area in the U.S., according to the Census Bureau. The Austin American-Statesman reports that in the late 2000s, Austin was the last city to go into the economic recession and the first one to make it out. Based on steady growth and financial stability, it’s hard to see any downside to living here. The fact is, there is no way any city can sustain ongoing growth unless there is a simultaneous effort to put resources into schools, housing, transportation and infrastructure. Austin must be an anomaly because in many
of these areas the city has been struggling to keep up, and yet you wouldn’t know it from population forecasts.
Cost of Housing and Affordability The consistently rising population in Austin over the past decade has caused home prices to skyrocket. Aaron Farmer, Austin Board of Realtors (ABoR) president, says, “One of the growing pains I see is people coming into town and getting sticker shock on some of the housing prices here.” As a result, new and existing residents are getting pushed further and further away from Austin proper. And it’s not just new residents who are feeling pressured to head to Dripping Springs, San Marcos or Cedar Park, but also families who have been living here since the 1970s or 80s, not to mention those whose family’s roots were planted here before the early 20th century. The major cause of residential displacement in Austin is rising property taxes, says Farmer. A family that bought a $50,000 home in the 1990s are watching their property jump in value, to as much as $500,000 in the twentyteens, depending on the neighborhood. That’s great news if the family had plans to put their home on the market. Unfortunately, many Austin residents are happy where they are and would prefer to stay put. But for those earning $30,000 per year, a disproportionate percentage of income ends up going toward paying property taxes. “That’s how people are forced to leave their home,” says Farmer. There’s no question, “rising property taxes are one of the biggest downsides of population growth.”
Low Housing Inventory Austin likely would not have such a big problem with skyrocketing home prices if the city had a plan in place to respond to population growth. We could have been adding more housing back when numbers began ticking upwards. Right now, everyone is excited about CodeNEXT. It’s an initiative to revise the Land Development Code, which determines “what can be built, where it can be built, and
how much can (and cannot) be built,” according to the City of Austin website. The master plan was approved in 2012 and if the first draft is released on time, it will lay out a plan for adding more housing and dealing with traffic issues. “The city needs to rapidly increase inventory of homes, all sizes and all types, including starter homes and apartments,” says Farmer. Almost any other city would simply buckle under the demands that Austin is constantly facing. But Austin perseveres. “Despite the ongoing housing shortage and affordability challenges impacting our region, population growth and housing demand continue to drive home sales upward,” says Farmer. In fact, 2015 was a record-breaking year in the five counties that comprise Austin-Round Rock. This past July, calculations showed that the metro area is already on track to surpass 2015 numbers, which translates to an even stronger economy.
Transportation & Infrastructure Fail For Austin’s transportation problem, which is just one piece of the city’s outdated infrastructure, there is no quick fix. Brandy Guthrie, ABoR past president, points out that the area east of Austin has a lot of development potential. Once builders break ground, the money spent on land, permits, licenses, and construction will quickly get absorbed and spread around to developers, investors, and buyers. Transportation, on the other hand, seems to be on a “one step forward, 10 steps back” trajectory. And costs fall squarely on taxpayers’ shoulders. Building new roads and improving those that exist is an extraordinarily slow and contentious process. “We know that we did not plan for roads,” says Guthrie. “There was no long-term vision for population growth. In fact, one past council had the mentality, ‘If you don’t build it, they won’t come.’ Meanwhile, as residents wait to vote on a $720 million transportation bond, another 80 families just unpacked their U-Haul. Folks are
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Upcoming Events Wednesday, August 17th Belttera: Monthly Home Tour Belterra - 9 a.m. Wednesday, August 17th Bryson: Monthly Home Tour & Free MCE Class - Bryson - 9 a.m. - 12 p.m. Wednesday, August 17th CRS Austin: Bi-Monthly Meeting Westwood Country Club - 11:30 a.m. to 1 p.m. Wednesday, August 17th AYREP August Happy Hour Green Light Social - 5:30 -7:30 p.m. Thursday, August 18th WCR Business Resource Meeting Estancia Churrascaria - 11 a.m. - 1 p.m. Saturday, August 20th Brohn Homes: Edgewater Grand Opening Event & Model Home Tour Edgewater - 12-4 p.m. Wednesday, August 24th ABoR: TREPAC Wine Tasting Rock Rose Hall - 6-8 p.m. Thursday, August 25th Bryson: Splish Splash REALTOR Bash Bryson - 5:30-7 p.m. Wednesday, September 7th AMBA Monthly Meeting Austin Country Club - 11:30 a.m. to 1 p.m. Wednesday, September 14th WCREALTORS: TREPAC Bowling TBD - 3:30 p.m. Wednesday, September 14th HBA Elected Officials Appreciation Night and BBQ Bash Phillips Event Center - 6-9 p.m. More at www.myRealtyLine.com