Add drastically higher development fees onto your list of things that make buying a house in Austin so expensive.
A Texas A&M University Real Estate Research Center study found that Austin’s per-unit fees on new development were 187% higher than Dallas, Houston, Fort Worth and San Antonio. The suburbs aren’t much cheaper as per-unit development fees in Austin are still 127% higher.
According to ABoR CEO Emily Chenevert, high development fees charged by the city are cause for concern around solving the city’s ongoing housing crisis.
“This report confirms what those in the real estate community have known for a long time,” Chenevert said. “Development fees are drastically higher in Austin than most other cities in Central Texas and major metro areas in Texas. This is a huge barrier to building homes and a significant concern considering we are in a housing supply crisis across the region.”
A closer look
The report found that in the Austin-Round Rock metro a suburban unit was charged 80.4% or about $8,000 more than the other five largest metros in Texas. Similarly, infill units—new housing in already developed areas—cost 186.8% more in Austin than on average for Texas.
Those numbers make up 3.4% of the 2021 median housing price of $536,331 per suburban unit, or 7.7% per infill development unit.
What does that mean for buyers?
Steep fees drive up the cost for residents and can have a big impact on first-time buyers. The average Austinite earning the median household income in 2019—$54,871—would be able to afford a $204,556 home loan, of which development fees would make up about 20%, according to the study.
The Austin-Round Rock median house price hasn’t been $205,000 since February 2013, which is less than half of the median price in 2021. Austin-area housing has increased 22%, about $100,000, since the study was conducted.
“These findings, although disconcerting, are unsurprising,” Home Builders Association of Greater Austin CEO Taylor Jackson said. “We need to course correct on how the city of Austin handles home building and time is of the essence.”
Should renters be concerned?
Managing editor for Rent.com Brian Carberry said the renter market tends to follow the housing market, albeit on a few months' delay. Carberry said not only did Austin have less apartment inventory in May 2022 than it did in May 2021, but most new complexes are being built in high-demand areas, meaning people are still being priced out.
“A lot of that is just due to there's just so much demand for apartments and the housing market does play into that a little bit because people are being priced out,” Carberry said. “Your younger millennials, older Gen Z looking for their first homes are in a position where they're unable to afford something because the price has gone up so high and now mortgage rates are so high, it's just not a sustainable option for them right now.”
Is there a solution?
In the study, the Austin Board of Realtors and the Home Builders Association of Greater Austin included joint recommendations for local policymakers:
- Increase transparency in development fees, as a lack of information limits the ability to understand the full impact of the fees.
- Implement development process improvements, including reviewing fee structure, setting goals for housing approval and adopting successful models from similarly-sized cities.
- Right-size development fees, which will become critical as Austin’s urban population grows and infill development increases.
“The National Association of Home Builders 2022 Priced Out Index reports that for every $1,000 increase in the price of a home, whether it be from market forces or development fees, 791 households are priced out of the Austin-Round Rock MSA,” Jackson said. “We urge Austin’s leadership to act and act now or we risk becoming a wholly unaffordable city to build or buy a home in.”
Matias Segura swept his hand across a whiteboard in his office at AISD headquarters, describing how an entrance vestibule works. It might remind you of a sally port at a prison. The vestibule is designed to protect our children from the active shooters who have plagued our nation since Columbine in 1999.
“You start with the signage,” he said. “You know exactly where the entrance is, and that’s for first responders too. We really want to make sure we keep up with visitor patterns. If they come in, they go through a system. Driver’s license, background check, which takes about a minute. We have a software system.”
AISD Director of Operations Matias Segura explains the overall school construction and what the entry vestibule looks like. (Rich Oppel)
The vestibule has two sets of locked doors. The exterior set has an audio-visual intercom, operated by a desk officer who has a view of visitor parking, the building approach and the vestibule. If allowed in, a visitor is buzzed through and then faces questioning and clearance by the desk officer. The visitor is given a card-reader pass. If a second person attempts to “trail in” behind another visitor, he is trapped in the vestibule until his status is determined. The second set of doors, into the main school building, remains locked and shut. It is open when students arrive in the morning.
Thus, the days of walking into the school, maybe waving at the principal’s executive assistant and strolling off to the cafeteria for lunch with your daughter are gone, a relic of a more bucolic time when “active shooters” were never imagined. But one must ask, what do we give up for greater safety?
Austinites remembered the Uvalde shooting victims in a vigil at the Texas Capitol in May. (Tony Fuentes)
Some critics argue that we are at risk of losing traditional values in the redesign of schools, courthouses, hospitals, churches and shopping centers. Writing in The Washington Post, architecture critic Philip Kennicott said the nation’s gun culture “threatens an essential precondition for democracy: its public space… Ideals of openness, flow, transparency and access will no longer be sustainable.”
Segura contemplates the question. At 41, he has held his job as AISD director of operations for four and a half years. Prior to that he was a consultant who led the team to build Austin’s new courthouse. His Austin and Texas roots are deep. He was born here, graduated from Bowie High, and went off to Lubbock to earn a degree in civil engineering from Texas Tech. He returned to secure an MBA at the University of Texas at Austin. He and his wife Joy Burson-Segura have two daughters who attend AISD schools. Segura said he and his operations team love AISD, care deeply about their work, and want citizens “to see us as partners.”
Back to what we lose in hardening the schools.
Segura says, “We think about students’ health. Having daylight, bringing light into a hardened facility, being able to access outdoor learning areas, (which is) hypercritical, especially in what we have learned in the pandemic.” Segura doesn’t like the idea of moats around schools (exotic, expensive) nor of classroom bomb shelters (what would teachers and students think about their looming presence?), efforts that are being tried elsewhere.
Healthcare workers receive the Moderna COVID-19 vaccine at the AISD Performing Arts Center in Mueller in 2021. (Jordan Vonderhaar)
AISD must juggle school security with the historic use of our schools for other purposes, such as voting, PTA-PTO meetings, community fairs, and, more recently, COVID-19 testing, vaccinations and food distribution. AISD does not want to end those uses, so the challenge is to design schools with separate rooms or places for those uses.
Clearly, Segura has thought about balancing conflicting equities. For him, it’s not all locked doors and blank brick or concrete walls. He stresses the importance of building a culture that includes shared responsibility of all school employees where, for example, a custodian could ask a stranger whether they have a visitor’s badge. All staffers should be well-trained in security measures, knowledgeable about new technology, and committed to working as a team to protect students, teachers and others. “We are working very, very hard on the culture,” he says. “Also, we need (financial) investment if we are going to move the needle.”
Kennicott, the Washington Post critic, quotes the late Sen. Patrick Moynihan, a sociologist and New York Democrat, who said, “Architecture is inescapably a political art, and it reports faithfully for ages to come what the political values of a particular era were. Surely, ours must be openness and fearlessness in the face of those who hide in darkness.”
But that was in 2001. What messages will Austin’s new public schools convey to future generations about our 2021 political values?
“First and foremost, these are education spaces that belong to our community. Our objective is to create incredible learning experiences for our students and at the same time ensure that the students and staff are safe.” He said he wants people to view schools as “inspired,” places where they would want to send their children. “Great things are happening in that space,” and that teachers see a place where they want to work and where they feel safe.
Voters in AISD will decide Nov. 8 on a $2.44 billion bond package to provide “funding for improvements to enhance safety, centers on equity, benefits every campus, and addresses affordability,” according to AISD officials.
Ever had sushi delivered to you on a conveyor belt or tried Ukrainian borsch?
If you're looking for a restaurant that shakes up your dinner, try one of these newly-opened options.
Conveyor belt sushi
For a fun, interactive twist on your typical sushi dinner, head to Kura Revolving Sushi Bar. Upon sitting down, you’ll have a conveyor belt to one side, where you can pluck whichever plate piques your interest, or a screen that allows you to order plates a la carte. You’ll pay by the plate, which tends to be less than a few dollars each, and win prizes if you hit the right milestones.
Korean Egg Toast
Serving all things egg, Egg Bomb opened earlier this month at 808 North Lamar Blvd., taking over the former Ola Poke location. Egg Bomb specializes in Korean egg drop sandwiches, with toppings like cheese, caramelized onions, avocado, salmon and condiments; “Egg Tots,” or fries with eggs and toppings, as well as coffee and sides. You can also find egg toast and squid ink hotdogs at Oh K-Dog.
Tortas at La Plancha
With a desire to fill the torta-shaped whole they saw in Austin’s fare, co-owning couple Mariha Hinojosa and Julian Richmond opened La Plancha, 1701 E. Martin Luther King Jr. Blvd, on July 1. The Mexican sandwiches are served on a bolillo bun with toppings including avocado, barbacoa, queso fresco, refried beans, cheese, pickles and salsa. There are other options: Think papas fritas, street corn and mini-churros.
Ukrainian cuisine to-go
You can take your chicken Kyiv to-to at new takeout-only restaurant U-Cuisine, 5610 N. I-35, which opened in mid-June. Ukrainian chefs and owners Alla Shelest and Mariana Shelestiuk said they are trying to bring a taste of their home country amidst a difficult time in history. Try the chicken Kyiv, a dill and parsley-stuffed chicken breast rolled in breadcrumbs; borsch, a burgundy beetroot soup; Holubtsi, beef and pork cabbage rolls; and lviv syrnyk, a chocolatey raisin cheesecake.
- Austin ranks #5 in top foodie cities in US - austonia ›
- For Austin dog lovers, the Conscious Pet transforms kitchen scraps ... ›
- Austin food under $10, cheap eats that are delicious - austonia ›
- Complete guide to Austin FC's Q2 Stadium food options 2022 ... ›
- From Mexico City, machetes have made a spark in the Austin food ... ›