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Homes sales in the city of Austin decreased by 33.1% in April when compared to last year, showing the impact of the coronavirus pandemic and the local stay-home orders that took effect in late March, according to the Austin Board of Realtors.
<p> While the number of sales were down, median prices increased 12.3%—to $421,000—compared to April 2019.</p><p>"It could have been much worse," ABoR President Romeo Manzanilla said in a press release, adding that home listings and showings are already on the rise. "We're hopeful this growth will continue in the coming weeks and months."</p><p>In the Austin metro area, the change was significant but less extreme, with home sales down 21.6% over April 2019 and median sales price up slightly—3.2%—to $325,000.</p>
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(STG Design)
Welcome to Austonia, a new, locally owned news company reporting on news, business, and politics in Austin. Like what you see? Sign up for our daily newsletter to get our latest stories in your inbox.
Consider the elevator. Commercial ones are typically between five and eight feet square, according to the Elevator Lab, meaning only one person can be inside while also observing social distancing guidelines. In a busy office building, with rush hour elevator traffic at the start and end of the workday, this poses a challenge. During a pandemic, it gets worse.
<p>"Man, this one's been really tough," said Tim Hendricks, senior vice president of Cousins Properties' Austin office, during a webinar hosted by the Austin Chamber of Commerce last week. </p><p>Elevator protocol is just one of the many questions facing businesses as they decide whether to reopen their offices at limited capacity, now that the governor has <a href="https://www.texastribune.org/2020/05/18/coronavirus-updates-texas/" target="_blank">given the green light to do so</a>. Other concerns include temperature checks, one-way foot traffic, liability and <a data-linked-post="2645716285" href="https://austonia.com/Coronavirus/austin-coronavirus" target="_blank">masking requirements</a>.</p><p><br/></p><p class="shortcode-media shortcode-media-rebelmouse-image">
<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzI5NTk5Ny9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyMjE0MDI3Mn0.OjYnWzxxDSHHA3eF7Zse_4HmYth3VY9xS8rozsOThDI/img.jpg?width=980" id="825b2" class="rm-shortcode" data-rm-shortcode-id="5aff1daed74627c2d16af02cd307dd94" data-rm-shortcode-name="rebelmouse-image" />
<small class="image-media media-photo-credit" placeholder="Add Photo Credit...">(STG Design)</small></p><p><br/></p><p>Cousins, a real estate firm, surveyed its Austin tenants—some 185 businesses with offices in the central business district and at the Domain—about their reopening plans and heard a wide range of responses. "We do think that the majority of our customers will be phasing in in some kind of staggered process," Hendricks said during the webinar. </p><p>This is the case for STG Design, a commercial architecture and interior design firm. Its Austin office is home to 80 employees and will begin a phased reopening June 1, associate principal Paul LaBrant said. </p><p>Initially, employees will return to the office at a scheduled time to clean their desk and clear out any personal items. In mid-June, employees will be able to return based on their assignments. "It is very much on a voluntary basis," LaBrant said. </p><p>In preparation, STG is marking the floor with arrows to help staff adjust to one-direction foot traffic, setting up sanitation stations and blocking off certain desks to allow for social distancing. The company will also offer employees virtual walkthroughs of the updated office. "So they're not having to figure it out once they get there," LaBrant said. </p><p>As STG prepares for its own reopening, its staff is also considering how this pandemic will change office design—and is working with its clients to help them make the shift. "The workplace of today is not going to work for the workplace of the immediate tomorrow," LaBrant said. </p><p>He foresees offices becoming more limited in both size and scope—offering a hub for innovation and meetings—as teleworking becomes more routine. Part of this change, he said, is because employees with children will likely be unable to come into the office for many months as schools and camps continue to adjust their operations. But it is also the result of new priorities.</p><p><br/></p><p class="shortcode-media shortcode-media-rebelmouse-image">
<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzI5NjA1Ni9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTU5MjM4MzE5N30.m8za6eRpCiLJKXVSddbI2jSbclhmGgnz9UEJpXqgyGI/img.jpg?width=980" id="b5038" class="rm-shortcode" data-rm-shortcode-id="b15d7c7193e48bb66f0f1e62ced3a98b" data-rm-shortcode-name="rebelmouse-image" />
<small class="image-media media-photo-credit" placeholder="Add Photo Credit...">(STG Design)</small></p><p><br/></p><p>"The American work culture has always been work first, family second," LaBrant said. "Now I think we are forced into seeing that our lives matter as much as the work that we do, and there's going to be a balance there." </p><p>While STG will begin its reopening next month, some of its local clients are planning to stay home through November—"just because they want to see how other companies do this, and they're still seeing productivity … while their teams are working from home," LaBrant said. </p><p>For those companies that do reopen in the coming days and weeks, communication will be paramount. </p><p>"The best defense for liability for your business or your company is going to be a well-crafted, comprehensive return-to-office plan that is vigorously followed at your place of business," said Pamela Madere, a real estate attorney at Jackson Walker's Austin office, during the same webinar.</p><p>Such a plan—if developed in accordance with CDC guidelines—will help employees know what to do and protect employers from lawsuits. It may also come in handy if COVID-19 cases spike.</p><p>"We really want to be ready for a future outbreak," Madere said. "We know it's coming at some point." </p>
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The view from 360 Nueces Street. (David Powell)
Welcome to Austonia, a new, locally owned news company reporting on news, business, and politics in Austin. Like what you see? Sign up for our daily newsletter to get our latest stories in your inbox.
Elevator wars. Cramped life on a balcony. Darkened bars and restaurants. No deliveries to your condo. Generational differences over latex gloves, disposable wipes and social distancing. Ready to kill for a beer on a restaurant patio. Yes, those who live in Austin downtown's high-rises are stressed in the midst of the coronavirus pandemic.
<p><br/></p><p>Yet the downtowners believe this time will pass and are optimistic about the future of the heart of our boomtown. For one thing, downtown's density—when closely examined—seems less of a threat than elsewhere because it is highly affluent and not all that dense. </p><p>If the urban dwellers yearn for the old days, it's not for their previous lives in the suburbs, but a distant time—only six weeks ago—before Austin shut down. </p><p>Ours is a city revered for its outdoors life, entertainment and food scene. Tens of thousands are drawn to our streets and trails every week. Now our sidewalks are silent as we cautiously creep our way back to what used to be. </p><p>Twelve years ago, Forrest Preece and Linda Ball, who had lived in a comfortable, 3,000-square-foot house with a lush and sprawling backyard overlooking Shoal Creek, moved to 360 Condos at 360 Nueces Street. They were in search of a simpler, more convenient life. </p><p>Until the city's shelter-in-place expires, they are largely self-isolated in their 1200-square-foot apartment and small balcony. </p><p>"Well, I didn't have any regrets until now," says Preece, a retired advertising agency owner who is 73. "Before this, if we wanted vegetation, we'd walk three blocks south and be on the <a data-linked-post="2645676142" href="https://austonia.com/Coronavirus/parks-to-close-for-easter-weekend-and-maybe-longer" target="_blank">hike-and-bike trail</a>. We are scared to be over there now. There's not a whole lot of respect for social distancing going on." </p><p>Austonia checked in with a dozen people—residents, downtown leaders and an urban thinker—to gauge how living in a high-rise during a pandemic differs from the lives of other Austin residents. For the most part, the people who live high in glass and steel say there's no material difference between the pressures of the pandemic on urban and suburban life. They take great pride in downtown Austin, are committed to sticking out the virus and know things will get better. </p><p>Coronavirus has been clearly identified with population density and poverty. The nation's hotspots are New York City, with a population density of 26,000 per square mile; Detroit, 4,900; Chicago, 12,000; and New Orleans, 2,300. All have significant pockets of poverty, and those places are where COVID-19 stalks the streets. </p><p>Is downtown Austin dense? According to the Downtown Austin Alliance (DAA), an estimated 15,500 people live within the 1.67 square miles bounded by Martin Luther King Blvd. on the north, Lady Bird Lake on the South, Lamar Blvd. on the west and I-35 on the east. That would give downtown a density of 9,300 per square mile. </p><p>But that's only part of the picture. It's not clear how many of Austin's downtown residents are part-time. But from discussions with real estate agents and others, it appears that a significant number treat our city as their second home. So that eases density. </p><p>Also, downtown residents are wealthy. Their median household income is $110,303, compared with the median of $67,462 for Austin as a whole, according to the DAA. </p><p>They say the wealthy control their own destiny, and it seems they also control their own density. Plaza Lofts at 5th and Guadalupe, where Nina and Frank Seely live, has 55 units. Nina Seely says only about 35 people are in the building at any one time. </p><p>The Seelys moved from The Ridge at Barton Creek in 2018. Plaza Lofts is two blocks away from 360 Condos, so close that Nina can wave from her balcony to her friend Forrest Preece on his. </p><p>Seely sells to wealthy buyers who prefer confidentiality. Often, they are seeking a second home downtown. She says few of her clients even mention the virus and density. "If they do ask me about that, I say you're going to have to live your life as you want to. Living in a condensed area downtown, people are behaving themselves."</p><p>Emily Zipp and Andrew Fischer, both 29, share Fischer's unit at 360 condos. For them, the pandemic arrived with a few bearable annoyances. The pool, lounge chairs and grills on the recreational deck were closed by building managers, and Zipp misses cooling off in the pool after a day's work or gathering with friends on the weekend. </p><p>"Elevators are a very hot-button subject," says Zipp, a 2013 graduate of St. Edward's University who is an account executive for Sprout Social, a Chicago-based social media software management company.</p><p>"We only have four, one is for freight, and it seems like one is always broken down. If you're trying to go out between 5 and 7 p.m., the waits can be as long as 10 minutes." The pandemic heightens elevator chagrin: "If someone is in it, I won't get in. I'll wait for the next." </p><p>Not all agree that the denizens of downtown are so well-behaved. One older person complained about young people and the homeless not wearing masks or keeping their distance on the streets, trails and parks. He asked not to be named to avoid being called out by homeless advocates. </p><p>Zipp says she carries a mask with her when she's out for a run, or when she is in the public spaces of her condo building. If she approaches someone in a hallway, she puts on the mask. She doesn't engage in 360 Condo's online chat room. Arguments prevail between those who agree with the condo's restrictive policies, such as requiring food delivery pick-ups to be in the lobby, and those who see them as over the top. Zipp agrees with the policies, though she misses the pool. </p><p>Rikki Jump, 29, head of author strategy at Scribe Media, rents a one-bedroom unit at The Catherine, a luxury high-rise apartment building at 214 Barton Springs Road. She is across Lady Bird Lake and less than a mile from her friend Zipp. In 2013 Jump moved to Austin from Springfield, Mo., where she received a bachelor's degree in professional and technical writing at Missouri State University. </p><p>"I already went over the precautions they're taking" at The Catherine, she said. All common areas have been closed and only two people are allowed in an elevator at any one time. Jump adds, "but overall the vibe has been pretty tense and eerie. No regrets about living downtown! I'm obsessed with it and don't see myself making a change for a long time." </p><p>"I do not love working from home," says Jump. "It makes me feel very lethargic and sluggish." She's getting in walks with her dog on the hike-and-bike trail. "I would kill to be enjoying a beer on a restaurant patio with my friends. I'm single, so that's been pretty lonely." </p><p>Among the part-time dwellers of downtown Austin are David Powell and Vicki Weber, whose main home is in Tallahassee, Fla. David is a 1973 graduate of the University of Texas-Austin and a former editor of the Daily Texan. He now sits on the dean's advisory board of the Moody College of Communication. </p><p>David and Vicki moved into their condo on the 20th floor of 360 in 2008. Vicki, 67, is a retired lawyer. David, 69, is of counsel to the law firm where they both worked, and says he is mostly retired. These days, they come to Austin less frequently than they once did, but stay longer—usually for a week. </p><p>When the coronavirus struck, they put off a scheduled March visit and carefully watch developments from afar.</p><p>"It will be very interesting to see what happens post-pandemic," says David. "Given the economics, and possibly some potential social changes, I will be interested to see whether Austin continues to boom. Maybe it will; maybe it won't. It's becoming harder and harder to see it going back to where it was." </p><p>A few blocks away at Northshore Apartments, Judy and Doug Moss, who both are 72 years old, are moving out to spend more time at their home on Lake LBJ in Granite Shoals, 55 miles to the northwest. Moving in from Barton Creek two and one-half years ago, the Northshore rental was an experiment in downtown living—and it worked well. </p><p>"We were on the 21st floor overlooking Auditorium Shores. It was fun to be out on the balcony with a glass of wine and enjoying Austin," says Doug, a land developer. "We have had all the fun we can stand. We're glad we did it." </p><p>However the couple found themselves spending more and more time at the lake. They are considering buying an Austin condo to keep a foothold in town. "We might buy a condo," says Judy, a retired real estate broker. "We're kind of thinking we might. We are not going to react at this time with the COVID-19."</p><p>The residents' confident views were validated by Steven Pedigo, a professor of practice and director of the Urban Lab at UT's LBJ School. </p><p>"Yes, density can play a role," he said in an interview. "But as you can see in New York the reality is the <em>type of density</em>. There is a more affluent density vs. poor density. Hit the hardest have been the areas of less-affluent density, where you have large families in one space, and frontline workers who may not have had protection from COVID-19." </p><p>Reports from New York, which accounts for a third of coronavirus deaths, confirms that the most severely impacted neighborhoods were in the Bronx and poor sections of Brooklyn and Queens. </p><p>Pedigo, who advises cities on growth strategies, says Austin shouldn't "pivot" in its longstanding policies of encouraging density. People are attracted to Austin by its amenities, and those things should be enhanced with investments in transportation, parks, sidewalks, public infrastructure and active mobility. Those outlays will improve life for all, he says, including those in less-affluent, high-density areas. </p><p>"At some point we'll get over the pandemic," says Pedigo. "When we get to 3 million people in 10 years, if you haven't invested in transportation, you'll have a stuck economy." </p><p>How does he see Austin's future post-pandemic? "I'm pretty optimistic." </p><p>The people we interviewed agreed. They uniformly were optimistic, with most believing that Austin's reputation and appeal is so strong that the pandemic will only cause temporary economic dislocation. </p><p><em>Editor's note: Vicki Weber's last name was changed from the original to reflect her maiden name.</em></p>
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(Austonia staff)
It was already going to be a weird year at TCAD. (Austonia)
Before the coronavirus pandemic arrived in Austin, the Travis Central Appraisal District was preparing for its busy spring season, when appraisal notices are mailed and protests filed.
It was already going to be a weird year. After TCAD received a cease-and-desist order from the Austin Board of Realtors last May, preventing access to home-sales price data, Chief Appraiser Marya Crigler announced in February that the district would not re-appraise residential properties in 2020.
<p>This was a big deal in a county where 147,039 property owners protested their appraisal values last year, per TCAD data, and the median appraised home value increased more than 6% in the city of Austin, per budget documents. </p><p>New policies were also set to take effect. Most protests are resolved informally, meaning a property owner meets with an appraiser in an effort to resolve their concerns. Last year, TCAD handled all informal protests electronically, but some property owners were upset that there wasn't an in-person option—this year, the district had decided to resume in-person meetings.</p><p>But because of the pandemic, those plans have changed again—anything that can take place by telephone or online has shifted—and TCAD is preparing for a possible onslaught of protests. </p><p>The protest filing season began April 13 and will continue through May 30. Crigler said it's too early to tell if protests will drop this year, either because of the pandemic or due to the fact that homes will not be re-appraised. </p><p>"The load is light at this point, but that's to be expected," she added. "We see that every year." </p><p>But Crigler urged property owners to file their protests early, especially if they preferred to speak with an appraiser on the phone.</p><p>Another change to the protest process—already in place before the pandemic—is a new waiting period between when a protest is filed and when TCAD responds with an offer. The TCAD board made this decision in January in an effort to settle cases in a fairer and more uniform way. </p><p>"I want to make sure that a property owner doesn't get a better deal on Monday talking to Appraiser A than they might have gotten if they came in on Tuesday and talked to Appraiser B," Crigler said. </p><p>The appraisal district is also looking into how to scale its ability to handle the next stage in the process—the appraisal review board—on the phone or online, as opposed to in person. Hearings are set to start in June.</p><p>So far, the state has not issued any emergency rules affecting appraisal districts, although some jurisdictions <a href="https://communityimpact.com/houston/katy/coronavirus/2020/04/21/fort-bend-county-commissioners-court-approves-resolution-supporting-taxpayer-relief/" target="_blank"><u>have</u></a> <a href="https://www.google.com/search?q=news4sa&oq=news4sa&aqs=chrome..69i57j0l4j69i60l3.1481j0j9&sourceid=chrome&ie=UTF-8" target="_blank"><u>lobbied</u></a> for them. </p><p>What will not be affected by the pandemic is appraisal values, because the notices sent this spring are intended to reflect market value as of Jan. 1. But next year's might be.</p><p>The impact of the pandemic on home sales has yet to be seen. The ABoR report from March showed little change, but ABoR President Romeo Manzilla <a href="https://austonia.com/home-prices-up-after-strong-start-in-march-but-realtors-braced-for-what-happens-in-april" target="_self"><u>told Austonia</u></a> that would likely change. "Everything that was in the pipeline closed," he said. "We will see in April the true effect of the pandemic." In an April 22 email newsletter, Wendy Jansky-Serra of Realty Austin wrote that overall market activity is down by about 30% compared to last year. </p><p>Crigler's team is always looking ahead to the next appraisal season. </p><p>"We have not heard that there has been any significant price reductions in any areas, but we certainly have heard that there is not a lot of volume or activity going on right now," she said. "We will be keeping a very close eye on it so that we can appropriately adjust appraisals as necessary.</p>
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Adobe
While some renters are postponing moves, others are taking advantage of lower rents and other specials offered as property owners try to adapt to the current marketplace. (Adobe)
Peter Northfelt is graduating from the University of Texas-Austin with a master's degree in advertising this May. Before the coronavirus pandemic, he planned to move to Los Angeles. Now, he's moving back to Phoenix, where his family lives, because many advertising companies aren't hiring and he's unable to support himself on unemployment benefits alone.
"I was graduating anyway, so I was going to move," Northfelt said. "It's just a matter of, the world was really big and then the world became really small."
<p>Northfelt is among many Austin residents whose relocation plans have been impacted in some way by the pandemic. The <a data-linked-post="2645815473" href="https://austonia.com/Coronavirus/austin-task-force-reopening" target="_blank">economic impact</a> of the virus, as well as uncertainty about when it will end and <a data-linked-post="2645661019" href="https://austonia.com/data-shows-significant-reduction-of-activity-in-travis-county-but-eckhardt-would-ask-people-to-do-more" target="_blank">concerns about transmission</a>, have provided fewer customers to local realtors. But, according to data and industry experts, there may be financial benefits for those who choose to relocate.</p><p>Moving is considered essential under the local "<a href="https://www.austintexas.gov/department/covid-19-information/stay-home-order" target="_blank">Stay Home-Work Safe</a>" orders, which were issued on March 24 and recently <a data-linked-post="2645815473" href="https://austonia.com/Coronavirus/austin-task-force-reopening" target="_blank">extended through May 8</a>. While some renters are postponing moves, others are taking advantage of lower rents and other specials offered as property owners try to adapt to the current marketplace.</p><p>Natalie Young is a licensed real estate agent and manager of A+ Apartment Locators in North Austin. Her office remains open, although it has seen a drop in customers. </p><p>"I think honestly some people don't know they can still move during this time," she said.</p><p>Although some customers have decided to pause their apartment search, others sense an opportunity. </p><p>Between March 31 and April 21 Austin rents decreased 1.1% overall, according to a market report compiled by ApartmentData.com. This may seem like a minor change, but Cindi Reed, the company's director of business development, said otherwise.</p><p>"Considering most management companies are budgeting rental rate increases of anywhere between 3-5%, a -1.5% effect in your budget compared to what a normal increase has been, it's significant," she said.</p><p>Perhaps more telling is the change in the local absorption rate, which shows the difference in occupied apartments from one month to the next. April is traditionally one of the busiest months for new leases, Reed said, and last year the Austin market absorbed 1,204 units in April. By April 21 of this year, however, the market absorbed 128 units—a nearly 90% change. </p><p>"[Apartments] kind of had the upper hand," Young said of the Austin rental market pre-pandemic. "And the tables have turned really overnight to where now they're reaching out to us to meet clients."</p><p>Young and her colleagues are now showing customers prospective apartments over Zoom using videos recorded by property management companies. </p><p>Emily Blair, executive vice president of the Austin Apartment Association, said that while fewer people are looking at apartments than usual, there is a higher closing rate among those who are. She added that more renters are choosing to extend their lease to avoid moving during a pandemic.</p><p>Logistically, Northfelt said the moving process hasn't changed much, but not every step of moving can be adapted for a pandemic.</p><p>"Usually … you have a going-away party [or] go to a music venue that you always loved," Northfelt said. "I'm sorry that I can't say goodbye to [Texas] in the way that I was expecting." </p>
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