Luxe Austin Homes - developers

"What do developers think of building under Austin's HOME ordinance?"

Austin Business Journal writes, "Off a quiet road in South Austin, a homebuilder is trying something new to bring more and less expensive housing to the city. 

Ash Creek Homes is using the city's Home Options for Mobility and Equity ordinance — known as the HOME ordinance — to build 28 detached homes on a 2.4-acre property with 10 residential lots. The location is on Drew Lane near the intersection of Slaughter Lane and Menchaca Road. 

The goal of the project is to see if building a mid-sized housing development under Austin’s HOME ordinance will result in more homes at cheaper prices, said Jenna Edge, president of Ash Creek Homes. She said the company bought the property before the HOME ordinance was approved, with the hope of using the…

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"Austin's affordable housing efforts could be thrown off by new Texas law"

Austin Business Journal reports, "A new state law set to take effect in the fall could throw a wrench in Austin’s plans to incentivize more affordable housing. 

That’s according to the director of Austin's planning department, Lauren Middleton-Pratt, who wrote in a July 28 memo to city leaders — as the city is updating its density bonus programs — that a new state law will require the city to re-evaluate how it incentivizes new income-restricted housing units. 

The new state law is Senate Bill 840, which was passed during the 89th Texas Legislature and allows for mixed-use residential housing on any land that’s zoned for office, commercial, retail, warehouse or existing mixed-uses without needing a zoning change approved by a city. The legislation,…

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"Legislative wrap up: Texas passes key housing bills"

Austin Business Journal writes, "The most recent Texas legislative session saw a slate of measures passed to make it easier to build more housing across the state. 

Some of the laws that were changed include allowing smaller and ideally more affordable homes to be built, expanding where housing in the state could be built and making it harder for housing developments to be killed in the approval process. 

While the Texas Legislature and its process is known for killing more bills than they pass, the 89th legislative session proved to be a “really strong” one for housing and affordability, said Julia Parenteau, the director of public policy for Texas Realtors. 

“We did anticipate that housing affordability, in particular, was going to be…

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"Multiple new multifamily projects on tap, from The Domain to South Congress"

While deliveries of multifamily projects in the Austin area have been forecast to decline in the coming years, some are still being planned.

From The Domain to South Congress Avenue, developers have projects on tap ranging from townhome complexes to mid-rise apartment buildings, according to three site plan applications filed with the city. They're in the works at a time when uncertainty swirls around the metro's multifamily market and a number of other projects have been canceled or delayed.

Multifamily vacancy came in at 15.5% in April, according to ApartmentData.com, an elevated level that's a concern for developers and property managers because high vacancy rates lead to lower rental rates and less new development as investors hesitate to…

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"The National Observer: Real Estate: National housing market shifts amid spring season"

Editor's note: Here's a look at The National Observer: Real Estate, a roundup of top real estate news from across The Business Journals' network of publications.

Austin Business Journal shares, "Dallas tends to top the country on a lot of metrics, and it can count new housing supply as another feather in its cap.

The Dallas-Fort Worth Metroplex experienced a 27% growth in new housing from 2010 to 2023, or 9% higher than its predicted growth of 18%, according to a new study by the George W. Bush Institute-SMU Economic Growth Initiative. It's also much higher than the average metro growth rate of 15%.

Although DFW is becoming more expensive as more jobs and people move there, its new housing supply is helping to keep home prices and rents…

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"Homebuyers Face Less Stress as More Listings Hit the Market"

Realtor.com writes, "It’s spring home selling season, and there’s good news for buyers who may feel less pressure to commit to a home on the spot as more listing options are available.

The Realtor.com® weekly housing data showed that listing prices flattened even as new listings and active inventory growth continued. The data suggests that March home shoppers will have more options and a bit more time to evaluate those options this year versus last.

The Realtor.com forecast expects modestly higher home sales from the low 2024 bar as inventory recovery gives home shoppers more options and more market power. That mortgage rates are steady this year at a time when they surged last year will likely benefit spring shoppers and should encourage…

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"A solution to housing affordability in Austin?"

Austin Business Journal writes, "Build-to-rent neighborhoods cropping up all around Austin could be one solution to the metro’s crisis-level shortage of affordable housing, some experts contend.

Developers like Arizona-based NexMetro Communities and Empire Group of Cos. have build-to-rent projects set to open here soon. The neighborhoods — which consist entirely of single-family homes built for rental use — are largely in the suburbs, such as Empire Group's projects in Hutto and NexMetro's projects in Liberty Hill and Georgetown.

Empire Group partner Randy Grudzinski said the model is intended to address affordability by offering something between renting an apartment and owning a home.

Build-to-rent homes "allow people to have an interim…

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"What will happen in 2025 to rent in Austin?"

Austin Business Journal reports, "Austin’s multifamily market is oversupplied again, and with the switch in cycles come deals for renters.

The area has seen a steady drop in rental prices through recent months, with the median rent at the end of 2024 about 5% lower than at the end of 2023. The drop comes after the pandemic supercharged both Austin’s growth and cost of housing as many people relocated to the city for its warm weather and quality of life — which when paired with historically low interest rates encouraged a building boom in the area.

“The market was so good in 2021 and 2022 you saw record rent growth, over 20% rent growth,” said Patton Jones, vice chairman of Newmark’s Central Texas office, who oversees the firm’s multifamily…

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"Here's a look at changes Austin made to development regulations in 2024"

Austin Business Journal shares, "It has been a year of change in Austin for regulations around homebuilding, with many new policies enacted that are meant to boost the supply of residences. 

They include new density bonus programs that enable developers to build taller buildings if they include affordable units, as well as modifications to rules governing lot sizes and how many homes can be built on them.

Here is a look at some of the changes enacted in Austin in 2024, in addition to proposals that the City Council may consider soon.

HOME Initiative 

One of the most debated undertakings was the implementation of the HOME Initiative, which altered the rules regarding how many homes can be built on single-family lots and also reduced the…

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"New city zoning program that uses density as carrot to encourage affordable housing proving popular so far"

Austin Business Journal writes, "It will take time and it won't help everywhere, but a new zoning designation should boost the supply of housing in Austin.

That's the view of a number of developers when it comes to the so-called Density Bonus 90, or DB90, zoning program approved by the City Council in February. Residential buildings on properties with the new zoning can be up to 90 feet high — 30 feet higher than otherwise allowed — and have ground floor commercial uses, provided certain percentages of the residential units are priced at levels deemed affordable.

“It's unlocking additional properties that couldn't previously achieve the necessary density,” said Chris Affinito a managing partner at Notional Development Partners, a firm that…

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