Propmodo Daily

By Franco Faraudo · Mar. 7, 2024

Greetings!

Almost every city is dealing with the negative effects of unaffordable housing. But few cities have been able to grow the housing stock as fast as Austin, Texas. In today’s email, we look at what exactly Austin has done to make it one of the fastest places to permit a construction project while reducing rents, even as the population has increased.

After years of uncertainty, a new hybrid work model is emerging. Offices have a fresh purpose as hubs of collaboration. Success in this new era depends on data-driven insights. Discover how to analyze building data for improved operations, higher revenue, and smarter upgrades in our latest Propmodo Research E-Book in collaboration with Cohesion.

Now, let's dig in!

How Has Austin Been Able to Build More Housing Than Anywhere Else?

Almost every city in the country is looking for ways to build more housing. But no city has been able to build as much as Austin, Texas. Austin has been building at the fastest pace of any major metro in the U.S. for the last six years straight. This pace of construction has had an effect on housing affordability in the area. Austin's median home price has actually fallen by over four percent year over year over the last few years, even as the population has continued to grow.

So how did they do it? First, the city has created a well-designed online portal called Austin Build + Connect. This not only has an easy-to-use interface to help builders and property owners navigate this difficult process, but it also has a fifty-six-page "user manual" that walks applicants through the process with detailed instructions and screenshots that even the most tech-averse citizen can follow.

Many cities have online permitting portals for construction projects, although most are not as user-friendly as Austin's. To significantly reduce the time it takes to permit new construction to less than half of cities like San Francisco, Austin has implemented several strategies. One approach is offering an expedited permitting process where flatwork, such as foundations and site preparation, can be permitted while the vertical construction elements are still under review. This allows certain aspects of the project to proceed without waiting for the entire permit application to be approved. To be eligible for the fast-tracked application process, applicants must become accredited and pass a test. While the test is open-book, it ensures that applicants are well-informed about the permitting process and requirements, reducing delays caused by incomplete applications or uninformed applicants (don't worry, it's open-book).

Austin also promoted more density by making it easier to permit 'middle-sized housing options. The city council passed a resolution that allows triplexes and fourplexes to have the same site plan review as single-family homes and duplexes. It also created a new plan called "site plan lite" for developments of five to 16 units.

Austin has been leading the nation in expanding its housing supply, achieving this without revolutionary changes to the traditional permitting process. But Austin's success may not be directly replicable in other cities, partly because the influx of tech companies and high-paying jobs has significantly spurred development. Nonetheless, other cities should consider adopting Austin's strategy of streamlining the permitting process to make it faster, easier, and more equitable.

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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