Southwest Austin - Dripping Springs Edition | July 2025

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Southwest Austin Dripping Springs Edition VOLUME 18, ISSUE 4 JULY 29AUG. 28, 2025

2025 Home Edition

Floods and res Home insurance costs soar amid increasing weather risks

were paying $6,888 a year,” White said. To secure a new insurance policy, the White family rst had to replace their roof. White’s new coverage now costs about $2,000 a year. For many in the area, like White, insurance has become more expensive in recent years—even as coverage has shrunk. As extreme weather grows more frequent and severe, insurance is more critical than ever, but it also means insurance companies are left paying out billions in claims.

BY HALEY MCLEOD

South Austin resident Samantha White said she recently shelled out more than $13,000 for a new roof after learning her old one didn’t qualify for an insur- ance claim. Making matters worse, she later discovered she’d been paying signicantly more for homeowners insurance than others in her area—without even knowing it. “A friend told me what their homeowners insurance costs, and we realized ours was literally quadruple. We

CONTINUED ON 26

SAM SCHAFFERCOMMUNITY IMPACT

An Austin-based crew replaces a storm-damaged roof—work that’s increasingly being paid for out of pocket as insurance claim approvals become harder to secure. SAM SCHAFFERCOMMUNITY IMPACT

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About Community Impact

Owners John and Jennifer Garrett launched Community Impact in 2005, and the company is still locally owned today with editions across Texas. Our mission is to provide trusted news and local information that everyone gets. Our vision is to build communities of informed citizens and thriving businesses through the collaboration of a passionate team. Our purpose is to be a light for our readers, customers, partners and each other by living out our core values of Faith, Passion, Quality, Innovation and Integrity.

Market leaders & metro team

Reporters Brittany Anderson Katlynn Fox Dacia Garcia Elisabeth Jimenez Anna Maness Haley McLeod Hannah Norton Brooke Sjoberg Ben Thompson Joel Valley Gracie Warhurst Chloe Young Graphic Designers Abbey Eckhardt Alissa Foss Abigail Jones Sabrina Musachia Karoline Pfeil Sam Schaer

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Minh Nguyen Joseph Veloz Managing Editor Darcy Sprague Product Manager Gloria Amareth Quality Desk Editor Adrian Gandara Austin Market President Travis Baker

Elle Bent Editor

Lindsee Sanchez Account Executive

Note to our readers: Beginning this month, you’ll no longer see Texas Monthly content featured in Community Impact . We’re grateful for the partnership and proud to continue focusing on original, impactful reporting from our own CI journalists across Texas. As always, thank you for trusting us to keep you informed about what matters most in your community.

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Impacts Southwest Austin

MOPAC

• Opened June 9 • 2605 Jones Road, Unit 104, Austin • www.featherbonetattoo.com

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3 1-Tom-Plumber The company offers full-service plumbing and draining services for homeowners and businesses. • Opened in April

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• 9417 Circle Drive, Unit B, Austin • www.1tomplumber.com/austin-tx

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Coming soon

4 Restaurant Depot The membership-based food service supplier sells wholesale meats, produce, cheese canned foods, utensils, dinnerware and more. • Opening Aug. 20

MOPAC

• 8201 S. Congress Ave., Austin • www.restaurantdepot.com

5 Sakura Sushi & Mongolian A new sushi restaurant is slated to open in Southpark Meadows, but owner Leo Liu told Community Impact that he does not have an opening date set yet. Sakura Sushi & Mongolian Grill is planned to open next door to Cinemark in the shopping center, in what was previously an Austin’s Pizza. • Opening TBD • 9900 S. I-35 frontage road, M100, Austin

MAP NOT TO SCALE

What’s next

6 Club Studio The fitness club filed a permit with the Texas Department of Licensing and Registration for a location off Slaughter Lane. The national chain offers traditional gym amenities and boutique fitness classes. The permit is located at the current site of an LA Fitness. • 1824 W. Slaughter Lane, Austin • www.clubstudiofitness.com

• Opened June 30 • 5604 S. Congress Ave., Austin • www.fortunetelleratx.com

Now open

1 Fortune Teller A restored 1920s-era cottage on what was previously an open lot with a pavilion and food trucks houses a new neighborhood spot to gather, get coffee and sip cocktails from owner Thomas Bailey. Sabor Tapatio, the food truck previously located in the lot, will be returning to Fortune Teller.

2 Feather and Bone Tattoo Owned by Sarah Law and Joseph Mancha, the business offers tattoos and will soon begin offering piercings. Clients can request a variety of tattoo options from micro-realism to full body pieces.

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Now open

Coming soon

7 Flow Yoga The yoga studio has opened its sixth Austin location off South Congress Avenue. The studio offers hot yoga, meditation, community events and a tea lounge. • Opened July 6 • 8534 S. Congress Ave., Austin • www.flowyogaatx.com

10 Rush A 7-acre nature reserve and sports club will offer racket sports, food and drinks, entertainment, community and more. The first phase, the first six courts, is slated to open later this summer, said Nick Sutcliffe, CEO and founder of Rush. The final phase will be completing the 3-acre nature reserve, which backs up to Slaughter Creek. • Opening in 2026 • 10037 Menchaca Road, Austin • www.rush.club

13 The Picklr The upcoming pickleball facility will feature eight courts, locker and shower rooms and bathrooms. A pro-shop will also be available with paddle technologies, demos, accessories and apparel provided by Pickleball Central. • Opening in spring 2026

• 7101 W. Hwy. 71, Ste. D1, Austin • www.thepicklr.com/location

8 Rico’s Paleteria A new ice cream shop offering Mexican snacks and candy is planned to open within the Tanglewood Village Shopping Center, according to a filing with the Texas Department of Licensing and Regulation. Based in Dallas, Rico’s sells treats like paletas, mangonadas, funnel cake and chamoy candy. • 2110 W. Slaughter Lane, Ste. 132, Austin • Instagram: ricospaleteria

• 7900 RM 1826, Austin • www.healthcare.ascension.org/seton

renovations, new furniture, new decorations in the dining room and modifications to the bar. • 6705 Hwy. 290, Ste. 503, Austin • www.via313.com

11 Kerbey Lane Cafe The all-day cafe celebrated its 45th anniversary in May. Customers can enjoy seasonal options, brunch, lunch, dinner and starters. • 4301 W. William Cannon Drive, Austin • www.kerbeylanecafe.com 12 Via 313 The Detroit-style pizza restaurant in Oak Hill celebrated both 10 years of business on June 27 and a reopening after a “facelift.” The restaurant closed for renovations in April, which included kitchen

Closings

14 Factory Mattress Factory Mattress is closing its Austin-area locations, following the company filing for bankruptcy. The storefront sold mattresses, bedding products and loungers. Locations are currently selling all products with discounts of up to 80% off. • Closing TBD • 5601 Brodie Lane, Ste. 1400, Austin • www.factorymattresstexas.com

In the news

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Impacts

Dripping Springs

BY ELISABETH JIMENEZ

• 700 Old Fitzhugh Road, Ste. A, Dripping Springs • www.southernsweetscandy.com

In the news

BELL SPRINGS RD.

FITZHUGH RD.

Coming soon

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OLD FITZHUGH RD.

3 Dripping Diamonds The new store by Molly Phillips will offer fine jewelry. • Opening in late summer • 400 W. Hwy. 290, Ste. A 104, Dripping Springs • Instagram: drippingdiamondstx 290

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MERCER ST.

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MAP NOT TO SCALE

What’s next

4 Taco Bell The restaurant replaces what was Chicken Express. • 230 Hwy. 290, Dripping Springs • www.tacobell.com

Now open

5 Bell Springs Winery Bell Springs Winery is celebrating 15 years since its opening in August 2010. The business offers tasting experiences as well as a full food menu. Guests can host events at the space such as weddings, rehearsal dinners and private parties. Leashed dogs are welcome. • 3700 Bell Springs Road, Dripping Springs • www.bellsprings.com

1 Personal Warehouse The chain offers units for storage and workspaces. • Opened in June • 15431 Fitzhugh Road, Dripping Springs • www.personalwarehouse.com 2 Southern Sweets Candy Company The shop is now serving a variety of candies. • Opened in late April

In the news

6 Dripping Springs City Hall Officials wrapped up eight months of renovations.

• 511 W. Mercer St., Dripping Springs • www.cityofdrippingsprings.com

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Government

BY: ELISABETH JIMENEZ, HALEY MCLEOD & BEN THOMPSON

Austin proposes record budget, tax election likely

Hays County to appeal road bond ruling Hays County commissioners voted to appeal a June court ruling that overturned the county’s $440 million bond election, which stops the county from funding more than 30 planned road projects. The details The bond was approved by 55% of voters in November. Ocials said the appeal would honor the majority decision by following through with the mobility projects.

City Manager T.C. Broadnax proposed a $6.3 billion scal year 2025-26 budget in July, including a $1.48 billion general fund for pub- lic-facing services. The big picture Broadnax’s budget is supported by a 10% tax rate increase. The city estimated the “typical” res- ident—with a median-valued home and standard service usage—can expect a combined 4.9% cost increase from taxes, utility charges and fees. However, city ocials have signaled they’ll likely ask voters to raise taxes further this fall given projected future shortfalls, and the loss or expiration of various federal dollars. “Austin still needs investment to be successful. We still need high-quality services to have a high quality of life,” Mayor Kirk Watson said in a newsletter. City Council is now reviewing the spending plan and will approve a nal budget with amendments aimed at their priorities mid-August.

Austin’s proposed general fund covers most city services used by residents. Public safety (police, forensics, re, EMS) 65.61%

14.53% Parks, libraries

Public health, homelessness, social services 9.83%

Transfers/other 3.36% 2.5% Municipal court

1.72% Housing and planning

“This is beyond just a road bond being voided. This is about thousands of voters’ voices being overturned.” MICHELLE COHEN, COUNTY COMMISSIONER

1.69% Animal services

0.75% Arts, culture, music, entertainment

SOURCE: CITY OF AUSTINCOMMUNITY IMPACT

Travis County ood recovery continues

The overview Several deaths and missing person were con- rmed. As of July 14, damages are standing around $73 million with that number expected to continue climbing, a county spokesperson said. Moving forward Travis County has opened a temporary two-way low-water crossing next to the damaged Sandy Creek Bridge to support debris removal and reconnect the community. Restrictions remain in place including a burn ban through Aug. 5.

County ocials extended a local disaster declaration this month after deadly ooding left widespread damage in Northwest Travis County over the Fourth of July weekend. “This is going to be a long recovery,” commis- sioner Ann Howard said.

Several roads in Northwest Travis County were left impassable after intense ooding.

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Transportation

BY ELISABETH JIMENEZ

City ocials working to rename Plantation Road in Southwest Austin

In 2018, the city’s Equity Oce released a memo listing Plantation Road as a high priority for renaming. The latest resolution directs the city manager to begin the process of identifying potential names through collaborating with council oces, community members and the Zion Rest Missionary Baptist Church, where the Rev. Elijah Kincheon, a descendent of Kincheon, served as one of the early church leaders. Looking ahead A city ordinance to rename Plantation Road must be submitted to council for a public hearing and possible action by Oct. 9. Ellis said she will work with stakeholders over the summer on the initiative.

City of Austin ocials are working toward renaming Plantation Road as part of a broader initiative to rename streets with Confederate ties. The details A resolution from council member Paige Ellis to rename the street was passed at a June 5 meeting. The street sits in a region known as Kincheonville, previously a freedmen community, established in 1865 by Thomas Kincheon. Kincheon developed the community to oer economic opportunity, community and a safe space for formerly enslaved African Americans, according to city documents. Ellis’ resolution states that the street “conjures images of the Antebellum South and a longing for an agricultural economy dependent on the forced labor of enslaved African Americans.”

Austin City Council is working on an initiative to rename city assets with ties to the Confederacy.

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Education

BY ELISABETH JIMENEZ & CHLOE YOUNG

Dripping Springs ISD approves budget Dripping Springs ISD ocials approved a $101 million budget and $3.07 million decit on June 23. However, ocials expect to adjust it for changes from the 89th Texas Legislature in August. The details Cuts totaling $977,184 were made to the budget ahead of its adoption through position reductions, attrition and stang including: • Reduced nine positions, $550,000 in savings • Eliminated two already-vacant positions, $184 in savings • Sta transfers to account for new atten- dance zones and enrollment numbers, $427,000 in savings

Austin ISD approves turnaround plans for three schools Three Austin ISD middle schools—Burnet, Dobie and Webb—will receive new principals, teachers and curriculum next school year as the district works to improve student performance. The details In May, AISD announced it would oer up to $20,000 in stipends to incentivize high-perform- ing educators to teach at the schools. According to AISD data, 61% of Burnet teachers were invited to return, followed by 47% of Webb teachers and 16% of teachers at Dobie. AISD will track student progress at these cam- puses through additional testing. If no improve- ment is nd AISD may partner with a charter school to manage the schools.

Community members spoke against Austin ISD's decision to restart the schools on June 12. The plan Each campus will receive the following $1.7 million in changes:

Five 70-minute periods per school day instead of four 90-minute blocks Extended school days for students and sta with after-school enrichment Literacy and math taught every day instead of every other day Nine additional full-time employees, including teachers, assistant principals, counselors, instructional coaches and content interventionists Additional professional development and training for teachers and administrators

SOURCE: AUSTIN ISDCOMMUNITY IMPACT

AISD adopts $1.58B operating budget

budget reduction strategies, including $9 million in additional state funding following the 2025 legislative session. AISD sta anticipated paying $715.5 million in property taxes back to the state through a process known as recapture and save $15.3 million in vacant positions. A home with an average taxable value of $576,644 would have $4,040 in property tax in FY 2025-26 based on a tax rate of $0.9253 per $100 valuation, according to AISD ocials. This would be a $317 tax reduction.

For FY 2025-26, AISD has proposed the following budget reductions totaling $44 million , including: • $10 million to restructure central ofice positions • $9 million in additional state funding • $7 million in cuts to contracted special education services • $4 million in holding staff beneits contributions • $3.75 million in unidentiied cuts • $3 million to reduce department budgets by 5% • $3 million in property insurance savings • $2 million in revisions to special education placements by centrally locating students at certain campuses

Austin ISD has adopted a $1.58 billion operating budget with a $19.7 million shortfall for scal year 2025-26. The details The district reduced its initial shortfall projec- tion of $127 million after proposing $44 million in

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Events

BY SARAH HERNANDEZ

August

Blues on the Green Austin’s longest-running free concert series will return to Zilker Metropolitan Park.

• Aug. 5-6, 7 p.m. • Free (admission)

• 2100 Barton Springs Road, Austin • www.kgsr.com/blues-on-the-green

Pride Back To School Pool Party Pride of Dripping Springs will host a pool party at Founder’s Memorial Park Pool. Attendees can pack a snack and floaties. RSVPs close Aug. 7. • Aug. 9, 5:30-8:30 p.m. • Free (admission) • 419 Founders Park Road, Unit A, Dripping Springs • www.prideofdrippingsprings.org Brisketfest 2025 The Far Out Lounge and pop-punk band Jimmy Eat Brisket will present a day of music, food and vendors.

Gambler Days The Austin Gamblers, the city’s professional bull riding team, will compete against other teams in the league over three days at the Moody Center. • Aug. 22-24 7:45 p.m. (Friday); 6:45 p.m. (Saturday);

1:45 p.m. (Sunday) • Ticket prices vary • 2001 Robert Dedman Drive, Austin • www.pbr.com/tours/team-series/2025/austin-tx

• Aug. 9, 2 p.m. • $17.85 (tickets) • 8504 S. Congress Ave., Austin • www.thefaroutaustin.com

Firefly Watch Watch and learn about fireflies with Wimberley Parks and Recreation. Attendees should wear closed-toed shoes for an easy-to-moderate half-mile hike. • Aug. 15, 8:30-9:30 pm • $5 (admission); free for children under 10 • Blue Hole Regional Park Amphitheater, 333 Blue Hole Lane, Wimberley • www.wimberleyparksandrec.com Craft Supply Swap The Austin Public Library’s Menchaca Road Branch will host a community craft supply swap where people can swap gently-used, clean and new craft supplies. • Aug. 16, 11 a.m.-1 p.m. • Free (admission) • 5500 Menchaca Road, Austin • www.library.austintexas.gov/events

POP Cats Austin 2025 The POP Cats convention will have all things cat- related. There will be a gaming zone, a cat art exhibit, cat coloring activities, a permanent and temporary cat tattoo parlor and more. Local animal organizations will be in attendance with adoptable cats. • Aug. 16, 11 a.m.-5 p.m.; Aug. 17, 11 a.m.-4 p.m. • $15-$28 (admission) • 900 Barton Springs Road, Austin • www.popcats.co Pride Parade & Festival This year’s Pride theme is “Silence=Death,” encouraging the community to raise their voices “in protest, in celebration, and in unity.” There will be games and carnival rides, vendor booths, food and drinks. The parade is free to attend and will start at the Capitol.

• Aug. 23, 11 a.m.-6 p.m. • $10-$20 (tickets); free for children under 6 • Fiesta Gardens, 2101 Jesse Segovia St., Austin (festival); Texas State Capitol Building, 1100 Congress

Ave., Austin (parade) • www.austinpride.org

The Front Festival Future Front Texas will present its annual independent music, film and art showcase over Labor Day Weekend

at iconic venues across Austin. • Aug. 28-31, daily times vary • $10-$50 (tickets) • Locations vary • www.thefrontfest.com

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Business

BY SARAH HERNANDEZ

Seido karate teaches mindfulness and discipline along with the physical aspect of martial arts training.

Sun Dragon Martial Arts and Self-Defense oers Seido karate and self-defense classes for all ages.

PHOTOS COURTESY SUN DRAGON MARTIAL ARTS AND SELFDEFENSE

Local martial arts school empowers South Austinites Sun Dragon Martial Arts and Self-Defense, a nonprot martial arts school in South Austin, is dedicated to building a community that values inclusivity and self-defense in all aspects of life. How it started contrary to Kyokushin karate known for its aggres- sive training. About the program

Laura Hayden is the third executive director of the woman- founded Sun Dragon Martial Arts and Self-Defense.

Sun Dragon instructors aim to create a safe space for their students, training them to ght as well as be mindful of their experience and their partner’s. Graham Smith, Sun Dragon’s head instructor, said they also encourage failure as a learning experience. Sun Dragon also oers a violence prevention pro- gram, oering workshops and classes for children and adults. Coty DeLacretaz, the program coordi- nator, said classes touch on topics like gender- and identity-based violence, boundary setting, victim blaming and “empowerment self-defense.”

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Suzanne Pinette opened Sun Dragon on Riverside Drive in 1989 as a Kyokushin karate and self-defense school for women and children. The school moved to its current location in Westgate in 2008 under the direction of Joy Williamson, who trained under Pinette. Today, Sun Dragon students of all ages study Seido karate, a style founded by Kaicho Tadashi Nakamura. He wanted to create a style that was accessible to everyone and welcomed women,

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4534 West Gate Blvd., Ste. 101, Austin www.sundragon.org

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Development

BY ELISABETH JIMENEZ

New developments grow Southwest Austin, Dripping Springs

S. ROB SHELTON BLVD.

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R I A L T OB L V D .

LONE PEAK WY.

DENALI WY.

1826

YELLOW THISTLE TRL.

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MORNINGHILL DR.

4 Local Dripping Springs The apartment complex, located on over eight acres of land, oers oor plans including studio, one- and two-bedroom apartments. • Opened in February • 1282 South Rob Shelton Blvd., Dripping Springs, • www.localdrippingsprings.com

5 Industry SOMA The development oers 23 townhomes from $240,000 to $320,000. • Opened in June • 1905 Keilbar Lane, Austin • www.industryatx.com

6 Cannon Ranch The development offers single-family homes, with floor plans from three- to ive- bedroom units, one- to two-story homes and garage options. • Opened June 2024 • 325 Denali Way, Dripping Springs • www.ashtonwoods.com

1 Cayena Creekside Thesecond phase of the luxury community will bring 25 two-and three-story homes to Oak Hill. • Phase 2 launched in March • 7907Yellow Thistle Trail, Austin • www.cayenacreekside.com

2 Escala Hills The over 60-acre residential area will have 30 homesites available, with an average lot width of 150 feet. • For sale, opened in June • 9412Morninghill Drive, Austin • www.escalahills.com

3 Jovie Belterra The 55+ living community oers one- and two- bedroom oor plans, located in Belterra. • Opened June 2024

• 167 Hargraves Drive, Austin • www.livejoviebelterra.com

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SOUTHPARK MEADOWS 9900 S I-35 Frontage Rd (512) 280-7400

DRIPPING SPRINGS 166 Hargraves (512) 432-0186

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Real estate

BY ELISABETH JIMENEZ

Home Edition

2025

Readers, welcome to your annual Community Impact Home Edition! This annual guide features news from key real estate trends to tips on buying a home for the rst time. All of the stories included in this guide are compiled by our team of local journalists. The goal of this guide, published every July, is to bring readers vital information about home ownership and real estate in Southwest Austin and Dripping Springs. Our cover story this month ties into our Home Edition. Reporter Haley McLeod explores the rising cost of homeowner’s insurance, and how factors such as weather events continue to impact costs. Also in this edition is a look at the Home Ownership for Middle-income Empowerment, or HOME, initiative after more than a year in eect in Austin on page 22, upcoming changes to another building program in Austin on page 23, a guide to special districts for homeowners on page 28, the slow of housing production in the Austin-area on page 25, residential market data on page 29 and more.

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Locals turn to regenerative agriculture in times of drought

the space between them, Topiwala said. During rain events, water will rush through the swales and feed into the berms, hydrating the soil. Hays County resident and permaculturalist Annie Spade said incorporating native plant species can be benecial for the landscape. She encourages experi- menting with dierent plants to see what works best for an individual’s home. “That’s the beautiful thing about native plants— they will naturalize,” she said. “They will just live in the places that work for them.” The bigger picture Despite recent rainfall, drought conditions are projected to persist for at least the next three months, according to the U.S. Drought Monitor. Topiwala said regenerative agriculture is one easy way to positively impact a stressed environment. “There’s things that we can do at home that will have amazing impacts on the microclimate of your local environment,” he said.

Despite recent rainfall, the U.S. Drought Monitor is projecting drought for the next three months as of July 21. Locals are working to rehydrate the land through practices such as regenerative agriculture. The background Regenerative agriculture focuses on restoring the environment by promoting biodiversity and rebuild- ing soil, said Kiran Topiwala, owner at Nurture Nature Regenerative Landscaping. Similar to xeriscaping—a landscaping approach focusing specically on water conservation through planting native, drought-tolerant species—regener- ative agriculture takes the practice a step further by “being proactive in the restoration of the environ- ment,” Topiwala said. How it works People can incorporate regenerative agriculture into their homes through “low tech” systems such as berms, or raised gardening mounds; and swales,

The setup

Regenerative agriculture can be done at home and helps rehydrate plants.

Berm: raised mound to improve drainage

SOURCE: NURTURE NATURE REGENERATIVE LANDSCAPING COMMUNITY IMPACT

Swale: collects runo to go back into the ground

Drought-tolerant plants

The following plants are perennial, drought- tolerant and deer-resistant. For sunlit areas For shaded areas

• Flame acanthus • Mistflower • Lantana • Skeleton-leaf goldeneye

• Turks cap • Chili pequin • Beautyberry

SOURCE: PERMACULTURALIST ANNIE SPADECOMMUNITY IMPACT

SOUTHWEST AUSTIN DRIPPING SPRINGS EDITION

Real estate

BY BEN THOMPSON

Hundreds of units rising under HOME

HOME’s allowances for denser housing in Austin neighborhoods are being used around the city. The initiative

Almost 800 new residences have been proposed citywide under the Home Ownership for Mid- dle-income Empowerment, or HOME, initiative after more than a year in effect. The overview Under the two-part program, multiple housing units can now be built on single-family lots and individual homes can go on smaller lots. More than 400 applications for multi-unit con- struction under HOME were filed as of mid-May, with the majority new builds. HOME was meant to encourage preservation of older housing as well, but only five projects have taken advantage. The approach HOME was one of the most contested policy changes in recent years. Many residents sup- ported easing restrictions to allow more varied and potentially less costly housing. Others worried it’d increase real estate speculation and

redevelopment, disrupting neighborhoods and spurring gentrification. A city task force formed to find ways to help low- and moderate-income homeowners use HOME released its first recommendations this spring, and new reporting is expected this summer. Staff suggested new public education about HOME, expanding the city’s displacement navigation assistance, and launching new financial education and homeowner protection programs. Staff said that work would cost $100,000, to be considered during budgeting this summer. A required one-year impact report due in Febru- ary has yet to be released. It’s currently being final- ized without a confirmed release date. A review of an “equity overlay” pushed for by some opponents to limit HOME’s effects in displacement-risk areas is also still in progress while development under the program continues. That study is expected to be complete this fall.

Lot boundary

Phase 1 (Multiple dwelling units

Phase 2 (Smaller lots for one unit)

allows up to three dwelling units on a single-family zoned property 796 new units proposed

allows the development of single units on smaller lots

20 small lot projects proposed

417 multi-unit residential applications, 336 approved

SOURCE: CITY OF AUSTIN/COMMUNITY IMPACT

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Real estate

BY BEN THOMPSON

Building program to be revised

The action taken

DB90 is viewed by some City Council members and advocates as a key affordability tool, and has been well-received for its potential to transform vacant property and create new workforce housing. It’s also fallen under regular public criticism for allowing more intensive development that doesn’t account for individual neighborhoods, and for dis- placement pressures tied to higher-end residences rising in lower-income areas. Mayor Kirk Watson acknowledged concerns this spring, saying DB90 had become an “unhappy experience.” Council supported a Watson proposal in June to create more “density tiers” for building programs, with varied height and affordability levels that could better fit different parts of town. The updates may also add redevelopment require- ments, like a one-to-one unit replacement policy.

submitted and approved since then. It rapidly became more popular than other multifamily options and about one-third of 2024 zoning applications in Austin were for DB90. DB90 generally requires 10%-12% of new housing to be affordable based on the local median family income. For properties on major streets, most ground floor square footage must also be set aside for retail. Cases approved so far could result in thousands of new apartments and condos around Austin including hundreds of income- restricted units.

An Austin development program that’s been both widely used and criticized since its creation last year is being revised, after city officials acknowledged unintended effects of some development under the policy. Austin has several bonus programs allowing the city to trade building allowances for public benefits in new construction. One, DB90, allows mixed-use projects up to 90 feet tall as long as they include a share of income- restricted housing. DB90 has drawn significant interest since its creation in early 2024 with dozens of rezonings

275

MOPAC

183

DB90 rezoning in Austin City officials have approved rezoning requests around Austin for mixed-use projects that include a share of income-restricted housing that can build up to 90 feet tall.

290

183 TOLL

The impact

E. MARTIN LUTHER KING JR BLVD.

360

Prominent opposition rose this spring from residents at West Austin’s Acacia Cliffs apartments, who rallied against redevelopment plans there. They argued their current housing, while dated, was naturally affordable compared to other options and that they’d be priced out by new construction. After several postponement efforts by local council member Marc Duchen, and citing uncertainties about resident impacts, officials unanimously signed off on DB90 zoning for the site in June.

CESAR CHAVEZ ST.

S. LAMAR BLVD.

MONTOPOLIS DR.

183

Approved by City Council Under review

290

W. STASSNEY LN.

MOPAC

NOTE: AS OF JULY 10, 2025 SOURCE: CITY OF AUSTIN/ COMMUNITY IMPACT

S. CONGRESS AVE.

MAP NOT TO SCALE N

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SOUTHWEST AUSTIN - DRIPPING SPRINGS EDITION

Real estate

BY HALEY MCLEOD & ELLE BENT

Q&A: Austin realtor shares tips on buying a rst home Buying a house for the rst time can be daunting. Community Impact spoke with Justin Coeld, a Real- tor based in Southwest Austin, to discuss key things rst-time homebuyers should know. This interview has been edited for length and clarity. Read the full interview on www.communityimpact.com. What’s the rst step a rst-time homebuyer should take before looking at homes? down payment, but dicult to do. If a rst-time homebuyer can save a minimum of 3.5% of pur- chase price and closing costs, that’s a great starting place. Sometimes money can be negotiated from a seller to help cover things like closing costs, repairs or a mortgage rate buy-down. How competitive is the Austin-area market for entry-level homes?

COURTESY JUSTIN COFIELD

Consult with a trusted Realtor and connect with a lender to discuss options and a timeline. These will be great team members for you in buying a home. Any experienced Realtor should have several lenders that they work with and can recommend. Nothing happens without a plan, and the earlier you can get with a trusted Realtor to make a plan, the smoother things will go. How much should buyers budget for things beyond the down payment, like inspections or closing costs? Twenty percent down is always amazing as a

The current market is fairly competitive for entry level homes, but there are currently lots of options. Austin has a tremendous inventory, and buyers have almost too many choices. There are a lot of sellers willing to make deals to sell their home right now. What should rst-time buyers prioritize in a home search? Priorities in a homes search should include location, schools and development because they all aect resale value. You want the home to t where you want to live, but these factors denitely aect

resale as well. Condition is a factor but can always be mitigated, meaning you can always x broken things and do “add value” projects to a home to increase its value or resale appeal. Proximity to groceries, restaurants, development and schools are all great factors in choosing a home. Watch out for things like railroad tracks, ight paths and being too close to undesirable commercial development like a tire shop, waste facility or nightclubs.

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Real estate

BY BEN THOMPSON

Austin-area housing production slows

A closer look

Whitaker also pointed to some caution on the buyers’ side after years of median price increases and high interest rates. Whitaker and Hughes both noted that buyers may be able to get some financial help when buy- ing new builds through larger developers, which are offering deals like interest rate buydowns to make purchases more affordable in an uncertain time—for now. “We might be in that scenario for a while longer, but the second the market shifts, we were behind on homes already and there’ll be a lot more buy- ers, and you’re going to see some prices go up and things get harder to come by again,” Hughes said.

on starts, but they’re doing it in a much more thoughtful and healthy way.” Taylor Jackson, CEO of the Home Builders Association of Greater Austin, said builders are facing challenges like limited natural resources, land and infrastructure needed to support more new homes. Another factor influencing the pace of new construction, she said, is the rising costs of local regulations and development fees. “As far as housing starts right now, we are seeing quite a bit of increases in impact fees by cities,” Jackson said. “That will definitely also slow development.” April Whitaker, Austin division president with homebuilder Taylor Morrison, said developers are responding to a peak in housing supply for the region. “You’re probably seeing a slight contraction in starts just to help offset what’s already an oversupply in the market right now,” she said. “We’ve pulled back slightly where it makes sense. We want to be good stewards of the market and not put too much to market.”

Central Texas has seen several years of declining housing production after experiencing a residential building boom from the 2010s through the peak of the COVID-19 pandemic. The number of new housing permitted across the Austin-Round Rock-San Marcos metro peaked in 2021 with more than 50,000 units added, according to U.S. Census Bureau data. Since then, the region has seen annual declines in new construction, including both single- family homes and apartment complexes. Building activity hasn’t completely halted, though, with tens of thousands of units still coming online across Central Texas so far this decade. Keith Hughes, vice president of sales with the real estate research firm Zonda, said builders learned during the Great Recession of the 2000s that new development shouldn’t ever grind to a stop even if market conditions change. “They were building like mad and trying to find locations, and there was a run-up on land and homes and home prices and all the things that came with that [through the early 2020s],” he said. “So builders have cut back

One more thing

The Austin area is seeing a greater drop- off in new home additions than elsewhere in Texas. From 2023 to 2024, the Austin metro saw a slight decrease in the number of single-family permits. On the other hand, the Dallas-Fort Worth, Houston and San Antonio regions all saw growth—with the latter tracking the highest gains. “It really does come down to economic development,” Jackson said. “San Antonio is doing a great job of recruiting new companies, and part of that is because San Antonio’s more affordable to live in and more affordable to build in.”

Central Texas development downturn Since peaking in the early 2020s, the Austin metro is seeing fewer new housing permits each year.

Total

1 unit

2-4 units

5+ units

60K

50,907

50K

Measuring metros The Austin region recently saw a greater drop-off in new single-family home permits than Texas’ other most populous areas.

42,362

42,264

38,773

40K

32,294

32,037

30,035

Houston metro San Antonio metro

Austin metro Dallas metro

30K

26.16%

20K

30%

11,620

20%

10K

10%

-0.59%

2018 2019 2020 2021

2022

2023

2024 2025*

Single-family home permits

*THROUGH MAY SOURCE: U.S. CENSUS BUREAU/COMMUNITY IMPACT

SOURCE: U.S. CENSUS BUREAU/COMMUNITY IMPACT

SOUTHWEST AUSTIN - DRIPPING SPRINGS EDITION

Floods and fires From the cover

Texas insurance profitability

Most expensive states for home insurance

The big picture

Combined loss ratio

Break-even point

100% 150%

$11,759

Florida

Since 1980, Texas has seen 190 climate disaster events with losses exceeding $1 billion each, totaling over $400 billion, according to National Oceanic and Atmospheric Administration data. “There are a growing number of studies looking at the impact of climate displacement, meaning numbers of people who can no longer live in their homes because of the impacts of climate change,” Travis County Commissioner Brigid Shea said. The state’s average number of billion-dollar disasters per year has increased in recent years, up from an average 4.2 annually between 1980- 2024 to 13.6 annually between 2020-2024. With a total of 20 events just last year, Texas leads the nation in the number of billion-dollar weather- related disasters, according to NOAA. “They’re going broke. These [insurance] guys are the experts at modeling what’s happening. ...

$7,809

Louisiana

0% 50%

$5,711

Oklahoma

$4,482

Texas

$4,437

Mississippi

SOURCE: INSURIFY/ COMMUNITY IMPACT

SOURCES: TEXAS COALITION FOR AFFORDABLE INSURANCE SOLUTIONS, TEXAS DEPARTMENT OF INSURANCE/COMMUNITY IMPACT

They know that the trajectory is more and more of these billion-dollar-plus disasters and the reinsurance companies are telling the insurance companies ‘We’re not covering it,’” Shea said. These incidents have driven homeowner insurance rates sharply higher in recent years. In parts of Central Texas some insurers have dropped certain types of coverage, such as wildfire and flood, leaving residents without critical safeguards.

$2K $1.5K $2.5K $3K $0 Average premium of Texas homeowners 45 TOLL 57.3% increase

SOURCES: TEXAS COMPTROLLER OF PUBLIC ACCOUNTS, TEXAS DEPARTMENT OF INSURANCE/COMMUNITY IMPACT

183

130 TOLL

620

Flood risk

Wildfire risk

Creeks make the surrounding areas prone to flooding.

The Wildland-Urban Interface map shows wildfire risk areas.

Proximity zones A & B: within 50-150 feet of 40+ acre wildland

290 Proximity Zone C: within 1.5 miles of 750+ acre wildland or 0.5 miles of 40+ acre wildland

0.2% annual chance flood hazard

1% annual chance flood hazard

Regulatory floodway

Wildlands

360

290

360

WILLIAMSON CREEK

MOPAC

130 TOLL

MOPAC

WILLIAMSON CREEK

290

183

45 TOLL

SLAUGHTER CREEK

SOURCE: FEDERAL EMERGENCY MANAGEMENT AGENCY/COMMUNITY IMPACT

SOURCE: CITY OF AUSTIN/COMMUNITY IMPACT

45 TOLL

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