Northwest Austin Edition | December 2025

Government

BY BEN THOMPSON

City reports on 1st year of ‘HOME’ building policy Hundreds of new units were cleared for construc- tion during the initial year of the Home Ownership for Middle-income Empowerment, or HOME, initiative’s first phase. The overview The policy allowing more housing on single-fam- ily lots was approved in late 2023 and became effective in February 2024. Over the following year, applications for 436 housing units in duplexes and two- or three-unit projects were approved along with 148 single-family infill projects. New developments under HOME averaged 4,172 square feet and covered an average of 41.62% of their sites with impervious cover, or surfaces such as buildings and driveways that don’t absorb rainfall. HOME doesn’t appear to have spurred a wave of residential demolition, a concern among some

The impact The economic agreement Austin City Council approved for Southwest includes: $180,000 average pay for Southwest’s new employees $2,750 -per-job incentive from city of Austin for Austin resident employees 10% of Southwest’s incentives will support a city child care assistance fund 4-year firefighter contract approved City and Austin Firefighters Association leaders agreed to a new labor contract on Dec. 18, capping off months of negotiations. What happened A new working schedule with reduced weekly hours will be implemented as staffing increases under the new contract, expected to cost about $63 million over four years. Officials said the deal will improve hiring, promotions, pay and firefighter wellness. The agreement also maintains fire depart- ment operations unless the city ever reaches a “severe financial crisis.” If such budget issues arise, a new collaborative framework was created for both sides to agree on next steps and possible impacts to fire engines or stations.

HOME review Austin’s one-year HOME report found:

Declining residential demolitions Slightly lower sales prices for homes on smaller lots A slightly higher share of applications in areas at risk of displacement Minimal impacts on traffic, trash service, drainage and tree canopies

SOURCE: CITY OF AUSTIN/COMMUNITY IMPACT

opponents to the initiative. One- and two-unit demolitions were already slowing before HOME’s implementation and continued to fall after it went into effect. The impact on residential displacement isn’t clear up to this point. Based on limited results so far, city staff reported HOME is potentially playing out as officials had hoped—encouraging smaller housing units at lower price points—although they said more time is needed before drawing firm conclusions.

Southwest Airlines to expand at Austin airport City and state officials gathered Dec. 12 to mark Southwest Airlines’ planned expansion at Aus- tin-Bergstrom International Airport, a day after City Council signed off on a $5.5 million economic incentive deal with the airline. The big picture Southwest’s relocation of its command center and establishment of a new pilot and flight

attendant base at the airport is expected to bring 2,000 new jobs to ABIA by mid-2027, plus thou- sands more related jobs throughout the commu- nity. The crew base will open in March with about 335 pilots and 650 flight attendants. Southwest’s growing footprint also ties into the city’s ongoing expansion of ABIA, including the development of a second terminal where the airline could lease up to 18 new gates.

SOURCE: CITY OF AUSTIN/COMMUNITY IMPACT

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