Austin’s YIMBY housing policy is entering its second phase.
A piece of the initiative, aimed at increasing housing density and affordability, took effect last week allowing developers and homeowners to build on lots as small as 1,800 square feet — a dramatic shift from the previous minimum of 5,750 square feet, the Austin Business Journal reported.
The first phase, approved in December, allowed the construction of up to three homes on single-family lots and streamlined the approval process, making it more accessible and cost-effective for developers. Since it took effect, 160 applications for 300 housing units have been filed, and more than 100 of these applications have been approved.
The HOME initiative, which stands for Home Options for Middle-income Empowerment, is also expected to diversify the range of available housing options, making homeownership more attainable.
However, not all areas are eligible for immediate development. Projects in Wildland-Urban Interface zones or areas deemed vulnerable to displacement in the University of Texas’ Uprooted Report, which identifies gentrification and displacement, will face delayed application processes to allow for additional review and consideration of potential impacts on sensitive areas of the city.
The median home sale in Austin last year was about $540,000, with land acquisition costs making up 15 to 20 percent of the cost. Therefore, if that same home were built on a 2,000-square-foot lot instead of a 5,750-square-foot lot, it could sell for $477,300, marking a $62,700 savings, according to the Austin Board of Realtors.
As Austin transforms into a hotspot for the ultra-wealthy, not everyone thinks the HOME initiative will make the city hospitable for everyone.
“I’ve seen no convincing evidence that these newly developed smaller lots will be any more affordable to the average Austinite, especially compared to the quality of life that will be sacrificed in exchange,” City Councilmember Mackenzie Kelly told KEYE in May.
— Andrew Terrell
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