Buzzing boomtown’s sudden decline sparks celebrations among bitter families

A former boomtown that exploded in its wealth in recent years appears to be cooling down, with rental prices starting to drop. 

The city of Austin gained its popularity thanks to its thriving tech and music industries moving into the city, as well as low state taxes that brought on a population boom. 

After years of rapid growth economically – with a 46 percent increase in GDP from 2018 to 2022 – the average apartment rental price in the Texan city has taken a tumble and its population expansion cooled to just 2.7 percent from 2020 to 2024.

According to Houseworks Austin, an apartment in the city is now averaging at around $1,600 per month, down $100 on the previous year’s average.

Those recent figures also come at a time where developers are looking to fill a new affordable townhouse community in the south of the city. 

A new development, called Industry Soma, is slated to be completed in March with applications now open for 23 townhouses. 

According to local officials, the idea behind the development is to attract and retain families with generational ties to the neighborhood. 

After years of rapid growth, the average apartment rental price in the Texan city has taken a fall

A new development, called Industry Soma, seen here, is slated to be completed in March with applications now open for 23 townhouses

According to local group HouswingWorks Austin, the drop in rental prices has to do with an increase in apartments being built throughout Central Texas in the last few years.  

Executive director Awais Azhar told KVUE: ‘We have seen rents drop significantly, however we have also seen rents not drop to the same level as the pre-pandemic economy.’

Azhar also added that more still needs to be done to bring affordable housing to those that need it in the city. 

That is especially important for those who are currently at 30 percent of the median family income, which is around $30,000 annually.

He continued: ‘There are still households that are still struggling, there is no doubt about it. Assistance programs are a big part of making sure we are stabilizing people.’

Local Ellie Acuna spoke with the outlet about living with her two daughters, one of whom is special needs, in affordable housing. 

‘Everything else still needs to be taken care of every money, kids have lots of needs.

Acuna is lucky enough to qualify for a Foundations Communities property, paying $1,320 a month for a three-bedroom. 

Local Ellie Acuna, seen here, spoke with the outlet about living with her two daughters, one of whom is special needs, in affordable housing. 

Awais Azhar added that more still needs to be done to bring affordable housing to those that need it in the city

She said without the help of the program, she would struggle to make ends meet, saying: ‘It sounds great, that rent has gone down. 

‘But if you ask any single parent family that’s looking for housing it is still unaffordable.’

Prices for the new SOMA development will range from $235,000 to $270,000, with applications open to those on low income. 

The single-family homes will be sold to families earning up to 80 percent of the median family income for the Austin metro area. 

Megan Etz, head of operations for Industry ATX, said: ‘When people think about affordable housing, they think about rentals. But they don’t think about affordable home ownership. 

‘That rung of the ladder is what we want to get the word out about – that these are brand new homes that they might qualify for.’  

Prices for the new SOMA development, seen here, will range from $235,000 to $270,000, with applications open to those on low income

They are being aimed specifically at single-family homes

The population of the wider city soared from 1.6 million in 2013 to 2.3 million in 2023, according to TheStreet

Mandy DeMayo, the interim director for the Housing Department, said: ‘We are grateful to support a townhome community that will provide prospective buyers with an affordable option for homeownership. 

‘Affordable home ownership is important to Austinites, helps create stability and helps families build generational wealth.’

The population of Austin’s metropolitan area soared from 1.6 million in 2013 to 2.3 million in 2023, according to TheStreet. 

This prompted developers and homebuilders to swarm Austin, and buzz around the city as a tourist destination meant airlines quickly began launching new flight routes. 

Despite a large buzz, Austin now seems to be losing its luster.  

Moving company PODS released an annual moving trends report and found the city to have the fifth most move-outs in 2024.

The city saw the value of its houses drop 20 percent in November from its pandemic peak, according to Nick Gerli, CEO of real estate data platform Reventure App.

He said…