Austin’s Building Boom Not Reaching Lowest-Income Families

Despite having the highest rate of affordable housing construction in the nation, Austin is still underproducing housing for the neediest households.

1 minute read

May 6, 2025, 8:00 AM PDT

By Diana Ionescu @aworkoffiction


Austin, Texas skyline.

Reagan / Adobe Stock

Despite having the fastest affordable housing construction pipeline in the nation, Austin still faces a shortage of housing for the lowest-income households. The city built 4,605 affordable housing units in 2024 and is on track to deliver 3.452 more this year.

But according to a Fast Company article by Patrick Sisson, the city still needs tens of thousands of units to accommodate its rapidly growing population, particularly in the “deeply affordable” sector. “Defined as housing that can support those making around 30% of the median income; in 2023, just 63 such units were built, even though this group makes up 17% of the city’s population.” This is due in part to shifts in the city’s housing market, where the median home price rose by 58 percent since the mid 2010s, putting even rents deemed ‘affordable’ out of reach for many residents.

While Austin’s combination of private investment, public funding, and regulatory reform that made it easier to build have made it a leader in housing construction, new challenges such as rising interest rates and tariffs on materials could significantly slow the pace of construction.

Monday, May 5, 2025 in Fast Company

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