ATX RE Podcast

*They sort of let Builders build in Austin. Mostly the amount of new homes built, is due to the tenacious spirit of regular Texans (builders and contractors) who push through endless red tape. Austin is hands down the hardest City to build in, in Texas. Everyone knows it.

Austin Energy should be broken up. As a monopoly, they treat customers as a burden. All while they work from home. AE knows customers have no choice. They aggressively push infrastructure costs and take weeks to install a meters. Nothing free market competition can’t fix.

City of Austin has the most active homes for sale in a long time. Pandemic low = 3,505 Current - 17,491

The “condo-ization” of ADUs is the primary side effect of failed municipal subdivision processes. If Cities could get out of their own way, people would much rather own “fee simple.” Who wants an HOA?

One side effect of high fees is a drop in compliance. Most contractors want to do the right thing. But when you fee them to death, they have no choice but to skip permits. If the permit is $100, you might get 90% compliance. Make that same permit $5,000 you might get 5%.

Some select fees the City is proposing: Want to replace driveway? Inspection Fee $1,200. Want to re-tap sewer? Inspection fee $2,500 Have a tree? Inspection fee $600 Plan review for tiny home? $2,300 Shit is wildly expensive now. Cheaper to see a Doctor!

As we all know, home prices are continuing to fall. Council is proposing to dramatically raises permitting /inspection fees on small projects and homeowners. The combination of falling home prices and increased costs, will greatly impact the smallest of businesses.

As crazy as it is, Austin continues to lead the nation in home prices decreases. It’s been quite the correction, wonder when we will hit the bottom.

🚨The City of Austin is proposing one of the largest permit fee increases in Texas history. 🚨 This will destroy small businesses and raise the cost of housing. A mom and pop business can’t afford $2,000 on permits for a $4,000 job. Really hope Council steps in.

Wild to think the Guadalupe River jumped 23ft higher in 45 minutes. The River was rising 6 inches every minute. Unbelievable

This is a major positive news development for South Austin. The entire area will change overnight. This shelter has been a big source of crime, trash and the encampments that proliferated through South Austin over the last decade. It’s going feel walkable again.

I tend to agree anecdotally. Prices are starting to touch reasonable levels in some cases. More pain to come on price, but likely a sideways move just as much as a down. However, the change is still filtering through the system, so I bet constructions costs continue to fall.

Austin on an island of its own down there.

The closing statement of some of these “affordable housing” deals are wild. The who’s who of consultants and Lawyers getting paid big bucks. 2-5x market rate deals. I’m talking line after line of payments, dozens.