Home News Austin Locals Priced Out by Wealthy Tech Workers Have Glimmer of Hope

Austin Locals Priced Out by Wealthy Tech Workers Have Glimmer of Hope

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  • Several technology companies and their employees have moved to Austin.
  • Their presence has helped push the cost of housing in cities to unmanageable levels.
  • A new $350 million housing bond is intended to help Austinians struggling with the high cost of living.

Austin’s tech industry is booming, and so is the affordability crisis.

Over the past few years, tech giants such as Apple, Google, Oracle, and Tesla have taken advantage of the city’s relatively low cost of living and business-friendly environment by opening new satellite offices and offices. Relocation of global headquarters to the area.

As the city becomes a bona fide tech hub, thousands of technical employees invading the Austin housing market, 6-figure hefty salaryTaking advantage of the growing demand for housing and expanding income brackets, home sellers are raising asking prices and landlords are steadily increasing rents. price cut Many locals in the process.

Austin’s price growth is starting to slow, but median home prices are staggering $562,212For many Native Austinians, especially when the median household income in the area is $79,542 — far below Average Tech Worker Salary $104,566 – Housing affordability is still out of reach.

Enough of the residents and legislators.

To address Austin’s affordability crisis, city council members and community coalitions proposed a $350 million housing bond approved by voters on Tuesday. It said it intends to use the funds to “create, regenerate and preserve” rental and owned homes.

tax-advantaged housing bonds named Proposition A — which costs the typical homeowner an additional $45 a year in property taxes — is the largest city mortgage bond ever.

Austin Mayor Steve Adler said in July While the city was “bleeding” people, it says the bond will encourage the production of more affordable housing for everyday residents.

“What this bond means is that there is money to ensure that housing projects that will never be built in the market get built,” Adler said in a statement Wednesday. “And that significant funding layer allows us to keep thousands of working-class people in Austin.”

Austin has passed a number of housing bonds over the past decade. Prior to Proposition A, which was approved by voters in 2018, he allocated $250 million to create affordable housing.according to Austin Eligibility Guidelines, households below 80% of the regional median income are considered low-income. For a family of four, Travis County’s regional median household income is $110,300.

Austin American politician report Most of the funds from the loans were used to acquire land, develop new multifamily homes, and address security risks associated with existing homes. However, by 2023, most of the funds will be depleted. Rose to astronomical levels.

This makes the implementation of Prop A more important than ever.

When more tech companies Will likely move to Austin in 2023, which could keep home prices and rents soaring, driving city home prices higher passing As wages rise, residents who earn less than their new tech neighbors may struggle to compete for affordable housing.

Adler said voters handing over the bond shows how seriously the city takes the issue. “This is his third housing bond the city has passed in the last eight, ten years,” Adler said. Said KXAN News. “This is her second passage in the last four years.

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