Realtors join Broadnax in push to revamp city processes in favor of density

Real estate leaders and the city’s top executive see potential in the city’s recent slates of code changes for land use and building, but agreed that implementing those changes effectively will be what determines their success in addressing Austin’s rising cost of living.

Earlier this week, the Austin Board of Realtors hosted its annual Central Texas Housing Summit, which looked at trends and issues in the local real estate market, including detailed data on the shifting demand from international buyers looking to invest in Central Texas.

In an interview session, City Manager T.C. Broadnax said the HOME and HOME2 initiatives to increase housing density throughout the city will be effective only if the city’s assorted departments connected to development can change their processes accordingly.

“We can lay out all the land use development codes and the request for subdividing lots and adding more units on lots, but if people can’t actually facilitate and put those things in the ground, then it’s just paper and conversations,” he said, noting that expected decreases in interest rates should make it easier for builders and homeowners to begin adding new units to existing large lots. “We’ve got to spend more time making sure that we’re managing our businesses and processes that facilitate the opportunity for people in the private sector to take advantage of what we laid out from a policy perspective.”

Broadnax said he was encouraged by analysis that found the city’s permitting times have decreased from the levels that were found to be costly and restrictive for potential builders. He also said improvements to the technology used for planning and permitting may need to be upgraded to improve transparency and workflows across departments.

“You’re only as good in some cases as the (architectural) documents that you have to interpret and then find a way to make sure you can help people through the processes and not make mistakes, because obviously, people don’t want to tear down things that you did when they’re not reviewed the right way,” he said. “We have got to get better at being transparent about our data so we can hold ourselves accountable, and so people can hold us accountable. … Whether it’s Austin Energy or the Water Department or other large departments that have a role and finding ways when you don’t directly supervise individuals to ensure that they are facilitating your spirit and your approach to how you provide customer service.”

During a panel discussion earlier in the event, developer Austin Sowell said the reduction of minimum lot sizes and ability to build larger second and third units on a property will give builders and buyers more flexibility.

“For the first time in my life, we have an option to deliver these … I hesitate to call them micro-units, but the idea is you can have choice in each specific neighborhood, whether it’s East Austin or Zilker or South Austin, and North Austin, every market is going to have their own demand list in terms of what people are looking for. This allows builders to quickly adapt to what that submarket wants.”

While comparing Austin’s real estate development process to “a sports car with the emergency brake halfway on,” Sowell said Broadnax and other city leaders need to mandate aggressive changes in how infill projects are evaluated so wait times don’t limit the interest in building more housing.

“One of the biggest incentives we could do is not a government incentive,” Sowell said. “It’s a change of culture in the department that comes from the top down with city management and City Council, and treating the Development Services Department much more like a customer service company. I think that’s a cultural shift that would be huge, and something that doesn’t cost taxpayers any money.”

Photo by Tierra Mallorca on Unsplash.

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