Affordable housing community planned for South Austin
Two empty lots in South Austin will soon become a new development of townhomes that its developer says will be an affordable option for working families.
The project, called Industry Soma, will be near Menchaca Road and William Cannon Drive and will feature 23 attached townhomes that will be available for households at or below 80% of the area's median family income. In Austin, 80% of the median family income is about $75,000 per household.
“The community we envision for Industry Soma is welcoming, family oriented, safe and one that residents will be proud to call home," said Michael Winningham, principal at Industry ATX, which is developing the project.
"As land and home costs continue to rapidly outpace income growth in the Austin area, we feel it is important to prioritize affordable communities for working families,” he said.
More:A surprising trend in Austin's new home market
Home prices and rent reach record highs in Austin and some renters and homeowners are being forced to leave the city for less-expensive housing in suburban areas and beyond.
The three-month moving average of new home sales for Austin was slightly higher in July, rising to 470 from 460 in June, according to HomesUSA.com. Active listings in the local Multiple Listing Service in Austin jumped to 2,797, well past the 2,129 listings in June for an increase of 31% in the past 30 days, according to HomesUSA.
Despite that increase in supply, new home prices in Austin still increased in the same month, reversing a recent trend of lower average prices. The three-month moving average of new home sale prices in July was $546,978, compared with $541,079 in June. The average new home price is up about $109,000 since July 2021, a 25% year-over-year jump.
The Industry Soma project on Keilbar Lane is scheduled to break ground this week and be completed in the fall of 2023. Industry ATX worked with architecture firm Mark Odom Studio to design the project.
"When we discovered this property it was just a grove of bamboo," Winningham said. "Nothing was there, so we didn't need to demo or displace anybody. It was just lots."
Mark Odom, founding principal at Mark Odom Studio, said the project "will underline our city's housing needs while providing the resources and motivation to serve Austin’s underserved ‘missing middle’. The goal for Industry Soma is a cohesive and dynamic composition with a focus centered on community and enjoyable outdoor living.”
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Plans call for 20 of the townhomes are expected to be priced at $235,000. The 1,042-square-foot units will have three bedrooms and one and a half baths.
The other three units are being built with accessible handicap access, with one of the bedrooms on the ground floor. They will 1,208 square feet with four bedrooms and two bathrooms and will be priced at $265,000.
The townhomes are designed to house families of three to four people.
"Affordable housing is not low-income housing," Winningham said. "We expect to draw people who have lived in Austin as the city has grown, and we're in danger of losing them. These are librarians, educators and your service industry people. This is the lifeblood of this city and we don't want them to move out of the city."
To make the project work, Industry ATX utilized a city of Austin program with Affordability Unlocked, a density bonus program aimed at housing developers. Industry ATX received $3 million in grants, which is what offsets the cost of the townhomes, Winningham said.
"Otherwise, we would not be able to sell these properties for what we're selling them for," he said. "The cost of construction alone would put us under."
Austin voters in 2018 approved a $250 million housing bond. By the end of this fiscal year, 90% of that money will be spent. Austin has built about 6,000 affordable homes using bond money.
In July, the Austin City Council approved placing a $350 million affordable housing bond to a vote for Austin residents to decide on in November. The amount is a $50 million increase from what affordable housing advocates initially called for.
Regarding Industry Soma, Winningham said, "Our city needs to allow experienced developers, community planners and urban planners the ability to create affordable housing in these areas. Land is expensive. The only way to make it affordable is to allow more people to live on it."
At the prices the Industry Soma developer hopes to offer, Winningham said he expects to draw people who didn't think they could afford to buy a home.
"We feel that people are going to qualify and have no idea they would even qualify," he said.
Residents can now apply to purchase a an Industry Soma unit by going to: https://industryatx.com/projects/industry-soma/.
This article originally appeared on Austin American-Statesman: Affordable housing community planned for South Austin
