Good afternoon, and thank you for subscribing to Building Austin, our weekly newsletter focused on real estate, growth and development in the Austin region. I'm Shonda Novak, the American-Statesman's real estate reporter.

A par-3 golf course is coming to Austin. Reporter Lori Hawkins teed off the Statesman's coverage about the exclusive club.

As development explodes near Tesla's gigafactory in Southeast Austin, one of the latest plans involves an exclusive golf course and wellness retreat.

A new members-only project called Austin Beach Club is in the early stages of launching on 63 acres along the Colorado River. Plans involve a 12-hole par-3 course, with water activities — including kayaking, paddle boarding and canoeing — and wellness classes and retreats as well as dining.

Austin Beach Club is one of a rush of new developments being planned in the area known as Dog's Head, a former sand and gravel mining hub between U.S. 183 and Texas 130 in far East Austin. Long quiet, the area's proximity to both downtown and Austin-Bergstrom International Airport has put it on the real estate radar.

Austin Beach Club founder Lauren Carson sees huge potential in the largely undeveloped space.

"This is a nature getaway 15 minutes from downtown," Carson said. "It hasn't been developed because of its history of mining, and a lot of reclamation needs to be done, utilities need to be brought in. But as Austin grows, Dog's Head is going to be in the middle of the region in the next five to 10 years."

What is Dog's Head?

The region's name refers to about 3,000 acres where the Colorado River forms the shape of a dog's head. Parts of Dog's Head are just miles from Tesla's $1.1 billion electric vehicle plant. Traditionally, the land has been dominated by mining and family-owned ranches.

There are challenges in developing Dog's Head because, while some parts of the area are connected to city utilities, other sections are miles away from water and wastewater lines. In addition, much of Dog's Head is flood plain.

Developers, including Austin-based Endeavor Real Estate Group, are reported to be acquiring thousands of acres of Dog's Head. But considering its mining history, Endeavor Managing Principal Andy Pastor has said full-fledged development will take years. The firm did not respond to requests for comment.

More: Mixed-use project proposed for 390 acres near Austin airport

What is driving growth in Southeast Austin?

A development boom is underway in Southeast Austin, with multiple industrial, commercial and residential projects underway. One example of the growth is Goodnight Ranch, a 700-acre, mixed-use community near Interstate 35 and Slaughter Lane that currently has 1,540 homes on the ground, with thousands more eventually planned.

More: Southeast Austin on brink of development boom

More: Chanel plans Austin manufacturing plant

Also driving expansion is the Circuit of the Americas sports and entertainment venue in southeastern Travis County. Located east of Texas 130 and south of Texas 71, COTA holds year-round sports and entertainment events, ranging from Formula One and NASCAR races to concerts with big-name acts, including the Rolling Stones, Willie Nelson, Elton John, Billy Joel, Kanye West, Britney Spears and Taylor Swift.

Next up for COTA is an amusement and theme park called Cotaland, which will feature a roller coaster and dozens of other rides.

"It adds an active element to Austin's ever-growing entertainment options and provides another boost to Southeast Austin," Bobby Epstein, chairman of Circuit of the Americas, told the American-Statesman last year.

More: Could COTA's planned theme park create a Six Flags-sized attraction in Austin?

What's the plan for Austin Beach Club?

Austin Beach Club founder Lauren Carson is an entrepreneur and founder of solar industry services company Kinect Solar, which she started in 2015.

Carson said Austin Beach Club, which is in the permitting process, is designed to create a community for startup founders, downtown tech workers, families and anyone else interested in outdoor recreation.

The property at 9521 Hergotz Lane, which is valued at $1.3 million according to the Travis Central Appraisal District, was originally a homestead and ranch owned by the Hergotz family, which has longtime roots in the area. The goal is to open the golf course in July 2024. The site also will include walking trails and a club house.

"The property is so magical. We have downtown views, and there's just a feeling you get when you go out there," Carson said. "Whether you want to golf or just decompress, this is about getting into nature and connecting with other people."

The golf course and other recreational services will be open through evening hours, which Carson believes will fill a niche for entertainment.

"What do you do if you want to spend time with people and you don't want to go to a bar?" she said. "You don't have a lot of options. We want to be that place."

Currently, entry tier membership is $5,500 a year and includes one day of play per month as well as access to water activities and remote working space. Top tier access is listed at $9,500 a year and includes unlimited access to the course, which will be open until 2 a.m.

Who is designing the Austin Beach Club course and how is golf changing?

Austin Beach Club's golf course is being designed by Roy Bechtol, president of Austin-based planning, landscape and golf architectural firm Planned Environments. He has developed courses at the Barton Creek Resort, the University of Texas Golf Club and Escondido in Horseshoe Bay.

Bechtol said he believes smaller courses like the 12-hole planned at Austin Beach Club is the wave of the future.

"Golf is a demanding game, to say the least. I think you're seeing a move afoot with younger millennials to play in a way that takes less time and is more fun," he said. "This just opens it up to so much more of the populace to fall in love with the game. It's a much quicker way to spend the day."

A 12-hole short course can be played in two hours, versus an average of four to six hours to play 18 holes.

"What we're trying to create at the Austin Beach Club is to play real golf, get outdoors, get away from computers," said Bechtol, who is collaborating with course designer Jim Fazio Jr. on the project. "It's a way to get the whole family out in a fun environment."

Steve Termeer, general manager at the UT Texas Golf Club, said courses like the one planned at Austin Beach Club are what many players are seeking.

For starters, he said, COVID-19 fired up the sport, as people sought outside activities. But the options in Austin are limited, he added.

"In Austin, we are so under-golfed it's unbelievable — we're probably five to seven courses short," said Termeer, who worked with Bechtol on the UT golf course. "They're so difficult to build and so costly. Just the cost of entry now is probably five times from where it was 20 years ago."

Termeer said sites like Austin Beach Club can help fill the demand.

"Where they're located, your downtown business folks can zip over to play pretty handily without battling traffic," he said.

What Austin Beach Club members are saying

Even though the plans are in the permitting process, Austin Beach Club already is signing on members.

They include Alex Ellis, who works in real estate and grew up in Austin playing at Lions Municipal Golf Course and other courses around Central Texas.

"I really like the idea of a par-3 course rather than an 18-hole round," he said. "At Lion's or any other course, you're going to be out there for five hours. There really hasn't been anything new golfwise in the Austin city limits in a long time. This lets you get in town, play golf, and you can get back to your family or work."

Daniella Rosa, founder and CEO of Austin-based women's golf apparel firm AIEA, joined Austin Beach Club after hearing about the concept.

"I think of myself as a casual social golfer. They're taking away the stuffiness of the golf world. It's coming out of this next generation of golf," Rosa said. "People are looking to get out to exercise, to be outside with friends. It's not like 'what's your handicap?'"

Rosa said she sees Austin Beach Club as the future of the sport: "I feel it's going to be the blueprint for that casual golf club around the country. It's what people are looking for — a way to get out and connect and have fun."

Appraisal notices en route to Travis County property owners

For the first time in years, Travis County homeowners shouldn't face sticker shock when they receive their annual appraisal notices.

The Travis Central Appraisal District has started mailing notices of appraised values for 2023 to 434,362 Travis County property owners. The notices, which will be sent between mid-April and early May, include the market value assigned to a property as of Jan. 1, as well as the taxable value of that property based on its exemptions.

For 2023, the median market value for all homes is $612,568. That's an increase of about 0.08% over last year's final adjusted median market value of $612,102, the appraisal district said Friday. Based on preliminary numbers, last year's market value was initially reported as $632,208, a 53.6% increase over 2021.

Meanwhile, the median taxable value increased 8.9% this year, to $375,978 from $345,286 last year, the appraisal district said. The taxable value (the market value minus exemptions) is used to calculate a homeowner's property tax bill later in the year when the various taxing entities set their rates.

More: Travis County median home value jumps to $632,000 — a $200,000 increase over 2021

More: Travis County median home value jumps to $632,000 — a $200,000 increase over 2021

Updated market values will be posted on the Travis Central Appraisal District website at traviscad.org in the coming days.

A homestead exemption is the easiest way for a property owner to lower their property tax bill, said Marya Crigler, chief appraiser for the appraisal district.

“State law protects property owners from seeing drastic increases in their taxable value if they own and live on a property," Crigler said. "For property owners with a homestead exemption, your taxable value can only increase to current market value or by 10% over the prior year, whichever is less.” The deadline to file for an exemption is May 1, she said.

Overall, the Travis County appraisal roll this year increased 13% to $485 billion, led by strength in the industrial, retail, apartment, and hotel sectors, Crigler said. That figure includes an increase of less than 2% in residential properties, a 20% increase in commercial properties and $5.2 billion in new construction.

“The data tells us that the local housing market is stabilizing and returning to a pre-pandemic normal,” Crigler said. “But the retail, hotel, multifamily and industrial sectors continue to see strong growth.”

How is the Austin-area housing market faring?

Last year ended with the median home-sales price in the Austin-Round Rock region setting an annual record, with half of the homes in calendar 2022 selling for more than $503,000 and half for less.

As the year progressed and mortgage interest rates continued to climb, the Austin-area market saw fewer homes selling, homes taking longer to sell and more sellers lowering asking prices.

Both across the region and within Austin's city limits, home sales have been declining since March 2022 compared with the same months the year before, according to the Austin Board of Realtors. And the median prices for those sales also have been declining since late 2022 year-over-year, the board has said.

More: Home sales plunge; median prices fall in Central Texas housing market

In January, median home-sales prices fell in the city of Austin, Travis County and the Austin-Round Rock metro area. But surrounding Central Texas areas are seeing median prices rise as buyers move further out seeking more attainable housing, Ashley Jackson, president of the Austin Board of Realtors, said in a February news release.

“Outlying areas like Caldwell and Hays counties are the most affordable pockets in Central Texas," Jackson said. "When we have a city like Austin challenged by affordability, the entry point in surrounding areas will slightly increase as people try and find neighborhoods they can afford."

As mortgage interest rates have risen, the slowdown in Central Texas' housing market this past year has led to more leverage for buyers, real estate agents and board officials have said.

In its February report, the board said the Austin-area housing market "is trending in the right direction" as it continues to find its post-pandemic footing. Buyers are continuing to gain more bargaining power, as an increase in the supply of homes has fueled growing confidence among real estate agents and homebuilders, the board said.

More: Home sales, median sold prices topple in Central Texas housing market

In recent months, experts have said that although home sales and the pace of home-price growth have slowed as interest rates have risen, the region's job and population growth point to a positive outlook overall for the Austin-area housing market.

"For those that hope that their tax bills will go down year after year, they unfortunately will be disappointed again this year," Mark Sprague, a longtime local housing market analyst with Independence Title, said in an email Thursday.

Sprague said median home-sales prices have dropped, but only because rates have gone up.

"Every time rates go up 1%, the buyer loses 12% buying power," Sprague said. "Since the first of last summer, the consumer has lost (about 40%) of buying power. The values of local real estate have not gone down, the consumer just can buy less due to the loss of buying power. Therefore ‘median’ values drop."

Sprague continues to say that the region has an undersupply of housing, "meaning demand continues to outstrip supply, driving values up," although not as aggressively as in the past few years, he noted.

"Because of the lack of inventory and housing starts, we continue to see a strong market — not as robust as the last few years — but strong," Sprague said. "With the amount of job creation and lack of inventory, values should maintain. Job creation will continue to drive demand. If you're waiting for values or rates to drop dramatically, based on the current inflation, inventory, demand, etc., you won't see it."

More: Is relief in sight for Austin-area apartment renters? What you need to know

What headwinds loom?

Housing experts say there's evidence the tide of newcomers into the Austin region is slowing. And there could be other headwinds over the next several months as the economy sputters, interest rates continue to climb and affordability challenges persist.

Experts have said sharply rising home prices in recent years have added to affordability concerns and may be causing the metro area to lose some of its appeal. Continuing tech layoffs also could slow the number of people moving in.

"A key concern as we move deeper into 2023 is whether the U.S. economy enters a recession, which would result in additional headwinds for the new home market," Eldon Rude, who has been tracking the Austin-area housing market for more than three decades, said recently. In his 20th annual housing-market forecast in February, Rude said the market has been in a recession since May 2022, when the Federal Reserve's mortgage interest rate hikes aimed at curbing inflation began taking a toll.

More: What's ahead for the Austin-area housing market? Check out these highlights

Said Rude: "In addition to some would-be home buyers being priced out of the market due to higher interest rates, builders will sell fewer homes this year because the pace of in-migration into the region has slowed compared to the torrid pace we saw in late 2020, 2021 and the first half of 2022. Evidence of the slowdown in in-migration include builders reporting fewer relocation buyers in recent months, as well as the sharp slowdown in the absorption in apartments in 2022 compared to 2021."

What's involved in the appraisal protest?

Property owners who believe their property’s market value is incorrect have the right to file a protest with the appraisal district. The deadline to file a protest is May 15, or 30 days after a notice is mailed, whichever is later.

Travis County property owners are encouraged to file their protests through the appraisal district's online portal. Property owners who file there can upload their evidence, review the appraisal district’s evidence and review a settlement offer through their online account. Protests and evidence also will be accepted by mail and in person at the Travis Central Appraisal District's office at 850 East Anderson Lane.

The informal process, which allows property owners to receive a settlement offer from the appraisal district, will begin April 17 and end June 30. During that time, property owners will have a chance to discuss their property with one of the district's appraisers and potentially resolve their protest.

More: What's ahead for the Austin-area housing market? Check out these highlights

Property owners who do not accept a settlement offer during the informal process will have the opportunity to present their case to the Travis Appraisal Review Board, an independent group of citizens authorized to resolve disputes between taxpayers and the appraisal district. Board hearings are expected to begin in June.

“Property owners who do not receive a notice in the mail are encouraged to review their property on our website to avoid missing the protest deadline,” Crigler said. “Submitting your protest early will give you more time to submit your evidence, schedule an informal meeting and resolve your protest.”

The appraisal district will host a webinar on the protest process at 11:30 a.m. May 3. Registration is available at traviscad.org/webinars.

Property owners can find more information on market values and the protest process on the appraisal district's website, traviscad.org.

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This article originally appeared on Austin American-Statesman: A par-3 golf course and wellness retreat is coming to Austin