Do you believe downtown Austin is overbuilt?   If you do, I don’t blame you for thinking that.  Over the past two years, the traditional local media outlets have delivered an array of sensational headlines, like “Condos Caught By Crisis At Last“.  But, dig a little deeper and you could find a new perspective based on data, rather than some columnist leading a band wagon.

At the Downtown Austin Blog, we are passionate about downtown and urban Austin real estate, but we can recognize that prices have softened.  In fact, we think that’s a good thing – more people can afford to move here!  As much as I’ve railed against certain Statesman columnists for their curmudgeon style sensationalism, ironically, perhaps it was those stories that drove this summer’s buying spree.  If you advertise a sale, then you expect buyers to come.  That’s what happened.

We’ve written about the auctions and discounts.  We’ve observed how an average 25% – 30% discount will clear out a building quickly – like 90 minutes quick. We’ve seen this at Brazos Place, at 360, and at the Shore where residences which had been trading at upwards of $400 per foot in 2007 are for all intents and purposes gone.

NOW WHAT?

Recently, you might have heard former Austin Mayor Will Wynn’s radio ad for downtown living.  I’ve only heard this ad on KGSR, but it could be playing elsewhere.  Click below to listen to it.

This advertisement directs you to a website called downtownaustinfacts.com.  The goal of this website is to combat mis-information about downtown Austin being over built.  To quote the website…

While many people believe that the Downtown Austin condo market is overbuilt, the fact is only about 400 new condos remain for sale downtown. With the economic downturn and continuing tight credit markets it is very unlikely that any more new condos will be built downtown for at least another 5 years. That means there are only 400 new downtown condos for sale for the next 5 years.

By my count this number is low.  If you only count Spring, W Hotel, Four Seasons, and the Austonian, then 400 units is close to accurate.  If you include the remaining units at the Sabine and 904west, (those are rehabs, not new construction) then the number is closer to 475.  Those extra 75 don’t make a big dent in the argument, however.

THE INVENTORY IS LOCKED IN.  You will not see any new projects come out of the ground until at least 2013, perhaps longer.

Here are more facts that DAB has come up with.

1) # of downtown Austin condos available for sale and ready for immediate occupancy = 284, approximately (156 in MLS + 128 Spring units, not including 44 units at Sabine)
2) # of downtown Austin condos under $300 per foot = 42 (from MLS, not including the 44 units at Sabine)

By and large, the new product under construction in downtown Austin is considered luxury product.  Downtownaustinfacts.com makes this point salient, even if not overtly.  Sabine will go to auction, soon, and then what is left that’s under $300 per foot?  The answer: only resales.  Over the next few years expect this shortage to drive demand for resales.

The past few years have been dominated by new construction.  That’s over.  The remaining inventory of new construction in downtown Austin happens to also be the most expensive.  We can speculate on pricing discounts, but until those buildings are complete, and we see contracts converting to closings, it’s too early to tell what the velocity of sales will be, and how aggressively they will negotiate with buyers.  What the data clearly shows is a shortage of attainably priced homes in downtown Austin.  There is no slowing the demand for downtown living.

-Jude

Austin City Life is a diverse, Christ-centered, city-focused church that hosts its services at Parish club on E 6th

Great cities have diverse populations practicing many forms of religion.  Downtown Austin, recently one of the most rapidly growing neighborhoods in Austin, has since the 19th century been a destination for religious services for the entire city.  So much interesting history is contained in a handful of downtown Austin cathedrals.

People are drawn to downtown for the active and walkable lifestyle, entertainment, and outdoor recreation.  Much less visible is the demand for places of worship.  I’m not suggesting that people move downtown because of the historic venues.  I am suggesting that once people move downtown they discover these venues.  Most of my clients are couples in their 30s-40s (most without children), empty nesters, and singles.  While more and more families move downtown every week, I’ve observed a new genre of religious organization emerge that lacks the legacy of Austin’s historic churches, but provide a modern and accessible message.  Many of these groups choose to rent spaces like the Austin Music Hall to conduct their services.

In researching this post, I rediscovered Scott Schalchlin and his blog “The Gospel According To Austin” where he shares his experiences at several churches around Austin.   One in particular drives home the point that there is something for everybody… checkout Austin City Life at the Parish club on E 6th Street.  This is a non-denominational church that reaches out to Austin’s creative class and embraces new urbanism.

I’ve added a handful of places of worship to the Official DAB map of downtown Austin.  Please use the comments to let me know of places I’ve overlooked.

Cathedral of Saint Mary
St. David’s Episcopal Church
Central Christian Church
Central Presbyterian Church
Chabad House
Nueces Mosque (aka Downtown Mosque)

-Jude

Austinites Beautifying a Local Bus Stop

Regular readers of the DAB know I primarily ride public transportation, and while I am a proponent of using our bus system to the fullest, I am also aware of some problems with our current system.  In my “Carless and Hopeful” post in June, I mention one of my dislikes about riding the bus is the actual bus-stops/shelters.  Some bus-stops do not have benches, some benches are not covered, and MOST bus-stops are a little depressing in terms of their look and feel.  That’s why when my friend, Alissa Schram, a CapMetro employee, told me about the Adopt-a-Stop program, I got a little pumped.

Here’s the low-down:

Local organizations and business (or individuals) can “adopt” bus-stops and essentially “decorate” them and keep them clean.  And it’s only a one-time fee of about $40 (to pay for installation of a sign with your organization’s name).  Note that additional decor/etc, will of course cost more.  It’s really a simple program and idea, and one that’s been successful in other communities (here is a write-up from a city in Australia that uses the program).

This program is not new (and definitely not unique to Austin), but it’s also not well-known, so I thought I’d share it with our faithful readers.  The vision I have is actually one where our Condo Associations adopt their nearby bus-stops, increasing their curb appeal and making these community service stops an extension of their buildings, giving them each a unique feel/vibe, and thereby enhancing the downtown Austin neighborhood and making it a more beautiful and interesting place to live, work, and play. With the vibrant art community that Austin has, I’m surprised that some of these city stops have not been claimed and re-tooled already.

For more information or for answers to any questions not addressed on the Adopt-a-Stop web page, you can contact Alissa Schram directly at Alissa.Schram AT capmetro DOT org.

And here are some pics of some really cool bus stops from all around the world, to maybe give you all some inspiration to get your condo association or company to join up (not that all of these would be a good idea – or even possible – for actual bus stops in Austin, they are just neat):

The Downtown Commission approved tougher rules against panhandling.  There were no objections from public input.  The DC’s recommendation will now be presented to Austin City Council for approval.  If the new ordinance is passed, then it will be illegal to panhandle at any time of day, rather than just at night time as it is currently.

Dozens of groups were at the table, notably social services like Caritas and the ARCH, in support of drafting new ordinance language.  When the staff of the ARCH is in favor of something like this, we should expect Council get behind this, too.

Beth Atherton, executive director of Caritas, says most people think panhandling is a homeless issue.  But she says most people who panhandle are not homeless and the best way to help the less fortunate is by giving time or money to agencies which provide services for those without.

Video on KVUE