Land acquisition makes up 15 to 20 percent of the cost of an average home in the Austin area.
In an article for The Real Deal, Andrew Terrell outlines the city of Austin’s HOME Initiative, which takes aim at housing affordability via density and other zoning and land use changes.
As Terrell explains, “The first phase, approved in December, allowed the construction of up to three homes on single-family lots and streamlined the approval process, making it more accessible and cost-effective for developers. Since it took effect, 160 applications for 300 housing units have been filed, and more than 100 of these applications have been approved.”
Terrell adds that not all neighborhoods are eligible for immediate new development, noting, “Projects in Wildland-Urban Interface zones or areas deemed vulnerable to displacement in the University of Texas’ Uprooted Report, which identifies gentrification and displacement, will face delayed application processes to allow for additional review and consideration of potential impacts on sensitive areas of the city.”
With land acquisition making up 15 to 20 percent of the cost of a home in the Austin area, reducing lot sizes could save over $60,000 on the cost of an average home.
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