Upzoning in Austin, A Cautionary Tale

The video Subdivide and Conquer documents the fight over upzoning in Austin, Texas. It highlights the language that is being used to divert attention away from the truth that density does not equal affordability.  It asks the questions, “Who wants this” and “Who will Benefit from it.” The answers are the same … developers.

A re-zoning plan called “HOME” was sold to Austinites as gentle, incremental, densification in two phases.

Phase one would allow 3 unites on every residential lot.  Phase two would create a new lot size allowance of 2500 square feet which could equal 6 to 8 units depending on the original lot size.  This in turn requires building regulations to be altered, such as decreasing impervious cover regulations, (anything that does not allow rainfall to be absorbed into the ground), loss of trees, parking regulations, etc. 

Phase one passed on December 7, 2023 with a 9 to 2 majority.  An internal report written by City of Austin housing staffers highlighted concerns regarding loopholes in phase one that negate it’s claim of creating affordable housing.   

The primary areas of concern in phase one as stated by the city housing staffers were:

1-It does not have FAR, floor area ratios, for three units, which can limit the possibility of McMansions. 

2-The increase in the value of the property with these new development possibilities would incentivize owners to sell or develop, thus displacing the current renters.  Austin has experienced a similar jump in home values since the pandemic with single family homes doubling in price since 2019. 

3-Taxes would increase based on the value of the land rather than the value of the home.

Bozeman is facing a similar challenge.  How do we create affordable housing while protecting our current residents, both renters and homeowners?  This is a cautionary tale, and we should consider it a warning.  Who really stands to benefit from up-zoning?