The Carvajal Group Blog

Effects of Expansion: The East Austin Boom

April 18th, 2011

Over the last decade, a gentrification boom has hit East Austin.  Nearly a dozen mixed-use condo and housing developments have popped up in Central East Austin along with new local bars, trendy food trailers, a drive-in movie theater, and hip restaurants.  All these benefits have been accompanied by soaring property values and a clear mixed appearance among brand new modern style homes sitting next door to older homes that are acutely different.

East Austin holds a lot of attraction due to its very convenient proximity to downtown, easy access to I-35 and relatively low property prices.  Tons of new businesses are going up as housing development expands across the area.  Dry cleaners, bike shops and other local businesses are within walking distance for residents.  Many newcomers to the area are enjoying the “new” East side of town but some residents who have lived there for a while see the change in a different light.  Some who have lived there for a decade or longermay be seeing the changes negatively because they may be struggling financially to stay there.  Some families have been forced to relocate and move out of the area, unable to pay the higher property taxes which have accompanied the gentrification.

For sale signs, bulldozers, construction workers and other signs of the neighborhood’s face lift can be seen on nearly every corner.  Older homes that have been renovated can sell, on average, for about $400,000 today.  Homes needing a tear-down can be found for around roughly $100,000 so as you can see, there is a major difference among extremities in property values.  Inner city values have skyrocketed and this will only continue over the next decade.  In the last 10 years, property taxes alone have soared up about 400-600 percent.  According to Austin American Statesman, “The neighborhood is in a census tract that has had an 8-percentage-point decrease in black residents and a 26-percentage-point increase in white residents since 2000.”

With all the development taking over the East side of Austin, residents are seeing major changes.  The spike in cost of living has forced some long time East Austin residents to relocate across town while other people wishing to live near the core of the city are flooding in to enjoy the new opportunities.  You can expect this growth pattern to continue throughout the next 5-10 years.

For more information about leasing and property management or for assistance with your Austin Home Search contact us today at (512) 419-7770.  Also, take a look at our interactive neighborhood map here. Check out our website www.WhatMakesAustin.com to look at all the unique aspects of Austin that makes it what it is.  We are always up to date with the latest market trends in every neighborhood and would love to work with you!

 

Tags: Austin Home Search · Austin Neighborhoods · Austin Real Estate · Austin Real Estate Market