Austin housing policy reforms led to significant growth in units and rent declines

After enacting policies to remove regulatory barriers and subsidize affordable housing, Austin, Texas, saw a boom in housing construction.

The city’s housing stock increased by 120,000 units, amounting to a 30% increase that greatly outstripped the national growth rate of 9%. As a result, the city’s median rent declined by more than 16% from 2021 to 2026, according to a report by Pew.

The regulatory reforms included targeted rezoning, reduced parking minimum requirements, and eliminating restrictions on accessory dwelling units. In 2007, the city created a vertical mixed-use zoning category, allowing increased density and reducing minimum parking requirements by 60%.

The city has also encouraged affordable housing builds by implementing density bonuses and using hundreds of millions of dollars in municipal bonds to acquire land for new construction.

Rents dropped 7% in apartment buildings with 50 or more units from 2023 to 2024, the largest drop recorded in any large metro area, and rents in older, non-luxury buildings declined about 11%.