June 25, 2024 | Driving It Home with ABoR's Housing Economist

In this episode of Driving It Home, Dr. Clare Knapp co-hosts with ABoR Deputy Director of Government Affairs, Taylor Smith. The two dive into the HOME Initiative, which aims to address housing affordability in Austin with two phases: first is to allow three units by right on all residential lots (approved December 2023) and second, to reduce minimum lot size from 5,750 to 1,800 square feet (approved May 2024). Dr. Knapp explains that these changes will likely lead to a decrease in the price of new homes by reducing land costs and the square footage of homes, potentially cutting home prices by up to 54%.   Dr. Knapp further elaborates on the broader impact of the HOME Initiative on overall home prices in Austin. While the initiative should reduce upward pressure on home prices, strong demographic fundamentals will likely continue to drive demand and price increases. Therefore, the initiative is expected to moderate the rate of price increases rather than cause an outright decrease in prices. Taylor and Dr. Knapp also discuss the importance of the development review process and development fees. Delays and high fees in this process can significantly affect housing affordability by increasing costs that are ultimately passed on to consumers.   The conversation wraps up with Taylor emphasizing the ongoing efforts at ABoR to improve the development review process and advocate for more efficient and cost-effective practices. He invites listeners to join the advocacy efforts and highlights the importance of continual improvements in housing policies to ensure affordability.   Links Mentioned: ABoR Research - https://www.abor.com/research Impact of Minimum Lot Size on Housing Affordability - https://www.abor.com/content/uploads/2024/04/The-Impact-of-Minimum-Lot-Size-on-Housing-Affordability-April-2024.pdf This week's episode transcript: https://www.abor.com/content/uploads/2024/06/DIH-6-25-24.pdf Listen On:  Apple: https://podcasts.apple.com/us/podcast/driving-it-home-with-abors-housing-economist/id1714289732 YouTube: https://www.youtube.com/playlist?list=PLzH_caxJ3VPq5iExWilqZOahnREgSFgqC  Connect with us on socials: https://www.abor.com/socials Connect with Dr. Clare Knapp on LinkedIn: https://www.linkedin.com/in/clare-losey  Have feedback? Email us at [email protected].