AUSTIN: Green Water Treatment Plant & Seaholm Power Plant Redevelopment Update Thread

[ATXboom]

Wednesday, March 5, 2008 - 11:37 AM CST
Downtown living demand is strong, study shows
Austin Business Journal

The steel and glass residential towers set to reshape the downtown Austin skyline aren't a pipedream. They're coming--and they're going to be filled, a new study shows.

The analysis from Texas economist Ray Perryman suggests that while the nation battles a housing correction, Austin's residential market remains relatively healthy. Moreover, says Perryman, there is clear demand among Austinites to live in the city's vibrant downtown.

There are currently about 6,000 people living downtown. And with about 4,000 residential units under construction or planned around downtown, that population is expected to double over the next two years. Perryman says with the Austin area adding more than 40,000 new residents annually, the local housing market will continue to fair well, and rising energy costs and traffic woes will drive a growing interest in urban living.

"This housing market will fundamentally support the type of housing being developed downtown," Perryman said at a morning press conference at City Hall organized to discuss the report. "There is an amble population to absorb these units."

Asked whether those who desire to live downtown could actually afford to purchase units, most of which are over $500,000, Perryman says the market is there, particularly among young professionals coming to the area making good money in expanding fields like technology. He pointed out that if less than 1 percent of the entire area population chose to live downtown, they would fill up all of the existing units as well as those being planned downtown.

"We are seeing a remarkable resurgence in downtown Austin," says Mayor Will Wynn, who has been a staunch supporter of drawing more residents to downtown. Wynn calls the blend of condo projects such as 360 and The Austonian and rentals like The Monarch and AMLI 2nd Street a healthy mix. He also points out that projects like the redevelopment of the Green Water Treatment Plant site will include a strong affordable housing component, allowing residents who cannot afford high-priced units a chance to enjoy downtown living.