Austin Skyline
The Premier Land Development Opportunity

Austin, Texas

North America's fastest-growing tech hub with sustainable population growth, strong employment fundamentals, and prime land development opportunities.

2.3M+
Metro Population
1.7%
Annual Job Growth
$435K
Median Home Price
3.5%
Unemployment Rate

Executive Summary

Why Austin represents a compelling opportunity for land developers and real estate investors in 2026

The Investment Thesis

Austin's land development environment is defined by a complex, layered Land Development Code with base zoning plus combining/overlay districts, high environmental sensitivity (floodplains, watersheds, Edwards Aquifer/Barton Springs Zone), and rapidly evolving housing policy including the HOME initiative and density-bonus tools.

The practical "fork in the road" is whether a deal is by-right or close-to-by-right (fastest, most financeable) versus entitlement-dependent (rezoning, PUD, variances). Austin's process is navigable but requires early coordination with multiple reviewing departments and strong diligence around environmental constraints.

Population rose from 790,390 (2010) → 961,855 (2020) → 993,588 (2024); growth continues but at a slower pace. Housing permits peaked at 50,297 in 2021 and have eased to ~23,190 YTD 2025.

Key Insight

Diligence in Austin is not just about title and survey—it's primarily about yield certainty under environmental and compatibility constraints. Tools like FloodPro and TCEQ's Edwards Aquifer viewer should be "day-one underwriting inputs."

993,588
City Population (2024 est.)
+26% since 2010
22,700
Jobs Added (12 mo)
Top 10 US Metro
$500K
Median Home Price
-3.6% YoY
23,190
Permits (2025 YTD)
Down from 50K peak
$91,500
Median HH Income
Above US avg
509.88
FHFA HPI (2025)
Off 2022 peak of 550

Market Overview Dashboard

Real-time market data compiled from official sources, Redfin, FRED, and FHFA

$500K
Median Sale Price (Jan 2026)
-3.6% YoY (Redfin)
$289
Price per Sq Ft
+0.5% YoY
70 Days
Avg Days on Market
Well-priced: 50-70 days
4.5-5 mo
Inventory Supply
Approaching balance
$1,630
Avg Monthly Rent
-17% from 2022 peak
9.9%
Rental Vacancy Rate
Elevated (opportunity)
3.2-6.5%
Cap Rate Range
Varies by submarket
$7,306
Rural Land/Acre (Austin-Waco)
3-13% YoY

Data sources: Redfin, FRED, FHFA, Census, Texas Farm Credit | Updated February 2026

Economic Drivers & Major Employers

Austin's diverse economy is anchored by tech giants and supported by strong institutional presence

Tesla

HQ & Gigafactory
22,000+ employees

Apple

$1B Campus
15,000+ employees

Dell Technologies

Global HQ
13,000+ employees

Oracle

HQ (relocated)
10,000+ employees

Google

Major Office
5,000+ employees

Meta

Regional HQ
2,000+ employees

UT Austin

Flagship University
51,000 students

Ascension Seton

Healthcare System
10,000+ employees

2-3
Fortune 500 HQs
$155B
Combined Revenue
295,000
F500 Employees

Regulatory & Entitlement Guide

Understanding Austin's development code, approval processes, fees, and timelines

Zoning Code Stack

Base Zoning Districts SF, MF, CS, LI, etc.
Combining Districts -NP, -CO, UNO
Environmental Layers Floodplain, BSZ, Aquifer
Capitol View Corridors Height caps along views
Historic Districts HLC review required

Key Fees (FY2025-26)

Regular Rezoning (C14) Base $1,975.75
Development Assessment (≤5 ac) $9,960.66
Site Plan Public Hearing Prep $1,153.23
Barton Springs Zone Plan Review $3,890
Water Impact Fee (post-10/1/23) $4,800/SU
Wastewater Impact Fee $2,900/SU

Typical Timelines

Rezoning to LUC Hearing 6-7 weeks
LUC to Council Action ~1 month
CUP Process (typical) ~6 months
PUD Minimum Site 10+ acres
Small Infill (1-5 ac) Total 7-16 months
Large Tracts (>25 ac) Total 30-60+ months

Policy & Incentive Tools

HOME Amendments ↑ Unit potential
DB90 Density Bonus Up to 90' height
VMU / Downtown Programs Area-specific
TIRZ (Tax Code Ch. 311) TIF financing
PID (Ch. 372) Assessment districts
Chapter 380/381 Agreements Econ dev grants

Development Timeline by Project Size

30-60 days
Contract + Diligence

Title, survey, floodplain screening via FloodPro, Phase I ESA, entitlement risk memo, utility feasibility

3-12 months
Entitlement (if needed)

Rezoning, PUD, density bonus application. Includes stakeholder outreach, LUC hearing, Council action. Small infill: 3-6 mo | Large: 12-24+ mo

4-18 months
Site Plan + Permits

Multi-department review (12 depts coordinate through DSD). Drainage analysis, water quality, tree survey, TIA. Building permits via AB+C portal.

Ongoing
Construction + CO

Utility permits, ROW permits, inspections (multi-trade + specialty), Certificate of Occupancy

Due Diligence Checklist

Essential studies and their typical costs for Austin land acquisition

Phase Item Why It Matters in Austin Timeline Est. Cost
Day 0-15 Title + Survey Exceptions Identify easements, ROW, restrictions (often controlling) 1-2 weeks $1K-$5K
Day 0-30 ALTA/NSPS Survey + Tree/Feature Mapping Yield + site plan feasibility; supports civil design 2-5 weeks $8K-$40K
Day 0-45 Floodplain Screening (FloodPro + FEMA) Flood encroachment can trigger CLOMR/LOMR 1-3 wks screening $2K-$25K+
Day 0-45 Phase I ESA (+ Phase II if needed) Industrial legacy in east/southeast corridors 2-6 weeks $3K-$8K (I) / $15K+ (II)
Day 15-60 Geotechnical Investigation Bearing, pavement, detention feasibility 2-6 weeks $8K-$50K
Day 15-60 Entitlement Risk Memo In Austin, entitlement IS the value creation 2-4 weeks $5K-$30K
Day 30-90 Utility "Will-Serve" + Extension Study Extension costs can dwarf land basis 4-10+ weeks $0-$25K (studies)
As needed Archaeology / Cultural Resources Required when public land, permits, or known sites 2-8+ weeks $5K-$50K

PSA Red Flags to Address

Floodplain Representation

Tie to FloodPro/FEMA; allocate CLOMR/LOMR risk

Tree Representation

Protected/heritage tree inventory and mitigation

Aquifer/Well Representation

Specify TCEQ/BSEACD compliance path if in zones

Jurisdiction Clarity

City vs ETJ vs limited purpose affects rules

Case Studies & Precedents

Lessons from notable Austin developments for your underwriting

Mueller Redevelopment

Large-Scale Master Planned / Public-Private
Site Size ~700 acres
Dev Agreement Dec 2, 2004
Entitlement Type Master Development Agreement
Key Lessons
  • Long-horizon phasing (15+ years)
  • Infrastructure financing strategy is core
  • Public-private governance de-risks complex sites

Colony Park

Public Land + TIRZ + Development Agreement
Site Size ~208 acres
Dev Agreement Aug 15, 2024
Financing TIRZ No. 20
Key Lessons
  • Incentives + infrastructure are linked
  • Expect multi-year predevelopment
  • Public land changes the capital stack

EastVillage

Large Master-Planned Mixed-Use
Site Size 425 acres
Height Approved Up to 5 stories
Type Mixed-Use Master Plan
Key Lessons
  • Master plans depend on entitlement flexibility
  • Mixed-use leasing + infrastructure run parallel
  • Schedule risk is long but financeable with phases

The Grove at Shoal Creek

PUD via Ordinance
Process PUD Zoning Ordinance
Review Level City Council
Controversy High neighborhood scrutiny
Key Lessons
  • PUDs are legislative and public
  • Expect neighborhood scrutiny
  • Baseline zoning debates drive affordability terms

Statesman PUD

Entitlement + Litigation
Status Court upheld, challenges continued
Complexity Height, finance, environmental
Risk Factor Political + Legal
Key Lessons
  • Legal timeline can outlast market cycles
  • Underwriting should include "litigation carry"
  • Public finance tools can be as contentious as zoning

Land Comp Reference

Publicly Disclosed Acquisitions
6500 Tracor Lane (142.75 ac) ≈$288K/acre
2908 S Congress (1.56 ac) ≈$6.73M/acre
City Affordable (22 ac, 2020) ≈$1.11M/acre
Key Insight
  • Large tract: low per-acre with improvements
  • Prime urban: millions per acre
  • Location + entitlement = value creation

Submarket Investment Framing

Developer-focused land thesis by geography with repeatable screening criteria

Central/Core Infill

Redevelopment Focus

Play: Infill redevelopment, assembly, bonus programs

Constraints: Historic districts, Capitol View Corridors, tight logistics

Products: Mid-rise MF, mixed-use, condo, adaptive reuse

East / Southeast

Corridor Redevelopment

Play: Corridor redevelopment + master-planned adjacency

Constraints: Floodplain proximity, industrial legacy ESA

Products: MF, townhomes, mixed-use nodes, employment

North / Tech Corridor

Master-Planned + Corridor

Play: Master-planned and corridor-adjacent

Constraints: TIA/driveway complexity, utility coordination

Products: MF, townhomes, employment, mixed-use centers

South / Southwest

Environmentally Sensitive

Play: Redevelopment + environmentally constrained

Constraints: Barton Springs Zone, watershed, WUI zones

Products: MF where feasible, low-impact, higher-end

Development Corridors & Areas

Key submarkets for land investment, each with distinct characteristics and opportunities

Downtown / Central Austin

$50,000+ per acre equivalent

High-density urban core with limited land availability. Focus on redevelopment, adaptive reuse, and vertical mixed-use. Premium pricing but strong demand fundamentals.

Best For: High-rise residential, office, hospitality

East Austin / East Riverside

$20,000-$40,000 per acre

Rapidly gentrifying area with transit access (Project Connect). Zoning flexibility and density bonuses available. Strong rental demand from young professionals.

Best For: Multifamily, mixed-use, affordable housing

Round Rock / Cedar Park

$15,000-$35,000 per acre

Strong suburban growth with excellent schools (Round Rock ISD). Dell HQ nearby. Family-oriented residential development with commercial support.

Best For: Master-planned residential, retail centers

Pflugerville / Manor

$10,000-$25,000 per acre

Affordable growth corridor northeast of Austin. Tesla Gigafactory nearby driving demand. Good value for entry-level development with strong appreciation potential.

Best For: Workforce housing, starter homes

Dripping Springs / Bee Cave

$20,000-$50,000+ per acre

Hill Country premium market with scenic topography. Higher-end residential and tourism-adjacent development. Water/environmental restrictions apply.

Best For: Luxury residential, boutique commercial

Kyle / Buda (Hays County)

$8,000-$18,000 per acre

Southern growth corridor along I-35. Among fastest-growing cities in Texas. Excellent value with strong infrastructure investment pipeline. Different codes than Austin.

Best For: Large-scale residential, industrial

Developer Resources & Official Portals

Essential links for Austin land development research and applications

Key Statistics at a Glance

Comprehensive market data for investment analysis and due diligence

993,588
City Population (2024)
+26%
Pop. Growth (2010-24)
$500K
Median Home Price
$289
Price/Sq Ft
$7,306
Rural Land/Acre
$296K
Urban Land/Acre
$1,630
Avg Rent/Mo
9.9%
Vacancy Rate
3.2-6.5%
Cap Rate Range
70
Days on Market
23,190
Permits (2025 YTD)
50,297
Peak Permits (2021)
1.7%
Job Growth Rate
$91,500
Median HH Income
509.88
FHFA HPI (2025)
$7,700
Impact Fees/Unit
2-3
Fortune 500 HQs
51,000+
UT Enrollment

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