Lessons from Austin, where rents came down after massive development of apartments
The high costs of rents came down in Austin, TX after the city made three key policy changes: they tweaked their zoning to allow large apartment buildings near jobs and transit; they used a $250 million bond measure to repair affordable housing; and they reformed permitting processes to speed development and reduce costs.
That's according to a new report from Pew.
After decades of explosive growth, Austin, Texas, in the 2010s was a victim of its own success. Lured by high-tech jobs and the city’s hip r
From the report:
"The efforts worked. From 2015 to 2024, Austin added 120,000 units to its housing stock—an increase of 30%, more than three times the overall rate of growth in the United States (9%). Rents fell. In December 2021, Austin’s median rent was $1,546, near its highest level ever and 15% higher than the U.S. median ($1,346). By January 2026, Austin’s median rent had fallen to $1,296, 4% lower than that of the U.S. overall ($1,353)."
It's wonderful to see policy changes having this good effect on housing.
So... is this proof that abundance is the cure-all for urban housing woes? No, but it does mean that abundance is one important piece of the puzzle.
The Pew study is clear about the limits of the benefits:
"In 2017, the city’s median rent for a one-bedroom unit was affordable to a single-person household earning 95% of the area median income (AMI). Seven years later, that number had declined to 84%."
84% of AMI is still on the high side. For comparison: based on 2022-2023 data, a 1-bedroom apartment at 80% AMI in Atlanta rents for approximately $1,430 to $1,713 per month.
Housing advocates have been clear that the biggest affordability need is for 50% AMI (and less) earners.
So yes, this is a success story. But it's possible to celebrate it and learn from it without claiming that abundance is a singular solution for all needs. Cities still need to also use public resources in targeted ways to provide affordable homes for the lowest income earners.












