Austin, Texas, a city renowned for its vibrant culture and dynamic real estate market, has seen a significant evolution in housing options. Garage apartments and Accessory Dwelling Units (ADUs) stand out as innovative solutions to the growing demand for diverse and affordable living spaces.
Historical Context
Historically, garage apartments have been integral to Austin’s central city housing landscape. Originating as modest 400-square-foot, one-bedroom apartments, they have long provided economic diversity in neighborhoods. These units symbolize more than just alternative living spaces; they created economic diversity within many central neighborhoods.
Regulatory Changes and Impact
Around 2013, a pivotal change occurred when the City of Austin revised the square footage regulations for ADUs, increasing the maximum size to 850 square feet. This alteration paved the way for two-bedroom units. This shift offered more spacious living options for these secondary units and reflected a growing recognition of the need for varied housing types.
Again, around 2017, the city increased the maximum allowable square footage to 1,150 square feet if there is a first-floor entrance. These two increases in size made the ADU a great candidate for being sold as a separate unit as a condo.
In the past, the city regulated the minimum lot size that allowed the building of an ADU. Citywide, this lot size was 5,700. However, some neighborhoods with NCCDs have a larger lot size requirement, such as Hyde Park, which requires a 7,000-square-foot lot to build an ADU. There is a small loophole. An ADU can be built if you have a lot under 7,000 sq ft in Hyde Park. However, it can not be a “dwelling” which you can manage by having only one sink. The bathroom sink or kitchen can have a sink, just not both.
These increases in allowable size made these ADUs more feasible as dwellings, and we started seeing far more condo B units sold in Austin as these changes took place.
National Trends in Infill Housing
Austin's journey mirrors a national trend towards infill housing – a strategic approach to urban development that maximizes the use of existing spaces. Cities across the country are embracing ADUs as a means to address housing shortages, reduce urban sprawl, and promote sustainable living.
Building ADUs in Austin: Key Considerations
Those interested in constructing an ADU in Austin must consider several critical factors.
City ordinances have historically dictated required lot sizes, and while parking requirements have traditionally been stringent, recent relaxations have made ADU development more feasible. The potential introduction of '3 by right' rules could further revolutionize this landscape, although it presents challenges for existing condominium agreements that may have yet to anticipate such regulatory shifts. Our group tries to anticipate risks for our clients, and condo documents that don’t provide for future changes in development entitlements could create problematic situations for property owners who own one unit of an A/B complex. With the evolution of three by right, who in this two-unit condo will have the right to build the third unit?
Personal Insights
The evolution of ADU regulations reflects a natural progression of urban development. While we might not have foreseen every change, adapting to these shifts is crucial. My current project involves building a garage apartment with provisions for an additional unit. This forward-thinking approach is essential, regardless of whether '3 by right' becomes a reality.
Preparing for Regulatory Changes
Anticipating future regulations is key for developers and homeowners alike. In my project, we ensure our construction plans remain flexible to accommodate potential regulatory shifts. This proactive stance is advisable for anyone considering ADU development.
The Way Forward
The City of Austin's recent decision to waive parking requirements, although still contested by some neighborhood conservation combining districts (NCCDs), marks a significant step towards more flexible housing solutions. However, the full impact of these changes remains to be seen.
As Austin continues to grow and evolve, so must our housing approach. Garage apartments and ADUs offer a promising path forward, balancing the need for density with preserving neighborhood character. Developers and homeowners can contribute to a more diverse and sustainable Austin by staying informed and adaptable.
We are delighted to be your guides to Austin and Austin real estate!
Cheers,
Jen & the team
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