Can CodeNext's Encouragement of Granny Flats Save Austin from its Affordability Crisis?

Owner+Broker Drew Johnson explains the City's proposal to increase urban infill housing. But is it enough to abate Austin's affordability woes?

One thing that unites Austinites is that we love to complain. And rightfully so: with traffic getting nastier and real estate prices getting higher, it costs more money to get less house and spend more time on I-35. One thing we can all agree on, however, is that Austin needs to increase its urban density in order to provide more affordable housing options.

But fear not, brave Austinites! Your City Council is on the way to...uh...supposedly save the day with the 3rd draft of CodeNext! Well, actually, this much needed land development code remains embroiled in controversy, even on its third go-round. In fact, some suggest scrapping it altogether, which would leave us stuck in 1984, the last time the city updated its zoning. Living in the time of Stranger Things isn't as cool as it sounds ,and what's stranger is that nothing will appease the neighborhood associations nor the developers alike. 

So what is something that all parties agree will be a major tenet of CodeNext? Enter the Accessory Dwelling Unit (ADU). This type of small house crammed behind a larger one has more nicknames than a multi-platinum rapper would bestow upon himself. Granny Flat. Garage Apartment. Back House. B-Unit. ADU. Casita Bonita (okay, we made that last one up). But while the idea to widely implement granny flats--which we'll refer to them as from now on--is agreed upon, the question is HOW the City will do it. 

Where will these granny flats go? The City is saying they will be allowed near transportation corridors and activity centers, but not as easily in interior neighborhoods or areas outside the urban core. The City defines the urban core as the area bound by HWY 183 in the north and east, MoPac on the west, and William Cannon on the south side. If they are to be outside of this urban core, they have to meet tighter size and affordability requirements. 

But if I'm gonna live far away and have to deal with Austin's heinous traffic, I'ma at least be able to fit a pool table and a shark tank in my living room. But how big can these granny flats be? Right now, they must be on lots that are zoned SF3, which is a lot of at least 5,700 sq ft, and the limit for the actual house is 1,100 square feet, or .15 floor-to-area ratio (FAR); whichever is smaller. They must have one parking space. However, the CodeNext v3 suggests a tier-based system derived from lot size. This allows for smaller granny flats on smaller lots: a 600 sq ft home on a 3,500 sq ft lot is in the realm of possibilities. The idea is to limit the square footage of granny flats on huge lots to 1,100 sq ft still. The thinking here is "bigger isn't better"...once a granny flat is a certain size, it exceeds the realm of reasonable affordability and thus defeats the purpose of urban density in the first place. 

Proponents of an increased allowance of granny flats call them an organic way to increase density. However, building a granny flat in your backyard isn't economically feasible for many Austinites, nor would they necessarily want someone else living in their backyard. And developers are already building them, just drive down any street on the Eastside. Another threat to the cause is owners over-utilizing them for Short Term Rental (STR) purposes...imagine if your neighbors on both sides were pimping out their granny flats on AirBnB to raucous bachelor parties every weekend. 

In conclusion, while we at ACR believe that granny flats can play a role in helping to promote urban density, we feel that the City Council and CodeNext writers are spending an inordinate amount of time focusing on the small potatoes of urban infill on single family home lots and not the necessary time on the mass scale development that Austin really needs to thrive. Row houses. Transit-Oriented Developments. Affordable condominium communities. Let developers uninhibitedly build so the supply of housing goes up, thus abating entry prices. 

Regardless of your position on how to ease Austin's affordability woes, you can rest easy knowing that Austin Craft Realty has got your back when it comes to finding the most affordable options in town. For example, agent Nick Pierce just helped his client score a 2 bedroom duplex-style condo with a garage in North Central Austin (78757) for under $200k. Or, when agent Callie Gordon helped three of her clients purchase gorgeous brand new homes in SE Austin's hottest new community for under $250k each. Thus, getting a leg up on the competition and outsmarting the market is possible if you have the right agent guiding you through the noise. And did we mention that our buyer rep services are almost always free to you?!

about the author

Drew Johnson

Owner + Broker

Originally from Ft. Worth, Texas, Drew fell in love with the city of Austin as a kid when he was captivated by its eclectically progressive lifestyle and music scene. Drew spent four years at Trinity University earning his degree in Business Marketing, during which time he spent a semester abroad in Sevilla, Spain.

Upon landing in Austin in 2010, Drew hit the ground running by becoming a top apartment locator in Austin before leveling-up to be a Realtor to help folks with buying homes. But being just a Realtor wasn't enough, and Drew had a vision for a brokerage that did both sales and apartment locating at a high level. With this dual expertise, Drew founded Austin Craft Realty in early 2016.

In late 2019, Drew decided to pivot his company towards the fast-paced, fun, and opportunity-friendly apartment locating industry. Already experts in the field, ACR was re-branded to Craft Apartment Locators in October and is no longer be associated with the Austin Board of Realtors. Drew is very excited for the opportunities that come with focusing on what his company does best: helping Austinites find fantastic deals on Austin apartments.

While Drew is no longer a Realtor himself, he has excellent connections in real estate and is happy to recommend a great Realtor to you.

When Drew isn’t working hard to constantly improve Craft Apartment Locators, you might find him bicycling around town, serving on the board of the Young Men’s Business League, playing saxophone at some of Austin's best venues, and enjoying the latest craft brews. He is a proud homeowner in the exciting and vibrant East Austin 78702.