Austin's rapid housing growth and expanding job market have sharply contrasted with patterns seen in Boston, highlighting the Texas city’s transformation from a small college town to a major metropolitan hub. Since 1990, Austin’s population has more than doubled, driven in large part by aggressive housing development policies and an increasingly diversified economy.
City officials and housing experts note that Austin has embraced large-scale construction despite the challenges rapid growth can impose on established neighborhoods. This approach has led to a cooling of housing costs following a peak during the COVID-19 pandemic. Landlords are offering incentives such as extended rent-free periods to attract tenants, and asking prices for homes have decreased.
“Austin has added housing at the fastest rate of any large city over the past decade,” said Alex Horowitz, a researcher with Pew who has studied the city’s housing policies. “That supply increased availability, shifting the rental market so landlords now compete for tenants.” Horowitz contrasted Austin with Boston, pointing out that the former has made building housing simpler, while the latter has lagged behind.
Key to Austin’s approach has been the removal of zoning restrictions that often complicate housing development. The city eliminated parking minimum requirements for new residential projects, made it easier to build accessory dwelling units, and allowed multi-family homes on lots previously restricted to single-family houses. Near the University of Texas campus, the city increased building height limits to as much as 300 feet, spurring thousands of new student apartments.
Rather than mandating a fixed share of affordable units in new developments as Boston does, Austin incentivizes affordable housing through developer perks. This “carrot” approach has reportedly stimulated more construction. A recent study identified Austin as a national leader in affordable housing production in 2024. Its larger geographic footprint—approximately 320 square miles compared to Boston’s 48—also provides more room to expand.
The housing surge coincides with robust job growth. Since January 2016, employment in the Austin metro area has expanded by 44 percent, significantly outpacing Boston’s 8 percent gain. The job increases span various sectors, including technology, life sciences, and advanced manufacturing.
Susan Davenport, head of Opportunity Austin, the city’s economic development agency, described Austin as an emerging “Texas mecca” for businesses and talent. “We’re the capital of one of the largest economies in the world, and it’s still growing,” she said.
Natera, a biotech firm originally from Silicon Valley, relocated its headquarters to Austin, citing lower costs and a business-friendly environment. The company has established significant lab and office space in the city and announced plans to add several hundred jobs as it builds what it calls the world’s largest sequencing facility. CFO Mike Brophy, a Texas native, emphasized Austin’s ability to attract workers and provide affordable housing options, especially for hourly employees—a challenge in higher-cost cities like Boston.
Median household income in Austin, at about $94,000, approaches Boston’s $97,000. However, housing remains more affordable in Austin, enabling residents to purchase homes and access decent schools more readily. Homes near Austin’s city limits often sell in the $280,000 to $330,000 range, prices rarely seen near Boston outside distant suburbs.
Among those benefiting from Austin’s growth are recent arrivals such as supplement business entrepreneurs Bisono and Ginebra. Both transferred their jobs from Boston and see Austin as fertile ground for career advancement and business networking, aided by lower taxes and a climate more akin to their native Dominican Republic.
Settling into a high-rise apartment and forming connections through local activities like jiu-jitsu, the pair reflect the social and economic opportunities drawing newcomers to Austin’s evolving urban landscape.