Voters in Austin, Texas, will decide on Nov. 4 whether to increase a typical homeowner's property taxes by more than $302 a year to help fund or expand programs that address housing and other initiatives.
If passed, tax rate measure Proposition Q would generate more than $109 million during the fiscal year, including $35.5 million that would support individuals and families in securing long-term shelter, according to the city.
In August, the Austin City Council adopted a $6.3 billion budget for the 2025-2026 fiscal year. The 5-cent increase to the tax rate exceeded a state cap and triggered the election.
Austin, home to the Texas Capitol and the University of Texas, experienced a run-up in housing prices in recent years as more people from across the country relocated there. But prices have softened in recent months, as more listings hit the market. Meanwhile, officials are looking to solve a growing homelessness problem.
“Despite a challenging financial landscape, the city is committed to prioritizing essential services for all Austinites,” City Manager T.C. Broadnax said in a statement.
If voters reject Prop Q, the city said it would have to revisit the budget to rebalance revenues and expenditures.
Annual housing costs in Austin keep growing, with retirees and others on fixed incomes not seeing any relief until they hit their senior homestead exemptions, said Ross Melby, an Austin-based real estate agent with Compass.
The measure supports a worthy cause, but if it passes, senior homeowners may be more inclined to sell, adding inventory to an already backlogged and sluggish market, according to Melby.
"The Prop Q increase, though small, is still a perception issue that will leave a lot of homeowners saying, 'Enough is enough,'" he told Homes.com.