A local developer is trying to reframe what affordable housing means for potential homebuyers in Austin, Texas.
Industry ATX completed Industry SOMA — its first affordable townhouse community — in the South Manchaca neighborhood in July with the help of Austin-based architecture firm Mark Odom Studio. The project includes 23 townhouses starting at $270,000, almost 40% less than the area's median sales price in October.
Industry ATX CEO Michael Winningham said the developer plans to build 100 affordable townhouses over the next three years in Austin. Two more projects are planned in the Dove Springs area of South Austin. The first, Willows Crossing, is set to break ground early next year.
Inspired by organizations like Habitat for Humanity, Industry ATX was founded in 2021 with the goal to make high-quality affordable housing more accessible in Austin with easier access to work, transportation, childcare and groceries, Winningham said.
“We’re talking about schoolteachers and musicians and firefighters and people who need to be centrally located and not displaced in surrounding cities,” he told Homes.com.
Winningham said the city was a critical partner for the developer's first project, with Austin funding 45% of Industry SOMA’s construction costs, or about $2.93 million.
The city-subsidized projects are being developed at a time when the capital city's housing market has become more cost prohibitive. Austin's median home sales in October topped the state's four major metropolitan areas at $445,000, up 3.1% year over year, according to Homes.com's monthly housing report. Dallas-Fort Worth, Houston and San Antonio all saw year-over-year declines in median sales prices.
The median home price nationwide was $385,000 in October, up 1.3% than the same month last year, according to Homes.com.
Industry SOMA offers townhouses from $270,000 to $290,000 off Keilbar Lane in South Manchaca, about 5 miles from downtown Austin. Winningham said three townhouses have already sold with a fourth set to be occupied by the end of the year. The development features:
- Three- and four-bedroom units ranging from 1,042 square feet to 1,208 square feet with flexible layout options
- Lots with enclosed backyards, terraces and carports
- A communal backyard for neighborhood gatherings
- Charging stations for electric vehicles
“We really try to make our homes appealing in a modern way. Because of our budget constraints, we have to take materials and do something exciting with them,” Winningham said. “I know we were able to achieve that with Industry SOMA.”
The future of affordable housing in Austin
Architect Mark Odom, founding principal of Mark Odom Studio, called Industry SOMA's affordability “huge” for the area, stating it's "unheard of" to find homes under $350,000 anywhere near central Austin. Odom said although some concessions had to be made on the project to keep costs down, the process for designing Industry SOMA wasn’t different than his previous work.
“We can make something with a can of paint look wonderful as long as there’s care and intent behind what we’re doing,” Odom said.
Citing the need to diversify housing and reduce commutes, Odom said there’s demand in Austin for more affordable housing projects like Industry SOMA and a desire to make it happen. But the rising costs of materials, labor challenges and other factors could continue to be obstacles.
“Austin is only going to continue to attract people," so there needs to be a solution to make the economics work, Odom said.
The city's population grew about 3.4% from 2018-2023, according to five-year American Community Survey estimates from the U.S. Census Bureau, reaching nearly 968,000 residents.
Who is eligible?
Industry SOMA's townhouses are available to any household making 80% or less of the city’s median family income. Winningham said a household needs to make at least $60,000 to apply for a home, but some households making over $100,000 could even qualify. Maximum household incomes for eligibility are listed below:
| No. of people | 1 | 2 | 3 | 4 | 5 |
| Max household income | $72,950 | $83,400 | $93,800 | $104,200 | $112,550 |
Source: Michael Winningham, Industry ATX
For households who may not meet those income requirements, Winningham said other financial factors are considered, such as outstanding student loans. The city of Austin also offers $40,000 in down payment assistance for those who don’t qualify.
And Industry ATX isn’t done.
The developer's next affordable housing project, Willows Crossing, has already been awarded a subsidy from the city and is expected to break ground in January. The first of Industry ATX's two planned projects in the Dove Springs area, Willows Crossing will include 38 residences when it’s completed in January 2028, Winningham said.