Downtown Austin has enjoyed dramatic growth over most of the 21st century, with a sky full of construction cranes and streets full of more residents, workers and tourists each year.
Like other downtowns nationwide, we now face significant economic headwinds—including rising interest rates and inflation—that have slowed this growth and ushered in uncertainty. The good news is that Downtown Austin is better positioned to weather this downturn than most U.S. city centers. Austin is the country’s second-fastest-growing metropolitan area, and downtown is its densest employment district and hub for state and local government, hospitality and entertainment. Downtown living is in high demand. Although the pace of development has gone from supercharged to steady, a pipeline of well-financed projects shows that Downtown Austin is still a sound investment.
A market correction offers a chance to catch our breath, but this is no time to rest on our laurels. We must attract more people downtown to offset the effects of remote work and decreased consumer spending. Several transformative infrastructure projects are being planned, including I-35, Project Connect, and the Austin Convention Center. When completed, these projects will significantly enhance downtown vitality, but the construction phase will be highly disruptive. Additionally, we face pressing issues around public safety, affordability and homelessness.
No one entity can tackle these huge challenges alone. That’s why the Downtown Austin Alliance partners with so many organizations to find solutions. For example, this year, we worked with the City of Austin and the Texas Department of Transportation to secure a $105 million U.S. Department of Transportation grant to fund caps (surface enhancements) over I-35 from Cesar Chavez Street to 4th Street. We spent the year studying and talking with peer downtowns to learn best practices to mitigate the impacts of construction downtown. We partnered with Mexic-Arte Museum and Red River Cultural District to create cultural preservation and economic development strategies. We joined forces with Urban Alchemy to create the HEART pilot in Austin, which puts dedicated experts on downtown streets to help people who are living unsheltered. And we’re working with organizations such as the Diversity & Ethnic Chamber Alliance and DivInc to find ways small businesses can use underutilized spaces downtown.
This is a city of innovators, widely praised for its collaborative culture. We are better together, and we invite you—our downtown community—to join us as we work to preserve Downtown Austin’s vibe, vitality and value for everyone.