After decades of explosive growth, Austin, Texas, in the 2010s was a victim of its own success. Lured by high-tech jobs and the city’s hip reputation, too many people were competing for too few homes. From 2010 to 2019, rents in Austin increased nearly 93%—more than in any other major American city. And home sale prices increased 82%, more than in any other metro area in Texas.
Both can be true. But the bigger issue is much harder to solve. If a lot of people want to live in an area, and there isn’t enough space for all of them to live there, then prices will go up. You can build more housing units in the area, and that buys you time, but eventually you are left with the same problem.
The real solution is the area has to be able to expand. You need not just to build more housing, but to expand the residential area into the surrounding countryside. And do that in any sort of useful manner requires good public transportation. It requires building a walkable Urban core. Most cities don’t bother to do that.