More diverse housing options, such as apartments, townhomes and condominiums, is needed by Dripping Springs in oorder to accommodate a rapidly populace, according to local experts.
New data provided by Population and Survey Analysts (PASA) earlier this month showed the future of the Dripping Springs housing market and what is needed.
Dripping Springs has become a suburban haven for families across the country largely because of its proximity to Austin and high median income compared to the rest of Hays County.
“You typically don’t have residents from other parts of Hays County moving to Dripping Springs, but an influx of people from Austin,” said Ryan Rodenbeck, a board member for the Austin Board of Realtors. “Compared to Austin, Dripping is still a bang for your buck.”
However, Dripping Springs has some of the highest home prices in Hays County. Rodenbeck said the most recent data only lists seven properties in the Belterra subdivision under $400,000. But Dripping Springs also has a median household income of $113,919, which is the highest in Hays County.
While space could one day be limited in Dripping Springs, which could raise construction costs and create more densely populated subdivisions, Rodenbeck said it’s a healthy trend for a growing city.
“It is essential to have diverse housing options in your city,” he said. “For example, in Central Austin, there was a time when restaurants struggled to stay open because people didn’t live close enough … it also provides more affordable housing options.”
But Dripping Springs will need to diversify its housing market as a new generation prepares to enter the workforce.
Rodenbeck said the city was missing key mixed-use developers a decade ago, but developers are beginning to catch up on trends.
“What we’re going to see in the next couple of years is an increase in mixed-use developments and the demand increases more and more,” Rodenbeck said. “This could be a solution for more affordable housing options in the city.”
PASA CEO Pat Guseman said Dripping Springs is currently at 51% buildout in its housing market. At 100% buildout, she predicts the total population of the school district will sit at around 24,000.
These 24,000 students will need a home in Dripping Springs ISD. Roughly 23% of the current population in Dripping Springs is between five and 17 years old, compared to 17% in the Austin area.
“We have a lot of people moving from Austin and California to escape the urban lifestyle for property and great schools,” Rodenbeck said. “But as the housing prices and population increase, it’s essential to have more affordable housing options.”
For homeowners, Rodenbeck said this is a good thing. He predicts home prices will likely double in the next decade as the city runs of out of inventory.