Silicon Hills

Silicon Hills

COURTESY OF: WALLPAPERACCESS.COM

LASA E-ZINE FALL 2021

Table of Contents Letter From The Editors

8

6

Keep Austin Growing

by Shantala Totada

Welcome to A.T.echs

12

by Shantala Totada

14 Saving The World A Ride At A Time

by Mayelin Zavaleta-Loza

The Perfect Tesla For You

by Mayelin Zavaleta-Loza Silicon Hills - 4

18

Apple in the Hills

20

by Sarvajit Madala

24 Apple’s Annual Actions & Austin

by Sarvajit Madala

Capital Gains & Growing Pains

26

by Noah Railsback

32

Austin’s Rising Realty Prices

by Noah Railsback Silicon Hills - 5

LETTER FROM THE EDITORS Dear Readers, The magazine you will be reading about consists of information regarding Austin’s tech and economic growth. We wanted to educate our readers about the city we live in and what is happening in and around Austin. Technology is growing so much each and every day and we want our readers to be informed about Austin’s growth and why. We have thoroughly researched a lot about Austin’s growth and worked very hard to create a magazine that is fun and engaging, but also informative. We hope you enjoy the magazine.

Yours Truly, The Editors

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MEET THE EDITORS Sarvajit Madala is a freshman at LASA high school. Some of his favorite activities are playing foosball, soccer, and going on walks in his community. Sarvajit is interested in technology is because many of the people in his life work for technology companies, and he enjoys tinkering with technology.

Mayelin Zavaleta-Loza is a 9th grade LASA student. She enjoys eating food and hanging out with the people she loves. She also enjoys playing soccer for fun and going out and having fun.

Mayelin has been interested in technology and creating this magazine because that is where everything is headed, and she is intrigued by how technology works.

Shantala Totada is a freshman at LASA high school. She enjoys biking, playing the violin, and spending time with her furry friend, Cooper, a Cavalier King Charles Spaniel and Bichon Frise mix.

Shantala has been interested in technology as many of the people in her life work for technology companies and she is curious about the way technology works.

Noah Railsback is a freshman at LASA high school. Some of his favorite activities include solving math and physics problems and playing video games. Noah is interested in the effects of Austin’s tech growth on the city’s infrastructure, economy, and population.

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Keep Austin Growing Why Austin is growing and the pros and cons of Austin becoming bigger.

By Shantala Totada

Downtown Austin overviewing Congress Avenue during th tech industry and economy.

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Y

ou read the news articles, coming to know about all of these people and companies moving to Austin. And you wonder what is the cause of that.

Austin is the state capital of Texas and is home to approximately 1.1 million

people. Austin has been a popular and growing city home to a growing tech hub since 1957. Austin has many features which attract tourists to move here such as the economic growth, music festivals, numerous activities, lakes, parks and is home to the University of Texas. Austin’s economic and tech growth is mainly due to state tax laws, physical features, an immense amount of land, plenty of opportunities and so on.

Preethi Btv is an engineer at Intel. She has been working in the tech industry for a while.

Btv worked at Intel in California before moving to Austin. According to Btv, Austin’s different culture allows more people to move to Austin, improving the economy and overall population of Austin.

he evening. Austin is home to a growing Photo Courtesy of Aquilla Commercial

“I think the kind of people that live here are much more welcoming, so welcoming in terms of different kinds of community,” Btv said.

“So Austin even handles inclusivity. As you see, we have the largest LGBTQ parade, because we have a huge community that feels accepted. I think Austin has an inclusivity that attracts people from other states. Definitely, the living expenses compared to any other state is much, much, much lower in

Austin. And that also attracts a lot of people.”

“Austin is that perfect mix of different things...It has its own culture, its own vibe...It's a pretty cool place to be whoever you want to be,” Ananthramu said.

Devika Ray is an Electrical Engineer at Intel and has worked in the tech industry in Austin for more than 10 years. She said that Austin has been growing a lot, and it will continue to do so because of companies moving to Austin.

“The growth has been pretty phenomenal in the last several decades,” Ray said. “A lot of companies are moving from California and other places to here.”

California and Texas have many differences, making Californians move to Texas. Btv said Austin specifically has a lot of benefits that people can take advantage of.

“The standard of living was completely different,” Btv said.

“We chose to move to Texas only because of the standard of living, the lifestyle, state taxes, the perks here... And definitely, we knew that Austin was becoming a bigger tech Silicon Hills - 9

industry.”

Many businesses are taking advantage of the low state tax rates and acres of land available to them in Texas. Ray said that Texas is a good place to set up a business because of Texas’s benefits.

“One thing that I heard in Texas, is that we have a lot of land in and around, and often there’s a lot of land that can be developed. The bigger companies are seeing that and they are taking advantage of it and setting up bigger offices

and plants in and around Austin,” Ray said. “In California or somewhere in the West Coast or East Coast, there is no space there honestly, so if you want to set up a big plant, you have to move somewhere Midwest or any other area.

With Texas’s laws here, they do support the big businesses so that way it’s easier and with the tax structure. There is no state tax and Austin is one of the places that is trying to develop further growth.”

While there are some pros to Austin’s fast-growing population, the cons can also impact Austin’s growth. Btv said that because Austin is growing, the infrastructure would become more expensive.

“You’re going to have an immense increase in the population…,” Btv said. “You need the right infrastructure, the required housing to accommodate all these people that come. The commuting is going to take a lot of hits.

Infrastructure will have to build affordability. I don’t think Austin will be as affordable as it used to be just because people from all the other parts of the world are coming in to reveal all the benefits that the state has to offer.”

“We need to keep an eye out on the other infrastructure and make sure it goes along with the city because otherwise it would get quite hard to live here and maintain some lifestyle," Ray said.

Devika Ray, an engineer at Intel, is smiling while standing for a portrait.

Photo Courtesy of Devika Ray

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Deepthi Ananthramu is an IT specialist at the US Government Veterans Affair. She moved to Austin as there were more career opportunities here for her.

Anathramu stated that

Austin will not be able to have the capacity to contain its population if Austin continues to grow, and Texas will lose its cultural and unique style.

“I don’t know if Austin can sustain the infrastructure and population growth in this space for too long,” Ananthramu said. “Dallas and Houston can just keep growing wide unless Buda and Kyle become part of Austin. So I feel overall I think it’s gonna get very saturated in 10 years where construction is gonna become a big thing and smaller housing. Texas will lose its Texan appeal if Austin continues to grow at this rate, because people can’t have big mansions and we’re gonna have to change our lifestyle, which will not be very Texan.”

Many businesses have seen positive and negative impacts come from COVID-19. Some people working in Austin benefited from COVID-19 due to the opportunity to work from home.

“I think having the opportunity to work from home gave a lot of people the ability to work wherever they wanted,” Ananthramu said. “And I know a lot of people who are like, ‘Oh, Austin is a great place, and I would totally live in Austin.’ But they would not have done that because they have to commute to work. But now that that hindrance has been removed, a lot of people moved to Austin. So I think the pandemic definitely boosted Austin’s chances of economic

A map of Austin, Texas listing the locations of different technology companies.

Photo Courtesy of Silicon Maps growth and also grew quite a bit.”

Austin’s new nickname, “Silicon Hills” is inspired in part from San Francisco’s “Silicon Valley” and the hills seen around this landscape.

Many people have different opinions on the name given to Austin. Btv said the name is not very good, because the idea of Austin becoming like Silicon valley is still a work-inprogress.

“I think at this point, we can’t really call it the Silicon Hills because we’re trying to compare Austin with our Silicon Valley in California, and the number of startups [and] the number of technology

companies that we have in the Bay Area,” Btv said. “I don’t think we still have that here.

We are still in the process of growing, we’re still getting these companies… I definitely feel that in the next couple of years, we do have a big chance of becoming the next Silicon Valley.”

Austin is a fast growing city with many opportunities to pursue a career in the computer science and technology industry. As many tech companies move to the Lone Star State, many people come to receive the benefits Austin has to offer. But as the population in Austin increases, so does the city.

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Welcome to A.T.echs!

Timeline of the 10 most popular companies and when they came to Austin

By Shantala Totada

1979

1967 IBM is a computer hardware company. that contributs to making computers for busines applications. IBM established an Austin building in 1967.

Advanced Micro Devices (AMD) is an American semiconductor company.

They develop computer processeors and related technologies for business and comsumer markets. AMD has an Austin location and has been in Ausin since 1979.

Intel is an American technology company and is the world’s largest semiconductor chip manufacturer. Intel built their Austin office in 1999.

1999

Microsoft is a technology company known for their computers, electronics and computer software. Microsoft established an Austin location in 2000.

2000 2007

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Google is a technology company that specializes in Internet related services and products.

Google is also a search engine that many people use every day. Google has an Austin location which has been here since 2007.

Dell is a technology company that designs and develops personal computers and computer products.

Dell established their headquarters in Round Rock, TX and has been here since 1996.

Apple is a technology company that produces many devices and computer software. Apple is a growing company and has been in Austin since 1992.

1992

1996

Samsung is an electronics company that produces electronic devices.

They specliaize in digital media, appliances, semiconductors, memory chips and integrated systems. Samsung has establsihed an Austin location since 1997.

1997

Information provided by Forbes, Britanica, and CNN Business Amazon is an e-commerce company that focuses on AI, digital streaming, etc. Many of us use Amazon to order essential items. Amazon has an Austin location which has been here since 2015.

2015

Oracle is an American computer technology company that makes enterprise software. In 2021, Oracle moved their headquartes to Austin, Texas.

2021

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saving

the world a ride at a time

How Tesla is helping out global warming and others By: Mayelin Zavaleta-Loza

Image co

urtesy of

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"Medium

"

Y

ou are sitting in the backseat of a Tesla Model, sitting still at night. All of a sudden, your body starts pressing back against the seat, your cheeks going out feeling as if someone was forcefully pushing them back. Then you look out the window and see that you are zooming by all the things surrounding the car. But you don’t hear the engine revving or anything of that sort to indicate that you’re going super fast, so what could it be? That’s when you realize that while being in a Tesla, it can feel like a roller coaster.

The electric car company, Tesla was founded in the beginning of 2003 by American entrepreneurs Martin Eberhard and Marc Tarpenning. The name Tesla came from the Serbian American inventor, Nikola Tesla, an idol to

“So that’s why I like Tesla, I like how they’re helping people.”

-Bryndan Perdue

Eberhard and Tarpenning.

There were many sources that helped in the funding like cofounder of PayPal, Elon Musk. This company

Tesla is an electric car company that also sells solar panels, solar roof, along with their own merchandise like clothes and accessories.

Bryndan Perdue, a music artist known as Moscato J & an entrepreneur, owns a Tesla said “I know they said in either 2040 - 2045 or 2050. Tesla wants where California is going — to be all electric cars, no gas cars. So I know Tesla’s working on that right now to make it to where they can.”

This will not only help with having a better ecosystem place to live, as we all know now there are many forest fires. When fires burn, there are many families and animals that lose their homes. Also, not a lot of people have house insurance so they lose all the hard work that they put into their home.

Therefore with having less pollution in the ecosystem, forest fires won’t occur as often which will allow those forests to survive for longer and be safer.

Marc Ewe, a senior at Liberal Arts and Science Academy said “That’s great [there are a lot of teslas]. And then it’s just consciously, you know, it’s better for the environment” Recently California Silicon Hills - 15

Image courtesy of NPR signed an executive order to have all cars and most trucks electric. This executive order states that all new cars and passenger trucks sold in California will be zeroemissions vehicles, which can also help make Tesla or other electric vehicles affordable for all. Another reason why it is important to have electric cars like Teslas is because a lot of animals are going extinct, thanks to their natural system.

“They’re making it more affordable. So that way they can hit that mark and hit that goal”

“It’s amazing that I don’t have to go to a gas pump.”

- Brian Daly Silicon Hills - 16

Perdue said when talking about how helpful Tesla can be.

Driving a Tesla or being in a Tesla is an interesting experience for most people. “ It’s a really different driving experience from driving a gas car. And also the acceleration that an electric car has is easily twice as fast as that of a combustion engine.”

This must be true since any Tesla model can accelerate from 0-60 miles per hour in 10 seconds.

There are also many different interesting features in a Tesla.

There is a feature on Tesla’s called ludicrous mode. This ludicrous mode is where you put the car in drive and it starts going super fast.

“It feels like you’re on a roller

Governor Newsom signing the executive order coaster. Like the G force pushes you back. It just goes to take super fast it’s almost like nitro,” Perdue said.

On the Model X and Y, there is a bioweapon defense mode that’s equipped with a filtration system that filters toxic chemicals from getting into the cabin of the car. Another cool feature is the Sentry mode, where this mode allows you to keep a close eye as to what happens around your car or to your car. That is a Tesla feature that is helpful to their customers because it helps them be less stressed as to what happened around their car while they were gone.

Tesla is also not just helping out with making electric cars and trucks, they are also giving job opportunities. They have produced jobs and had around

70,760 employees total, from 2010 to 2020.

twenty four hours a day,” Daly said.

“I know several people who are

It seems like Tesla is heading in the right direction.

“If you are looking for like a job, I do know they have good benefits.”Bryndan Perdue

getting jobs at the GigaFactory,” Ewe said.

Brian Daly, a proud owner of Austin Detailing and has had 95 % of the cars he has customized are Teslas.

“It’s being built by over five hundred construction workers.

They’re working three shifts to

“I think a little bit of service lacks and that some of the answers that are given from employee to employee are potentially not on the same page,”Daly said.

Many people have said that they love everything about the car but when it comes to getting fixed, there is not a great customer service to go to.

If the car breaks down, it will take from four weeks up to six months to get it fixed since they only have a service center for Teslas in Austin, they are busy and they can’t try to repair all Teslas in Austin at once.

So the only down side to Tesla would be the poor customer service that they have. Another down side of Tesla is that you can’t travel far because there aren’t that many charging places

to visit iconic places.

Now on the good side, Tesla is working on upcoming projects.

Some of the most recent factory projects that Tesla has going on are the Megafactory in Lathrop, California. This Megafactory will be home to the Megapacks, that is a rechargeable lithiumion battery. The intended use is battery storage power stations.

So if the whole world would use electric cars or everything mostly electric, that would help the climate change with reducing the carbon dioxide emissions. That would also applaud the Tesla company along with other electric companies.

If all the states in the US would be going the same direction as California, by 2050 this would entirely change, for the better.

“Everybody wants to help people, but nobody takes action.

So it’s all about actions that speak louder than words.”

Photo courtesy of Austin Detailing

Black and red combo make the most awesome look on a tesla!

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THe Perfect Tesla For You! The ultimate guide to your perfect tesla model

By: Mayelin Zavaleta-Loza

Do you want to help the world out and help reduce the impact the humans are making in climate change? The Tesla electric cars will be perfect for you and everyone to help out mother nature, especially in finding your perfect tesla model. This quiz only includes all long-range model types, for the reason that other models don’t include all the same. For exampe, Model S and Model X only have the Long range and Plaid while model 3 has performance and standard range plus, besides the long range.

On a budget?

Seating up to 5?

No thanks, the more the merrier

Yes! No, make my pockets hurt!

Yes, please 76 ft. cargo capacity and a range of 326 miles?

Yes, Model Y

360 miles range?

25 ft cargo capacity?

No, see other options Yes! Model 3

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405 miles range?

Model X No, see other options!

Model S

Model 3

Safety is tne most important part in the Model 3. In a roof crush test there was a test where this model resisted 4x its own mass which is equivalent to 2 full grown elephants. Performance Breaks and lowered suspension is also included for all weather conditions, with a Cargo capacity of 23 cu ft. The seating is up to 5 and there is a range is 315 mi for model 3. Model 3 includes a key phone feature.

Model Y

The Model Y has an immersive sound system which would be perfect if you love music. It has extra headroom and a seamless view of the sky with expansive glass roof. Tesla Model Y has a mile range of 326 miles (EPA est.) & can go from 0-60 mph in around 4 seconds. The cargo capacity of the car is 76 cu ft. Model Y is worth around $55,000!

Model S

Image by Auto Express

Image by Your Parking Space

The peak power of Model S is up to 670 hp, also with a cargo capacity of 28 cu ft. 405 mi. is the range for this car and it is built on high strength architecture with a floor-mounted batery pack for the occupant protection and rollover risk, which is incredible. Best audio system with 22-speaker, and 960-watt audio system to have best listening experience on the road or even at home. This model is worth around $90k.

Model X

Image by Flickr

There is gaming on almost every Tesla model, but it is featured more on the X. Wireless controller compability also lets you game from any seat in the SUV. Since it is an SUV, there is seating for up to 7 people and it delivers maximum utility.

Model X has the falcon doors along with the front doors opening and closing automatically. The model X is worth around 100 thousand.

Image by Markets Insider

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APPLE IN THE HILLS Why Austin is becoming HQ2 for Apple.

By: Sarvajit Madala

Y

ou are walking around the brand new Apple campus in Austin marveling at the size.

You remember that it is 133 acres of land with plenty of space to walk around outside.

Along with the $1 billion invested into the campus, it is state-of-the-art technology with plenty of storage space to help the current campus.

Apple is a technology company that produces electronic devices and accessories. On November 20, 2018, Apple announced a $1 billion campus in Austin, Texas that will be built across the current campus on Parmer Lane. The campus will initially house 5,000 employees, with the capacity to grow to 15,000, and is expected to open in 2022. The campus is being built because of the growth of the tech business in Austin and the growth of Apple employees across the US. Joe Cunningham is a former manager of the online fulfillment team at Apple, which helps ensure that orders placed online are delivered on time to the customer.

Silicon Hills - 20

“There’s so much employment here, and so many Apple employees that all the sites will get utilized,” Cunningham said.

Apples’ expansion in Austin is amongst many other tech companies. Apple is steadily growing in Austin with approximately 7,000 employees in the city — more than a 50 percent increase in the past five years alone.

“I think it is similar to our expansion outside of Silicon Valley, where you know, as most companies are looking for great talent,” an employee at Apple University, who wished to remain anonymous said. “And, we have found a lot of great talent here in Austin. And it’s also, as you probably aware of, just a city that’s growing just exponentially in and of itself and so people are willing, if talent doesn’t live here already there, it’s a place where they’re willing to move and so it’s just kind of attractive in that sense on multiple fronts.”

Why build a new campus?

Expansion is key for one of the fastest growing

companies ever.

“The campus that we’re on now, we’ve sort of maximized the capacity in the buildings that we have, and we couldn’t build more buildings where we were so we just had to find some sort of real estate up the street.”

“There’s always a space shortage,” Cunningham said.

As far as the impact on the community around Austin, there will be a shift in as new employees move here which drives up housing prices and traffic.

“There’s gonna be a lot of folks that currently work here, they’re gonna move into the new site, and there’s gonna be likely a lot of folks that move here from California, so I think there’s probably some good opportunity for employment for the new campus,” Cunningham said. “And I do think the new campus will affect the surrounding community. I think Apple is just one of these major

Courtesy : Apple Inc.

Projected layout of the new Apple campus when finished.

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Apple Inc. makes its Mac Pro computers at a facility in Texas.

Apple employees are wrapping the computer in film to protect the case.

Courtesy : Apple Inc.

companies that are coming to Austin that will really drive and bring a lot of the money from California to buy houses and things like that. So it’ll cause a greater demand for housing, and drive more traffic.

The new campus will include 50 acres of preserved open space and, like all Apple facilities worldwide, its workspaces will be powered by 100 percent renewable energy.

Kavya Kollu is a location manager in hardware engineering, which makes and verifies Apple chips that go into your iPhone, iPad, Mac, etc. She believes that Apple does have a focus on being more green and sustainable.

“After its presence in the global market, and in the world, it will always prioritize being eco friendly,” Kollu Silicon Hills - 22

said. “I’m sure, not only in terms of the products Apple produces, but also in terms of how we kind of the way we kind of handle the business.

And I think it’s very well aligned with Austin stores because Austin is a very friendly place. And I’m sure that Apple is targeted towards that.”

The opening of the campus creates thousands of new job opportunities for people with all types of experience.

“I think the growth in Austin and the growth that Apple, in general, is providing a lot of opportunities not only for people within the company to grow and develop and progress in their career with the new opportunities that are coming to Apple, but also new opportunities and roles that are being created and expanded in Austin, but I also think it’s an opportunity for people to join the company

that are just embarking upon a career, as well as those that want to work for a company like Apple,” said the anonymous contributor.

“It opens up job opportunities,” Cunningham said.

“And I think a lot of people that go to the big schools here like UT and things like that.

A lot of folks want to stay in Austin when they graduate.

And this will give more opportunities for those folks to get jobs here.”

Jobs created at the new campus will include a broad range of functions including engineering, R&D, operations, finance, sales, and customer support.

At 6,200 people, Austin already represents the largest population of Apple employees outside Cupertino.

“Bits and pieces of a lot of different departments are coming to us,” Cunningham said. “So Austin has traditionally been a focus for America’s operations. There will be a continued focus on the site supporting the Americas operations of the Americas functions. There’s Apple care, there’s tech support, there’s all different functions that support North and South America, and I would guess there’d be a greater focus on the Americas with the new site.”

There are many benefits in coming to Austin with it being able to expand a lot more than other cities.

Photo Courtesy of KXAN

The area is cleared out for Apple Inc. to build their new Austin Campus.

Courtesy : Austonia

“There’s a lot of benefits to coming here. And I think, especially with being able to work from home, there’s going to be a lot of folks that currently live in California that want to move here with the dogs without having to pay those income taxes, you know, if they can work from home.”

The campus has many purposes including creating more space for supplies and employees, supporting multiple locations across the Americas, creating a broad range of functions and increasing Apple’s presence in an ever growing tech city in Austin.

The Apple Inc. Austin campus off West Parmer Lane, pictured under construction here.

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APPLE ANNUAL ACTIONS & AUSTIN

In January 2018 Apple announced a $1B campus in Austin, Texas that will be built across the current campus on Parmer Ln. These are some of the statistics Apple has accumulated over the years.

95B5

BY: SARVAJIT MADALA

Since Apple had their tech empire boom back in 2008 they have had millions of dollars in revenue from iPhones, iPads, Macs, Apple Watches, etc.

4387

EE4E8

BA286

8982

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2005

14.8

2006

17.79

2007

21.6

2008

32

2009

34.3

2010

46.6

2011

60.4

2012

72.8

2013

80.3

2014

92.6

2015

110

2016

116

2017

123

2018

132

2019

137

2020

147

137,000 157,540,000 m 798,000 #8295B5

#1B4387 Over the#BEE4E8 years since Apple #EBA286has #B58982 started growing in 2008 they have attracted thousands of employees.

1.5% of employees in the US are Apple employees

133 Acres of land 3 million sq. ft. of buildings

The campus will create 5,000 jobs when opened, up to 15,000 when completely done

Apple was founded April 1, 1976

$1B SPENT ON NEW CAMPUS IN AUSTIN

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Image courtesy of WallpaperFlare.com Silicon Hills - 26

CAPITAL GAINS AND

GROWING PAINS Peek behind the golden curtain of Austin’s tech scene and take a look deeper into the crisis it created.

by Noah Railsback Silicon Hills - 27

A

ustin has always been a prominent city in the tech industry. During the 1980s, it was host to several high tech companies that are widely recognized today, such as Apple, IBM, Dell, and Samsung. However, Austin’s presence in technology has never come anywhere near surpassing that of California, home to Silicon Valley and more than 1.8 million workers in the tech industry.

Recently, however, major tech companies have begun to move from Silicon Valley to Austin, building new offices and campuses, and, most importantly, establishing thousands of available jobs in the city. This economic opportunity has incentivized thousands of people from other parts of Texas and other states to move to Austin.

The exodus of tech companies from California and the resulting spike in property

prices throughout Austin was no coincidence, however.

Silicon Valley is exceedingly expensive. The median sale price of a home in the valley during 2018 was $1.1 million.

California charges the most income tax of every state, and charges a corporate tax rate of about 8.8%. In comparison, the median sale price of a home in Austin in early 2020 was about $400 thousand. Texas does not impose any income taxes on individuals or corporations. In addition, the University of Texas in Austin provides a steady flow of educated workers who can accept work at prestigious tech companies. Eddie Varnado, an economist who moved to Austin from California believes there are strong incentives for workers and corporations to move to Austin.

“Austin has good corporate tax rates and incentives for tech companies to move here,” Varnado

said; “Austin also has a big university, which provides a lot of young talent, and tech companies often require new skill sets that are taught to new college students, so you need young talent... A lot of tech companies are initially formed in California, Silicon Valley, or east coast tech hubs. And those are mature economies with higher priced costs of living.

Texas offers a more moderate cost of living for employees, so I think it’s also about these companies wanting to move to a place where they can have a more sustainable environment for their employees.”

President of Austin Board of REALTORS Susan Horton also understands the appeal of Austin to outsiders.

“We’ve always known Austin was a desirable place to live- it has just become one of the most popular places to live, and there’s numerous reasons for that,” Horton said;

A view of Google's office building from their new tower being constructed

Image courtesy of James Rambin Silicon Hills - 28

“Our climate… is the best that anybody can ask for. We have cool nights, milder daytime temperatures, great restaurants, wonderful places to visit; you could spend a month here and not see it all. We’ve got a good school system, the music capital of the world… what’s not to love?”

However, to move to Austin, people need housing, and the city’s tech boom has also incentivized those already living there to hold firm to their homes. Then, in late 2020, with inventory lower than ever, demand for housing in Austin

Image courtesy of Eleven Oaks Realty

A home in Meridian

“I’ve seen home prices begin to rise and I’ve seen inventory where the supply was greater than the demand and where the supply was less than the demand... but never like this. This is the first time in my 33 years that I have seen inventory so low that buyers are waiting 12 to 15 months to get a new home built.” Susan Horton exploded, and house prices skyrocketed.

“I’ve seen home prices begin to rise and I’ve seen inventory where the supply was greater than the demand and where the supply was less than the demand… but never like this. This is the first time in my 33 years [in realty] that I have seen inventory so low that buyers are waiting 12 to 15 months to get a new home built,” Horton said.

The lack of available building materials during the pandemic only worsened the housing crisis. The shortage of labor in the lumber industry hiked up the prices to build houses, and further increased the price for which realtors were

willing to sell. From June 2020 to August 2021, the median home price on Zillow jumped from $411 thousand to $594 thousand— a 44% increase in a little over a year. Diane Jackson, a realtor at Realty Austin has seen this firsthand.

“ It’s all gone up. It’s all gone up, period. ” Diane Jackson

“You might have an increase in market values on homes closer to downtown.

In southwest Austin, a home in [Meridian]‚ — a few years ago, it could have been in the high 300’s or 400’s- now we’re seeing houses in Meridian

in the 700’s and the 800’s — almost double what it was.

What’s running that is lack of inventory. That’s what’s driving the prices so high,” Jackson said.

While all of this may just be a simple misfortune or a slight worry for those who recently moved to Austin, it is horrible news for Austin’s poor.

They have been living in or near the city for decades, but now, they are being pushed outwards.

When the attraction of a poor or unsafe neighborhood or area becomes great enough, a person of higher status will usually buy and renovate a home there. Encouraged by the presence of other trustworthy people, more follow. Their Silicon Hills - 29

Gentrification in East Austin

higher status and wage then increases tax rates in the area, forcing those who cannot pay to leave their homes.

Texas does not charge income tax, but the state’s property tax rates are on

another level. Texas charges a 1.8% average property tax rate- the seventh highest rate in the United States. It is this devastating property tax that pushes Austin’s poor out of their homes.

Modern homes being constructed in East Austin's older neighborhoods.

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“Everything is going up in price for them,” Jackson said, “To see that across the board in every neighborhood… for example, in east Austin… a lot of people that live over there, they’re being forced out of their communities. They can’t afford the taxes, because other people have moved in, bought property, and built things on that property that increased the property value. That’s called gentrification.”

Some programs such as Community First Village, Habitat for Humanity, and Foundation Communities are working to get proper housing for people who can not afford it. Despite their hard work, though, they are unable to help everybody.

“I have seen this effect before, because I’ve lived in cities that are going through

what Austin is going through now twice… I’ve seen the good and the bad,” Varnado said, “There’s good that comes from it, but it does naturally come with the locally automated evolution of the culture of the city. I think there will be more money in the city; there will be more money for services; there will be some prosperity from it. But you’re going to find low skilled workers, and old traditional, non-digital jobs suffer. And then with the increasing prices, for cost of living, housing, and other goods, those people get a double impact.”

Even those who did have enough money to buy a home in Austin met several challenges on their way there. Nearly every buyer was forced to overbid for housing. Sellers who were unable to find new homes before their lease ran out had to find temporary living spaces while they waited for available housing.

“They become buyers.

They become in that pool, that competitive pool,” Jackson said.

With so many buyers and so few sellers, Austin’s realty market has become a battleground. The field is filled with incredibly desperate customers.

“This is a truly competitive market, and there is no time during this competitiveness that [buyers] should ever go into this alone.

You need to be in the market for six months to 90 days from your lease expiring and work with a professional, somebody that knows what they’re doing to help your work through

“ Effectively, what you get is pushing out of the lowest tier of workers a little more quickly, and that comes with pain. ” Eddie Varnado

this competitive, competitive market,” Horton said.

Other problems have also arisen as a result of the population boom in Austin.

Roads are crowded with more cars than they were designed to transport and residential areas are crowded with people. Entrylevel jobs are short for staff as tech-related jobs take over the economy.

In contrast, Varnado reports that salaries for those with digital skill sets can be expected to rise. With more money, Austin should be able to grow faster and better meet the demands of its residents. The multitude of new jobs available will provide employment opportunities for people living in Austin and people hoping to move to Austin.

If you plan on moving to Austin, before you take action, make sure to remember these things. Take your time. Make sure you know what you are doing, and be ready for the effects it may have on your personal, social, and work life. Recently, Austin has been incredibly prosperous, but such prosperity comes at a great cost.

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Image courtesy of Chris Nelson Silicon Hills - 31

AUSTIN’S RISING REALTY PRICES

How Austin’s growth has affected the housing market

by Noah Railsback $740K $601K

$462K $347K

2017

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$363K

2018

$379K

2019

current

Data from Zillow

Median Austin Home Price every Year:

$400K

2020

2021

2022*

Austin Metro Area Population Each Year, in millions

Data from KVUE and WORLDPOPULATIONREVIEW

1.83

1.88

2012 2013

1.94 2014

2.00 2015

2.06

2016

2.11

2017

2.16

2018

2.22

2019

2.28

2.35

2020 2021

Austin is one of the fastest growing metropolitan areas in the United States.

Between 2021 and 2020, the population of Austin’s metropolitan area increased 3%, making it the fastest growing large city in the US. This growth has attracted many people from around the country, which has lead to more and more population and economic growth.

However, Austin’s housing market was not prepared to deal with the COVID-19 pandemic and this influx in buyers at the same time. As a result, prices have risen dramatically, making housing unaffordable for many people.

As of October 2021, housing prices continue to rise rapidly.

*Estimate made using linear regression. This shows what the median home price will be if the current trend continues.

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