Changes could be in store for Southwest Austin residents and businesses in 2013 as the first of many neighborhood plans to be developed kicks off and the housing market grows, prompting a closer look at local land use.

The city initiated the Imagine Austin Comprehensive Plan in 2008 to direct Austin's growth and redevelopment for the next 30 years. At upcoming meetings, the city is focusing on the South Austin Combined Neighborhood Plan, an Imagine Austin planning area consisting of the Westgate, South Manchaca and Garrison Park neighborhoods. As part of the yearlong process, residents and property owners in that area meet with city staff and identify where they want to see development. City of Austin planner Francis Reilly helped organize the first SACNP workshop Jan. 12.

"Already there is interest in looking at the design and land uses along the commercial corridors," he said. "There's a lot of interest in promoting and making alternatives to driving more viable."

Attendees suggested adding trails, preserving the Williamson Creek Greenbelt, and adding traffic signals and sidewalks. Workshops are scheduled for Feb. 16 and March 23. The resulting plan will be used as a policy guide for local decision-making, said Mark Walters, principal planner with the City of Austin's Planning & Development Review Department.

"Because this plan will be completed while we are in the midst of rewriting the city's land development code, I think this planning process provides the opportunity to see how guidance of that code may be applied to this area when it is adopted," he said.

Zoning must be aligned with the future land use plan, Pegasus Planning & Development President Sean Garretson said.

"Say, for example, some property might be zoned low-density commercial, but the future land use plan says [it must be zoned] mixed-use. That means that if I were to buy that property, I would have to go through that process of rezoning it," he said.

Choosing how to use land depends on demand and potential return on investment. Aesthetic changes also affect land use, he said—more sidewalks can increase foot traffic and draw impulse-driven businesses that need passers-by to survive, and improving the look of a neighborhood boosts appeal, attracting new residents.

Housing market 'booming'

Residential real estate dominates land use in Southwest Austin. The area consists primarily of single-family homes and mobile homes; undeveloped spaces; large-lot single-family homes; and corridors with industrial, commercial and civic buildings, according to 2010 Imagine Austin data.

The region's housing market is booming, said Marc Warshawsky, Realty Austin's Southwest Austin market manager, adding the real estate firm plans to open an office in Southwest Austin this year.

While demand is high, inventory is at low levels, making it a seller's market, he said.

Real estate consulting firm Residential Strategies Inc. said Austin had a 3.1-month housing supply at the end of November; equilibrium is usually six months' worth.

"It's a little bit harder for buyers to buy the house that they want because there's competition," Warshawsky said. Existing communities, like Belterra and Circle C and Meridian, have expanded, he said.

Home builders raised prices in 2012 and will to continue to in 2013, said Eldon Rude, Austin market director for the housing research and consulting firm Metrostudy.

"Southwest Austin—Circle C, Meridian, Avaa, SH 45 and MoPac and now Grey Rock Ridge—has been desirable for decades," he said. "At the same time, there is a limited amount of land developed for single-family housing [in the area]."

Retail, food, health thrive

Residents' median income levels are high, which affects what businesses choose to open in the area, Garretson said.

According to a Community Impact Newspaper analysis, 138 new businesses opened in 2012 in Southwest Austin, a region Community Impact defines as south of Southwest Parkway, west of I-35, north of FM 1626 and east of FM 1826. Of those, 112 were local. Thirty were retailers, 22 were restaurants, 14 were food trailers, 13 were health and wellness businesses, and eight were medical. The most businesses launched in the 78745 ZIP code, with 26, while 78749 gained 22 new businesses.

Businesses offering necessities are thriving, said Leasing Director Joseph Christopher, of Christopher Commercial Inc., which handles leasing for The Shops at Arbor Trails and Escarpment Village.

"With all the new rooftops going up and the new families populating the area, [retailers] want to be the first to fill that household full of everything that [residents] need," he said.

Protecting the environment

Before land development, appraisers use criteria such as zoning status to determine its value, Hill Country Conservancy Executive Director George Cofer said. HCC hires appraisers trained in conservation easement to limit development while helping landowners retain ownership.

"They appraise that property as if it were going to be developed in what appraisers call the 'best and highest use,'" he said.

HCC can make a competing offer to protect environmentally sensitive areas such as portions of the Edwards Aquifer.

There is still land in Southwest Austin to develop, Warshawsky said, adding: "We hope that development is done while retaining open space and green space."