BG Reads | News You Need to Know (August 18, 2021)
[AUSTIN METRO NEWS]
Austin is Capital of homes selling at super premiums (Wall Street Journal)
A homebuying frenzy is gripping much of the U.S., but Austin takes the prize for the biggest increase in homes selling well above the asking price.
Nearly 2,700 homes in the Texas capital have sold this year for $100,000 or more above their initial listing price, according to an analysis by Redfin Corp. that examined sales through Aug. 11. While a few other U.S. cities have had more properties sell at that premium to the asking price, none have experienced as big a percent rise in homes transacting at that lofty an increase, Redfin said.
“As a consumer, it seems scary to be in a housing market where the home you’re looking at [is] priced at $400,000, then, when you go to put in an offer, you realize the true price is $500,000,” Redfin chief economist Daryl Fairweather said.
The number of homes sold year-over-year for at least $100,000 over asking price has grown nearly 10-fold in Seattle, and fivefold in Oakland, according to Redfin. In Austin, that figure grew by 57 times the number for last year at this time.
The jump in these sales at six figures above the listed price shows how Austin, which has attracted young professionals for years, has become an even more competitive place to buy in recent months.
Startup companies have been flocking here, fueled by the city’s robust job growth, music and cultural scene and amenities such as hiking trails and water sports like kayaking. The city is attracting tech employees and other remote workers from more expensive places like the Bay Area and New York City. Austin is now higher-priced than most U.S. cities, and its cost of living has surpassed that of more cosmopolitan Houston and Dallas. Yet to buyers arriving from Manhattan or San Francisco it often looks relatively affordable, enabling these new residents to bid up home prices… (LINK TO FULL STORY)
Williamson County to sue Austin over hotel for people transitioning out of homelessness (KUT)
The Williamson County Commissioners Court voted Tuesday to request a lawsuit be filed against the City of Austin for purchasing a Candlewood Suites hotel to house people transitioning out of homelessness.
Austin’s plans for the Candlewood Suites, which is located on Pecan Park Boulevard in Williamson County, have been the target of county commissioners and nearby residents since the project was initially approved by the Austin City Council in February.
County officials said the city didn’t communicate with them ahead of the purchase of the site.
"To my knowledge, we asked them to hit the pause button, and let's have a dialogue and conversation," County Judge Bill Gravell said during Tuesday's Commissioners Court meeting. "Let's have a conversation with our residents and with our small business owners. And they failed to do so."
The city-owned site aims to house at least 83 people transitioning out of homelessness. Residents will have access to on-site clinical and occupational services managed by Caritas, an Austin nonprofit specializing in homeless services.
Austin City Council finalized the purchase of the hotel during a meeting last Wednesday. Council Member Paige Ellis voted in favor of the purchase, saying that similar conversions of hotels have been a successful strategy in other parts of Austin… (LINK TO FULL STORY)
Audit: City failing to hire equal numbers of women (Austin Monitor)
While the city has achieved its overall goal of hiring racial and ethnic minorities in numbers equal to the local population, only 39 percent of Austin’s Municipal Civil Service workforce are women, compared to 50 percent of the Austin-Round Rock area population, according to a report by the Office of the City Auditor.
Municipal Civil Service, or MCS, includes most employees except the staff of the Law Department, executives, City Council staff, temporary employees, and police, fire and EMS employees, who have their own civil service organization.
The audit shows that departments vary greatly, both in terms of women hired and in the number of Hispanic, Black and other minority employees. Unlike the city, women make up 53 percent of the workforce for Travis County and the state of Texas, the auditors said.
Auditors analyzed each department in terms of the percentage of men and women within the Municipal Civil Service workforce. According to their analysis, Fleet Mobility Services, Austin Resource Recovery, Austin Water, Public Works and Watershed Protection had the lowest percentage of female employees. In contrast, Austin Public Health, Animal Services, police within the MCS category (not uniformed officers), Small and Minority Business Resources, and Municipal Court had the highest percentages of women workers.
The auditors also wrote that “further analysis of pay throughout the organization may provide insight into inequities. A cursory analysis found that departments with more employees that identify as ‘white’ were correlated to higher average pay.” This problem is not unique to the city of Austin, auditors noted.
The report concludes that current city initiatives are not sufficient to identify and address workforce disparities. Although the Human Resources Department states that “the workforce should closely mirror the community,” auditors found that the directive is absent from guidance documents and “lacks associated performance measures.” Likewise, the city does not have a process to identify which departments’ demographics fail to align with community demographics.
Auditors noted that departments cannot get direct assistance from Human Resources to remedy a lack of minority or female employees unless they acknowledge deficiencies in their recruiting and hiring and ask for help… (LINK TO FULL STORY)
Affordable hop-on jet service launches new flights from Austin to Dallas for $129 (CultureMap Austin)
Travel between Austin and Dallas is about to get an upgrade. Dallas-based hop-on jet service JSX is buckling in for takeoff to Austin. The regional carrier, which offers semi-private air travel at affordable rates, will start daily round-trip service between Dallas Love Field and Austin-Bergstrom International Airport on September 27, with flights running $129 each way.
In addition to its new Austin flights, JSX is also expanding its service between Dallas and Houston, doubling the number of flights offered each day, beginning September 27.
“Demand for air travel continues to increase in our home state of Texas, and we are delighted to add Austin to our route map,” says JSX CEO Alex Wilcox in a release. “In addition to our increased flying between Dallas and Houston, our new Austin route will give Texans what they’ve long been asking for: simple, accessible alternatives to packed commercial flights.”… (LINK THE FULL STORY)
[TEXAS NEWS]
The new Texas COVID-19 surge could be worse than anything the state has seen yet (Texas Tribune)
More Texas hospitals are reporting a shortage of ICU beds than at any other time since the COVID-19 pandemic hit the state 18 months ago — just one sign among many that the health crisis is on track to reach its most dangerous phase yet, health officials say.
The latest surge of the virus has also caused new cases and COVID-19 hospitalizations to rise with record speed to just below their January peaks, as the highly contagious delta variant rips through the unvaccinated community at a rate up to eight times faster than earlier strains, officials said.
“We are entering the worst surge in sheer numbers,” said Dr. Mark Casanova, a palliative care specialist in Dallas and a member of the Texas Medical Association’s COVID-19 Task Force. “This is the fourth round of what should have been a three-round fight. We do have very sincere concerns that the numbers game is going to overwhelm us.”… (LINK TO FULL STORY)
Gov. Greg Abbott tests positive for COVID after jam-packed, maskless GOP event (San Antonio Express-News)
Gov. Greg Abbott has tested positive for COVID-19 but is not experiencing any symptoms, his office announced in a statement to the media. “The governor will isolate in the Governor's Mansion and continue to test daily,” said Mark Miner, communications director for the governor. “Gov. Abbott is receiving Regeneron's monoclonal antibody treatment. Governor Abbott is fully vaccinated against COVID-19, in good health, and currently experiencing no symptoms. Everyone that the governor has been in close contact with today has been notified. Texas first lady Cecilia Abbott tested negative.” The governor is being tested daily, according to the statement, which does not say when Abbott is thought to have contracted the virus.
The announcement comes just hours after Abbott attended a packed event in Collin County where there was little social distancing and almost no one wore a mask. “Another standing room only event in Collin County tonight. Thank y’all for the enthusiastic reception,” Abbott said on Twitter after the event that was estimated to have 600 people in attendance. Abbott was not wearing a mask in photos posted on social media and shook hands with many of the attendees. The speech came in a region that is facing one of the highest rates of hospitalizations for patients with lab-confirmed COVID-19. According to the Texas Department of State Health Services, the hospital trauma service region that includes Collin County has more than 17 percent of hospital capacity taken up by coronavirus patients. The state considers anything above 15 percent to be high… (LINK TO FULL STORY)
Texas Supreme Court says House Democrats can be arrested and brought to the Capitol, siding with Republicans trying to secure a quorum (Texas Tribune)
Texas House Democrats who refuse to show up to the state Capitol in their bid to prevent Republican lawmakers from passing a voting restrictions bill can be arrested and brought to the lower chamber, the Texas Supreme Court ruled Tuesday.
The all-Republican court sided with Gov. Greg Abbott and House Speaker Dade Phelan — and ordered a Travis County district judge to revoke his temporary restraining order blocking the civil arrest of Democratic lawmakers whose absences have denied the chamber the number of present members needed to move any legislation.
“The legal question before this Court concerns only whether the Texas Constitution gives the House of Representatives the authority to physically compel the attendance of absent members,” Justice Jimmy Blacklock wrote in the court’s opinion. “We conclude that it does, and we therefore direct the district court to withdraw the TRO.”… (LINK TO FULL STORY)
[NATIONAL NEWS]
Crypto faces growing legal crackdown (Politico)
Federal regulators are pursuing cryptocurrency startups in court and striking a growing number of legal settlements for rule violations, triggering complaints from the industry and sympathetic lawmakers who say it threatens a growing sector of the economy.
Over the past month alone, the Securities and Exchange Commission, the Commodity Futures Trading Commission and the Treasury Department announced more than $120 million in penalties aimed at digital currency exchanges and other service providers that officials said weren't complying with federal markets regulations and anti-money-laundering requirements. Several states also escalated their own crypto enforcement crackdowns this summer.
CFTC Commissioner Dan Berkovitz said in an interview that some cryptocurrency companies believe "the rules don't apply to them." He said regulators are now vigorously pursuing legal action to protect customers, ensure market integrity and prevent systemic risk. SEC Chair Gary Gensler also warned this month that crypto was rife with "fraud, scams and abuse" and that his agency was prepared to use its authorities "as far as they go" to police the market.
"This should serve as a massive wake-up call to the crypto industry," said Charley Cooper, a former CFTC chief operating officer now with software and blockchain technology firm R3. "A policy or a posture of ignoring Washington or showing disdain for Washington ... will ultimately be a failed strategy."
The enforcement actions are fueling debate about how cryptocurrency players fit into financial regulations. Federal regulators say the new digital currency platforms must adhere to existing rules, but industry players counter that it's not that simple and that it's time for Congress to pass new laws that are more tailored to crypto.
"This regulation by enforcement that we're seeing is not the way to go because it doesn't create good policy," said Kristin Smith, who advocates for the cryptocurrency industry as executive director of the Blockchain Association. "Regulators — in particular the SEC — think that the laws and regulations are crystal clear and that they're very easy to interpret. But for those of us on the other side of the table that are working in the industry and its ecosystem, the laws aren't clear, and it's very difficult to figure out how to apply them."… (LINK TO FULL STORY)