Austin is launching a new effort to house and retain teachers as rising costs make it harder to live in the city.
A widening gap between teacher pay and Austin housing costs has created an affordability crisis for district educators. This year, the Austin Independent School District took a step to address that problem by redeveloping the Anita Ferrales Coy facility, formerly Allan Elementary, into mixed-income housing that includes units for teachers. District leaders say the project could become a model as Austin ISD faces a growing number of soon-to-be vacant campuses and looks for ways to help educators find affordable housing.
"We are doing everything we can within our purview of influence," said Superintendent Matias Segura. "One of the things we have to realize is we are in a much larger market and many of the things are outside of our control, which is why this project is so creative."
Segura said while some may see the project as a small start, the district must begin somewhere to address a growing need for teacher housing. His hope, he said, is to build upon the project's momentum to create a broader network of housing support that makes a measurable dent on affordability in Austin.
Construction is already underway behind the fences at Gonzales Street and Shady Lane that surround the former school in East Austin's Govalle neighborhood. When complete, the project will dedicate half of its 675 units to income- and rent-restricted apartments for Austin ISD teachers and staff, essential workers and other Austinites struggling with affordability. The project will operate under a long-term ground lease agreement between Austin ISD and The NRP Group, which means the builder pays AISD to use the district's land, creating a revenue stream for the district. The arrangement allows the district to retain control of the land while the developer owns the housing.
The first phase of construction began in February, with the second and final phase expected to begin later this year. Once complete, 10% of the total units will be reserved for households earning up to 60% of the Area Median Income, or $80,280 for a family of four, and 40% for households earning up to 80% AMI, or $104,200 for a family of four. Austin ISD teachers will receive priority leasing through a Preferred Employer Program. The income required to afford rent in Austin, according to an analysis by real estate site Zillow, is nearly $69,000; the average Texas teacher salary as of 2025 is just under $64,000, more than $10,000 less than the national average.
As a former educator, Austin ISD Trustee Candace Hunter, who leads the district's Public Facility Corporation board, said she initially had concerns about an employer serving as an employee's landlord. After learning the district would retain ownership of the land but not the building, she became so excited about the idea that she was willing to lead the board overseeing the deal.
"Schools have always been the place where the community goes to, now even more for food and clothing and sometimes in extreme weather conditions, shelter," Hunter said. "What better homage could we have for our community than to give them a place where they can remain in their community at an affordable price?"
Nick Walsh, vice president of development for The NRP Group, said the project will provide a rare affordable housing option close to transit, jobs and city life in a desirable community. The development will include two- and three- bedroom apartments at rates up to $1,000 less than nearby properties, a rarity in the area.
Solutions for a larger problem
In a previous effort to address housing affordability, the district worked with developer Taylor Morrison and Habitat for Humanity to build 30 homes on land previously owned by the district, seven of which were income-restricted. Austin ISD social studies teacher Steven Caplan bought one of the homes offered at a lower rate for district employees through Austin ISD and Habitat for Humanity. Caplan said he and his partner, who also teaches in the district, considered moving but wanted to stay in the community where they teach. He said he is grateful for his home and the low mortgage that allows them to continue to be public school educators.
"I love my job," Caplan said. "I never would want to give it up just for money."
American Federation of Teachers President Randi Weingarten said the organization has worked to create affordable housing and said it is a difficult undertaking that depends on strong partnerships with developers. She said the problem is much larger than a single district and requires help at the state and federal levels to create bold solutions for the working class.
"It is a really good idea, but it is a small step in what really has to happen," Weingarten said. "One of the things we are seeing in America that shows that the American dream is slipping out of reach is that the average age in buying someone's first house is in their 50s, not in their 20s."
The housing project comes in the wake of Austin ISD trustees voting in November to close 10 school buildings. Those properties are currently undergoing a community process to determine future uses that could include more ground leases for affordable housing or other redevelopment options to help bridge an expected $49 million deficit by the end of the school year.
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