What's next for Austin's skyline
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A view of downtown in October 2025. Photo: Jakub Porzycki/NurPhoto via Getty Images
Downtown Austin is entering a new phase after years of nonstop construction — and experts say it's a healthy shift, not a warning sign.
Why it matters: Expect far fewer cranes in the sky compared to the years of a pandemic-era construction boom, when developers worked to build towers as fast as possible.
By the numbers: There are seven projects under construction, with five expected to be completed this year, according to Luke Goebel, Downtown Austin Alliance's economic development manager.
- By comparison, 11 projects were completed in 2023.
Zoom in: The most visible addition to Austin's skyline is the Waterline, which has topped out as the tallest building in Texas and is expected to open later this year.
- No new downtown construction is slated to break ground in 2026, giving the market time to absorb existing office space and allowing multi-family operators to start increasing occupancy rates, Goebel tells Axios.
What they're saying: Goebel attributes the shift to a number of factors. Population growth has slowed, interest rates have tightened and development nationwide is cooling. But he's still bullish on Austin's market.
- "Austin still has very strong demand and very high appeal," Goebel says. "We're still seeing national and international investors wanting to be here and wanting to scoop up projects."
Between the lines: Foot traffic has rebounded downtown, with 2025 visitor counts nearly matching 2019 numbers, per the Downtown Austin Alliance's latest quarterly report released last month.
What's next: Austin will see significant changes to its skyline when several big projects move forward in the coming years.
- There are 21 projects planned or proposed in downtown, according to Downtown Austin Alliance, including a redevelopment of YMCA Town Lake, which could add three residential towers.
- Plus, the highly anticipated redevelopment of the South Central Waterfront — which includes the site of the former Austin American-Statesman building — will drastically transform downtown with a mix of high rises, park areas and a boardwalk trail extension.
Reality check: One Lady Bird Lake, a residential tower in the waterfront district, began construction this year. However, it could take years before construction begins on many of the other proposed projects in the district.
- Construction at the site of the Statesman has stalled after years of lawsuit-related delays.
The bottom line: "We're seeing people sitting on land and they're just waiting for the market conditions to improve because they still believe in downtown," Goebel says.
- "It's just a period of market correction, and I do believe coming out of 2026, we're really going to start to see those market conditions become favorable again to break ground on new projects."