While the country has been facing a real estate slowdown amidst poor lending, Austin has remained fairly steady in both residential and commercial spending. Recently, there has been a surge for mixed use properties in Downtown Austin that create more retail space, restaurants, and residential living. There are several under construction now, and the city hopes there will be more similar developments in the future. One way the city is preparing is by removing the recently decommissioned Thomas C. Green Water Tower along Cesar Chavez.

When first built in 1924, the water treatment plant was on the outside of town. As Austin grew, it developed around the plant. The final valve was turned off this past Tuesday. In its place, the city hopes this property will serve as a link between current mixed use developments. Negotiations are still ongoing, and the city believes there will be some difficulty as developers are still feeling the crunch of the national economic status. Austin is expected to continue its overall healthy real estate climate, though there has been a noticeable slowdown here as well. While these mixed use properties have the ability to bring new businesses or expand existing ones, residential occupancy is projected to decline over the next year.

Most economic experts believe the nation will continue the recession until at least 2010. Austin, however, plans to continue new developments that will encourage more people to consider the area. The cost of living and median home prices remain affordable. With one of the lowest unemployment rates in the nation, more people are moving to Austin for the security it offers.