Jobs and redevelopment take center stage in annual economic development report

The Economic Development Department says it supported more than 27,000 jobs and distributed over $54 million in community investments during fiscal year 2024, according to its recently released annual report. The report outlines the department’s evolving priorities, including the transfer of its cultural programs to a new Office of Arts, Culture, Music, and Entertainment and a sharpened focus on workforce development, business support and place-based redevelopment.

City manager T.C. Broadnax described the department’s 2024 efforts as a foundation for “inclusive economic growth.” Interim EDD director Anthony Segura called the year transformative, citing the launch of the Austin Infrastructure Academy as a model for local economic mobility.

The academy received $5 million in city funding and launched in partnership with Austin Community College, Travis County, and Workforce Solutions Capital Area. It is designed to prepare Austinites for jobs tied to large public infrastructure projects, including Project Connect and the airport terminal expansion. According to the report, 286 residents received job training and 153 secured self-sustaining wages upon completion.

While the academy is framed as a central workforce strategy, its future growth remains uncertain. A recent memo from city staff indicated that delays in federal funding have slowed related workforce resolutions and required postponing council action to extend contracts and secure matching funds. Staff requested additional time into August 2025 to adjust timelines and finalize program delivery. Although the core training contract is moving forward, the memo noted that “the economic uncertainty at the federal level has created significant delays in the release of grant awards,” potentially affecting broader coordination efforts.

The department also reported expanded support for small businesses through updated incentive programs and technical assistance. In 2024, more than 4,500 business owners received training or coaching in areas such as digital marketing, financial literacy, and business planning.

The city also held workshops in early 2025 to introduce revisions to the Business Expansion Program and to roll out the new Place-Based Enhancement Program, which is now accepting applications on a rolling basis.

Both initiatives aim to lower barriers for small and mid-sized firms, particularly in historically underserved corridors like Red River Street and South Congress Avenue. The Place-Based Enhancement Program provides incentives including annual property tax reimbursements to support affordable commercial space, cultural preservation, and community-serving projects to prevent the displacement of legacy businesses, nonprofits, and creative organizations.

Broader real estate and market conditions do present economic challenges in different areas of the city. The Downtown Austin Alliance’s 2025 State of Downtown report showed that office vacancy rates have reached 22 percent—up from 18 percent the prior year—reflecting ongoing uncertainty in the post-pandemic commercial market. While the report noted modest recovery in foot traffic and residential growth, it described a “healthy pause” in commercial leasing activity during major public infrastructure rollout.

The annual report also highlights the progress on redevelopment projects in St. John and Colony Park, both involving city-owned land. Both the new construction at Colony Park and the long-awaited transformation of a former Home Depot store are expected to deliver thousands of new mixed-income housing units, public amenities, and neighborhood-serving commercial space. Each project includes long-term tax increment financing structures and affordability benchmarks.

After more than a decade of aggressive growth, a recent cooling off in the real estate market raises questions about the pace of new housing. According to Redfin data reported by Axios, Austin experienced the steepest year-over-year drop in apartment permitting among major U.S. metros in early 2024, despite recent declines in rent prices. The slowdown has prompted concern that new construction may not keep up with long-term demand.

Looking ahead, the department signals 2024’s initiatives serve as a foundation for deeper systems work. The report frames Austin’s future economic development around inclusive workforce pipelines, stable small business ecosystems, and strategic investment partnerships that reinforce neighborhood identity. With the Office of Arts, Culture, Music, and Entertainment now overseeing cultural programming, EDD plans to further concentrate on job creation, redevelopment, and fiscal strategy.

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