South Austin ‘ghost neighborhood’ demolished after failed construction

The Brief

• A “ghost neighborhood” in South Austin has been demolished

• Neighbors said the vacant development was attracting homeless people, and they worried it would become dangerous

• The development turned ‘ghost town’ when the developers failed to complete the project

AUSTIN, Texas – A so-called “ghost neighborhood” has been demolished after the developer failed to finish construction.

Neighbors say the vacant Southstone homes were attracting homeless people and it became potentially dangerous.

RELATED: ‘Ghost neighborhood’: Can the City of Austin do anything about unfinished developments?

What they’re saying

“My neighbors have sent emails to city council members asking for some resolution. We knew it was a difficult situation, but it was impacting our property values and our quality of life because just the things that were happening over there,” says neighbor Bryan Poff.

Nearly 45 acres of rubble and ash were left in close to a dozen Southstone homes in South Austin.

“I was literally out of town and when I came home, I saw the excavators tearing up the foundations and the houses were already gone. I was like, wow,” says Poff.

The backstory

Neighbors say the new development turned ‘ghost town’ became a dump site and eye-sore when the developers failed to complete the project.

According to the City of Austin’s Development Services Department, the property had several code violations and there had been no progress on construction since 2022, when the permits expired.

“We love the neighborhood, but I don’t love the homes that were across the street just because they were abandoned. And there was more and more vandalism and broken windows, that type of thing happening. I definitely noticed it, like in the last six months, getting worse. So, I’m happy that they’re gone,” says neighbor Michelle Ellisor.

“I understood what was happening to the developers when interest rates took off. It was too expensive for them to borrow money. Plus, any potential buyers that had went away. So, they were just kind of stuck. They couldn’t develop any further,” says Poff.

What’s next

The development services department says a site plan was approved for a condominium project this month on the property.

“I think it’s fine if they build there as long as it actually gets built and completed and somebody moves in,” says Ellisor.

The next step in the process is getting building permits for the condominium project.

The Source

Information from interviews conducted by FOX 7 Austin’s Tan Radford