Austin Suburb Bee Cave Seeks Developer For Workforce Housing

Bee Cave, an affluent suburb just west of Austin, is working to address housing shortages amid worsening affordability issues.

The Bee Cave City Council issued a request for proposals aimed at developing a 23-acre city-owned parcel into a mixed-use development with a focus on workforce housing, the Austin Business Journal reported.

The site, located along the south side of Bee Cave Parkway and west of Skaggs Drive, will not only provide affordable multifamily housing but also include retail spaces, recreational facilities and open green areas. Developers interested in bidding for the project have until April 29 to submit proposals online, which must adhere to requirements for affordability, amenities and green space.

“Our residents know how valuable the workforce is to this community, and we are happy to take this next step in making sure the people who come to work in Bee Cave can also afford to live here,” Bee Cave Mayor Kara King told the outlet. “We have been researching workforce housing and visiting different beautiful developments over the last couple of years.”

The initiative follows years of research and exploration into workforce housing solutions, with the city actively engaging with stakeholders and gathering feedback from local businesses through avenues such as the mayor’s quarterly business roundtable and chamber events.

The move comes as Bee Cave grapples with a median home sales price of $965,000 as of January, making affordability a pressing concern for many residents. The suburb, known for its retail attractions like the Hill Country Galleria, acknowledges the need to address the affordability gap, echoing broader conversations across the metro area.

Austin officials are also taking action to address workforce housing shortages. The city recently agreed to purchase the former Tokyo Electron campus in Southeast Austin, with plans to potentially build workforce housing on the 60-acre tract adjacent to the two office buildings on site.

—Quinn Donoghue