Up, up, and away

Tallest high-rise in Texas to tower above Austin in late 2026

Waterline is scheduled to open in late 2026 as the tallest tower in Texas.

Courtesy of WAX

Texas’ tallest building is set to grace the Austin skyline three years from now.

At 74 stories tall and 1,022 feet high, the downtown mixed-use project – carrying the new name of Waterline – is scheduled to open in late 2026. Construction is underway at 98 Red River St., near the Austin Convention Center.

Developers of Waterline released specifics about the project September 6. Word surfaced in June 2020 that the Red River site would be home to the state’s tallest building, but the developers hadn’t confirmed the height.

The height of Waterline will eclipse that of Texas’ current titleholder by 5 feet. Houston’s 75-story JP Morgan Chase Tower stands 1,002 feet tall, making it the state’s tallest high-rise.

Of course, Waterline also will reign as Austin’s tallest building. The 66-story, 875-foot-tall Sixth and Guadalupe tower under construction in downtown Austin will temporarily hold the title of Austin’s tallest building.

In verifying the height of the building, developers Lincoln Property Co. and Kairoi Residential, along with investment partner PSP Investments, also unveiled details of Waterline such as:

700,000 square feet of office space.
352 high-end apartments.
251-room 1 Hotel Austin, the first Texas location for hospitality company SH Hotel Resorts’ sustainability-focused 1 Hotels brand.

“Downtown Austin offers one of the most dynamic markets and skylines in the nation, and we’re excited to help drive its ongoing transformation,” Seth Johnston, senior vice president of Lincoln Property, says in a news release. “Waterline marks a new milestone for downtown not only because of its height but also because of the positive impact this project will have on improving connectivity, enhancing public amenities, and attracting more people to this beautiful area of downtown.”

Developers say Waterline will serve as a new gateway from the Central Business District to the Rainey Street entertainment district. The developers will add two pedestrian bridges over Waller Creek from the west, as well as three pedestrian and bicycle access points to Waterloo Greenway from the east.

The development team is contributing $1 million to the Waterloo Greenway initiative to help pay for improvements to the 1.5-mile trail connecting the University of Texas to Lady Bird Lake.

Designed by renowned architecture firm Kohn Pedersen Fox, Waterline will feature floor-to-ceiling windows, warm textures, and native stone.

“Waterline will offer a truly unique experience with unrivaled views, world-class amenities, and a thoughtful design that connects the building’s interior with the project’s unique natural surroundings throughout the building,” says Michael Lynd Jr., CEO of Kairoi Residential. “We’re thrilled to introduce Austin’s next iconic project.”

The building’s ground floor will offer 24,000 square feet of retail and restaurant space overlooking Waller Creek and the Waterloo Greenway.

1 Hotel Austin will occupy the next 13 floors, with a ballroom and meeting spaces on the 14th floor, and a rooftop pool with food and beverage service on the 16th floor.

The office portion of the tower will occupy 27 stories, with a 14th-floor amenity deck offering 24,000 square feet of landscaped outdoor space along with a bar and lounge, indoor meeting spaces, and a prep kitchen for special events.

The apartments will take up the top 33 stories. Residents will enjoy access to two pools on the 41st floor, along with a lounge, bar, kitchen, and co-working space. A movement studio, workout studio, and steam room will be one floor above, in addition to soaking tubs, hammocks, a barbecue pit, and a dining area.

downtown hotels

local real estate report

Homebuyers can afford to be picky as Austin housing inventory rises

Photo by Avinash Kumar on Unsplash

Housing economist Clare Losey said the most significant factor affecting home sales in Austin is high mortgage rates.

The latest real estate report from Unlock MLS and the Austin Board of Realtors (ABoR) has revealed housing inventory is still on a steady rise in the Austin-Round Rock-San Marcos MSA, creating more choices for potential homebuyers as they navigate a high interest rate market.

Residential home sales dipped by a mere 1.5 percent year-over-year from October 2023, amounting to 2,248 closed sales in the Austin-Round Rock-San Marcos MSA. Median prices have also dropped to $430,000, or 3.2 percent less than this time last year. More than 3,300 new home listings were added on the market — a 7.4 percent increase from 2023 — bringing the total number of active home listings to 11,599.

According to Unlock MLS and ABoR housing economist Clare Losey, Ph.D., October's mortgage rates stood at 6.4 percent and are showing no signs of a significant drop in the near future. Even heading into 2025, Losey says potential homebuyers who are biding their time in the hopes of seeing rates plummet "may be in for a long wait."

"In the meantime, sellers must recognize that bringing buyers to the table requires a more aggressive pricing approach," Losey said. "Even in a more balanced market, buyers with limited purchasing power are struggling to meet current price expectations."

As for the overall health of the Central Texas housing market, 2024 Unlock MLS and ABoR president Kent Redding labeled recent news reports that called Austin "ground zero" for a downturn as an "extreme over-exaggeration."

"Austin led the state and nation in record-breaking home price growth and sales activity during the pandemic," Redding said. "For three years, near-zero housing inventory, numerous offers above list price and a rapid-paced market raised home prices and left little negotiating power for buyers. During this record-setting growth, ABoR and Unlock MLS consistently emphasized the unsustainability of the rapid growth, and now, our market is working to balance those extremes."

Central Texas housing trends in October 2024

In Travis County, 979 homes were sold last month — a slight 2.5 percent increase from last year. Median prices remained flat year-over-year at $510,000. Active home listings continued growing to 5,702 homes, which is 9.4 percent more year-over-year.

In Williamson County, 807 homes were sold in October, with median prices steadily dropping to $420,000. There were 1,028 new home listings on the market, showing a 4.5 percent increase from October 2023, bringing the total number of active home listings to 3,369.

Residential home sales dropped by nearly eight percent in Hays County in October, totaling 315 sales. Median prices also fell 5.5 percent year-over-year to $359,000. Active listings rose 6.6 percent year-over-year to 1,740 homes with the addition of 534 new listings on the market.

Meanwhile, 114 homes were sold in Bastrop County last month, which is 4.4 percent more than this time last year. Median prices dropped by a single percentage point year-over-year to $355,000. There were 654 active listings on the market in October, and 152 new home listings, representing a 1.3 percent slip in new inventory when compared to last year.

Only 33 homes were sold in Caldwell County in October to reflect a near 14 percent decline year-over-year from October 2023. Median prices fell to $262,990, which was a 13.5 percent decrease from last year. There were 136 active homes on the market last month, and 40 new homes added on the market.

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