David Steinwedell Works To Maintain Housing Affordability In Austin

It’s a story as old as cities themselves. As demand for housing skyrockets in the most popular metros, supply dwindles and home prices go through the roof. When this happened in Austin, savvy business leaders bristled, knowing the cost of housing rapidly became the weak link in their recruitment packages.

Enter David Steinwedell, a man on a mission to plump up Austin’s stock of that ever-important commodity: missing middle housing. After serving as executive director of the Urban Land Institute, Steinwedell moved into a position as managing partner at Stoneforge Advisors before taking the reins at Affordable Central Texas, a nonprofit sponsor and investment manager of the Austin Housing Conservancy Fund.

Launched eight years ago with a boost from a handful of high-net-worth individuals, ACT has expanded to include investors across the spectrum. The model is unique. Steinwedell explains: “The open-ended structure allows us to raise capital to acquire more properties continually — and most importantly — to hold properties for decades, therefore preserving affordability for very long periods.”

Today, the fund stands at an impressive $400 million in gross value across 14 properties, totaling 2,150 units.

Frances Ferguson is executive director of the Mueller Foundation and serves on the board at ACT. She and Steinwedell met when he was at ULI, and they quickly bonded over their shared interest in affordable housing. She knew immediately he’d be the perfect person to oversee the Austin Housing Conservancy Fund.

“Here’s the thing that I was so excited about with David,” Ferguson said. “He's got all of this solid, private sector experience in residential real estate, so he really understands the workings, needs, and requirements of private capital (and) private debt.”

Austin Community Foundation CEO Mike Nellis agreed. Steinwedell not only has the right knowledge base but he speaks with authority and conviction, Nellis said.

“David can take a complicated-sounding idea and make it seem simple,” Nellis said, “and very investable. He can make it easy to understand, which is important because what he is doing is new.”

Nellis’ admiration doesn’t end there. “??David has a real spirit of generosity. He doesn't care who gets credit for what, he just wants to see affordability improve for Austinites.”

As anyone who’s worked in commercial real estate in Austin knows, building the next great American city is no walk in the park. With all of its inherent challenges, one might wonder if the future of affordable housing in Austin is merely a pipe dream.

“When you add the resistance to increasing housing density along transit corridors, supporting (accessory dwelling units) and other easy-to-implement programs,” Steinwedell said, “there’s a temptation to question. However, with the growth in Austin comes opportunity, including the opportunity to evolve how we help those in need so they can remain in this city we all love. I refuse to believe that is a pipe dream."

This article originally appeared in the Austin Business Journal.