Although Austin's housing market has not been terribly troubled by the economic downturn when compared to other cities in the nation, the city has felt a squeeze on budgets due to a lack of new residential and commercial construction. Less construction means less permits, which means less money for the city. Those fees may not be the bread and butter of the city's cash-flow, but when combined with a slump in sales tax revenue from the slowdown in retail sales, the impact on Austin's budget is noticeable. The city will have to cut down to make up for the money missed from development. Overall, Austin is still strong and coping well despite economy troubles nationwide.

Blog inspired by article written by ShondaNovak featured in The Austin American Statesman and can be seen here: http://www.statesman.com/business/real-estate/new-home-slowdown-hits-city-budgets-1045635.html