South Congress — How America’s Weirdest Neighborhood Lost Its Cool

By Mo Damtew, Nico Fischer, Dorothy Quanteh, JCamp 2024 — Austin

The street corner of South Congress Avenue and Academy Drive is now one of the city’s busiest and wealthiest street corners, filled with luxury stores like Hérmes.

It hasn’t always been that way.

Like much of South Congress, the intersection was once a residential area. The music scene was more dive bars than highly organized business enterprises. That was the culture that Austinites developed. In the past decade, that has all changed.

Over the past few years, artists, mom-and-pop shops and long-time neighborhood staples have been pushed out as larger retailers expand their footprint in Austin. It’s leading some to question whether the neighborhood is losing its charm.

“I worry about the people who’ve been in South Congress for decades,” said Faith Rose, a three-year employee at the House of Eberstein, a retro jewelry shop.

According to the City of Austin Planning Department, 45% of Austin’s growth last year was due to migration.

Rose expressed a love-hate relationship with the widespread move to Austin. “It’s definitely complicated,” she said. “Yes we need a good economy, however, people can’t afford to live here before our own business people.”

Over the past six months, local favorites like The Good Company and the Sunroom have closed their doors, with both of them noting that rent has increased by more than 500%, according to television station KVUE.

Data from the South Congress Merchants Association revealed that small business owners in the area have had to pay triple the average rent needed to stay afloat since the COVID-19 pandemic.

Major brands like Sézane, Birkenstock and Lucchese have stepped up to fill the vacancies. South Congress is not alone.

Many neighborhoods in major American cities have fallen victim to gentrification. In Williamsburg, New York, barrios have turned into luxury homes while public housing complexes are currently turning into high-rise apartments in the nation’s capital. Arrielle Reyes, a Williamsburg native visiting South Congress, felt the same way.

“Growing up, it was a dope community because we had each other’s back,” Reyes said. “Everybody took care of each other, but once you start seeing new [people] coming in–and the lady from the corner that always looked out for you to make sure you cross the street to the store? She no longer lives there because she got bought out.”

Jermey Allen, an Austinite who has lived here for almost a decade, seems to feel the same way about the neighborhood’s changes. “I’ve noticed that quite a few people around here have bought nice little old houses that are actually their second home that they come to during the winter,” said Allen, who works in film. “They come in a little bit now and then they leave like Parisians do from Paris. You know, they all leave Paris and right because it’s so hot? I noticed that a lot of people here who have the means have a really nice-looking house [they barely use]. It looks like vampires [lived in a nearby house] yesterday, [but they’re] here for now. [And in] two days? ‘We’ll leave.’”

Debra Stone, who sells jewelry outside of a vintage story, has also seen a change in diversity.

“South Austin was where most of the black people lived until it started getting gentrified,” said Stone, who has lived in the area for five years. “The neighborhood I lived in was actually founded by freed slaves, who had [to sell their] property until the 1930s. And then the city turned all their power and their water off to force them to sell.”

Brendan Hodge, the president of the South Congress Merchants Association, is concerned about the loss of local character.

“It’s depressing to see this all happening,” said Hodge, who owns two businesses on S Congress Avenue.

He fears that these recent developments are the start of a bigger trend.

“It’s reshaping places across the country.”