Competition could be causing the spike in rent for business owners on South Congress Ave

Austin, Texas — If you’ve lived in Austin for two years, or 20, you know that South Congress Avenue is one of the hottest spots in town.

Some call it the heart of Austin– from the scenery, to the shops, and the great food; it’s a staple of the Austin culture.

But for some business owners, it comes with a price that some can no longer afford.

“We’ve been here a while, we know it’s a special part of the city,” said Paperwork owner, Lizelle Villapando.

Paperwork is a small business on South Congress that set up shop 20 years ago.

She added, “It’s gonna be pricey if it’s special.”

According to the South Congress Merchants Association, rent for business owners on South Congress has increased about 300% since the COVID-19 pandemic, leaving some store owners with the decision to vacate, or shutdown altogether.

The South Congress Business District reports four business leaving the avenue, with three more adding to that list this week.

Villapando said competition could be a contributing factor to the spike in rent.

“More recently, there’s been a lot of interest from bigger companies,” she said, “When there’s corporate interest, they have more in their wallet to offer so of course that’s enticing to landlords.”

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Something that Austenite have noticed on the Avenue.

Greg Behl said some of his favorite Austin staples have been replaced.

“It’s gotten replaced with that corporate stuff, they might have a nice fun label on the top but then underneath it’s owned by some LLC.”

Behl said he’d rather support local, small business, but he’s afraid of the domino effect that could come out of rent spikes.

“Rent goes up, and the price goes up for us– so now I gotta pay more when I go shopping, and maybe won’t come as frequently.”

And, there’s no telling what the future holds.

“The soul of the city might be lost in a few years,” added Behl.

So, how can you help?

Villapando said, when you shop local, you help the city and the district thrive.

“It’s all the more reason to support those small businesses; most of the makers [at Paperwork] are Austin-based, so it stays in the local economy, that’s something to be mindful of.”