Austin, August 22, 2025
News Summary
In 1986, Austin faced significant economic challenges and created a promotional video to attract residents and businesses. The video highlighted the city’s potential despite issues like the mid-1980s oil bust, financial failures, and halted construction. Almost four decades later, Austin has transformed into a booming city, characterized by high real estate prices and increased congestion, while the video serves as a nostalgic reminder of the city’s resilience and growth.
Austin, Texas, was faced with significant economic challenges in 1986, prompting city officials to produce a promotional video aimed at attracting residents and businesses. The video, which can now be found in the Austin History Center film and video collection, served as a nostalgic reflection of the city’s hopes during a tumultuous time.
During this period, the median price of a house in Austin was around $85,000, in stark contrast to today’s soaring real estate market. Cars like the Ford Mustang were priced near $7,500, while the cost to fill a gas tank was about $13. Despite these low prices, the economic climate was anything but stable, as the city grappled with the effects of an economic downturn known as “The Bust.” This downturn was largely attributed to plummeting oil prices that adversely impacted the state’s economy, leading to widespread financial instability.
Many financial institutions in Austin faced insolvency during this period, and construction activities nearly ground to a halt. However, the promotional video carefully omitted any mention of these struggles, focusing instead on the potential opportunities within the growing city. By the early 1990s, Austin’s economic landscape began to improve significantly, paving the way for its transformation into a bustling boomtown.
Fast forward almost four decades since the promotional video was produced, Austin has witnessed remarkable growth. While current residents may find it hard to imagine, many longtime locals retain fond memories of the city from that era, reflecting on a skyline that was considerably different and traffic that was much less congested.
The promotional video serves not only as an artifact from a challenging period but also as a reminder of the resilience and potential that continue to characterize Austin’s spirit. The nostalgia felt by longtime residents highlights the profound changes the city has undergone—transformations that few could have predicted during the struggles of the mid-1980s. As the city thrives today, it remains vital to remember the significance of its past and the efforts made to rejuvenate its image and economy in times of hardship.
Austin’s experience serves as a testament to the cycles of economic growth and decline that cities can endure. The promotional video is a lens through which we can view a crucial moment in Austin’s history—a time when hope emerged amidst adversity.
FAQ Section
What was the purpose of the promotional video created in 1986?
The promotional video aimed to attract residents and businesses to Austin during a time of economic hardship.
How much did housing and car prices cost in 1986 Austin?
In 1986, the median price of a house in Austin was around $85,000, while a new Ford Mustang was priced at about $7,500.
What economic challenges did Austin face in the mid-1980s?
Austin experienced significant economic issues due to “The Bust,” a result of falling oil prices that led to financial institution failures and halted construction activities.
How has Austin changed since the 1986 promotional video?
Since the release of the promotional video, Austin has transformed into a growing boomtown, marked by increased traffic and higher housing prices.
Chart on Key Features
| Feature | 1986 | Present Day |
|---|---|---|
| Median House Price | $85,000 | Varies significantly (often above $500,000) |
| New Ford Mustang Price | $7,500 | Approximately $27,000 |
| Cost to Fill Gas Tank | $13 | Varies (approx. $40 or more) |
| Traffic Conditions | Light | Heavily Congested |
| Economic Issues | Significant | Growing Tech Boom |
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Author: STAFF HERE AUSTIN WRITER
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