1. NIMBYism and especially strong neighborhood groups in Austin compared to other Texan cities.
2. Hills in the west make for especially difficult freeway construction, and lower population/traffic density, so it's generally not worth building non-direct routings on that side of town.
3. Austin's urban buildup is significantly less round than the other big-3 Texan cities. We're very north-south stretched. It makes a loop less useful for through traffic and less useful for locals.
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It can be done, if we have the will.
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