Indie-folk emerged during the early 21st century, when songwriters from the indie rock community began taking their cues from folk music. Acoustic artists like Elliott Smith and Will Oldham (in his Palace Brothers guise) helped lay the genre's brickwork during the '90s, but it wasn't until the following decade that indie folk truly took hold, with labels such as Saddle Creek, Barsuk, Ramseur, and Sub Pop devoting ample support to the genre. As the 2000s progressed and more indie-folk artists appeared, the genre grew to encompass a wide range of music, from the neo-Celtic folk of the Decemberists to the Appalachian harmonies of Fleet Foxes. Other groups, including genre kingpin Iron & Wine, embraced such variety in their own music, jumping from lo-fi acoustic ballads to lush electric rockers without ever truly exiting the indie-folk camp. Despite their ties to the folk community, however, most of these bands frequented traditional rock venues instead of coffeehouses, a characteristic that distinguished them from contemporary folk groups.
Too much competition
It's like Nashville here....every other person is a "singer/songwriter" or is in a band. So you'll be one little fish in very big sea....and several of the smaller venues/bars have closed or relocated to another Texas town. So there are fewer places for all y'all to be heard now. Also, yes, the scene is huge and Austinites love, love, love their live music (Austin is considered to be the "live music capitol of the world"), but the scene is also very narrow musically. It's all about indie/alt/acoustic or just straight-on rock sort of genres. Very little jazz or blues or electronica or rap/hip hop or folk or metal, etc