- Austin’s Planning Department is considering a zoning update that would allow 600-foot residential towers near the University of Texas at Austin.
- The proposed changes aim to address UT’s record-high enrollment of 54K students and the growing demand for student housing.
- The new overlay would increase height limits along Guadalupe Street (“the Drag”) while adjusting affordability requirements for set-aside units.
- Despite the need for more housing, Austin’s rental market is seeing a slowdown. Last year, 16K units were delivered, and rents dropped 5%.
Austin’s skyline could soon see a dramatic shift near the University of Texas at Austin (UT), as the city considers allowing 600-foot residential towers in the West Campus area.
The proposed zoning changes, recommended by the Austin Planning Department, aim to address the city’s growing student housing shortage, according to The Real Deal.
Sky-High Student Housing
Currently, height limits in the University Neighborhood Overlay district range from 50 feet to 300 feet.
If the changes are approved, new developments along Guadalupe Street—also known as “the Drag”—could rise higher than the 515-foot Frost Bank Tower in downtown Austin.
West of the Drag, height limits would be capped at 420 feet, while areas near Lamar Boulevard would have a 90-foot limit.
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Keeping College Affordable
The proposal also includes modifications to affordability requirements. Developers would be required to set aside some units for residents earning 50% of Austin’s median family income, down from the current 60% threshold.
This change is intended to make housing more accessible to lower-income students while maintaining incentives for developers to build in the area.
Meeting Demand—or Adding to Oversupply?
UT’s enrollment hit a record 54K students last year, straining the area’s housing supply. The updated overlay is intended to encourage more high-rise student housing, but it comes at a time when Austin’s rental market is already cooling.
Last year, developers delivered 16K new residential units, leading to a 5% YoY rent decline. Some experts, like David Kanne, CEO of student-housing developer LV Collective, believe Austin’s student housing market is oversaturated.
Kanne suggests future development should focus on mixed-use projects that attract long-term residents by offering retail, office space, and essential amenities like grocery stores.
Immediate Next Steps
The proposal is still under review and could face opposition from stakeholders concerned about Austin’s rental market conditions.
If approved, the zoning changes would transform West Campus into one of the tallest residential districts in the city, bringing both opportunities and challenges for students, developers, and long-term residents alike.
