Residential developers could soon build towers exceeding 40 stories next to the University of Texas at Austin campus.
The Austin Planning Department has recommended updates to the University Neighborhood Overlay district — covering the West Campus area — that would permit residential towers up to 600 feet, the Austin Business Journal reported.
UT’s enrollment reached a record 54,000 students last year, and the need for more housing has become increasingly urgent.
The overlay would allow 600-foot buildings along Guadalupe Street — “the Drag” — which is taller than the Frost Bank Tower in downtown. Heights of 420 feet would be allowed a few streets west. Father out, near Lamar Boulevard, the maximum would be 90 feet.
That’s an increase over heights from 50 feet and 300 feet, a limit already reached by some multifamily developments.
Modifications to affordability requirements are also part of the proposal. Some units would be set aside for residents earning 50 percent of Austin’s median family income, down from the threshold of 60 percent.
The overlay, adopted in 2004, has encouraged growth, said David Kanne, CEO of student-housing developer LV Collective. But UT is an oversupplied housing market and would be better served by development that attracts long-term residents through retail, office space and amenities like a grocery store, he said.
While there is a strong need for more housing near the university, Austin is already grappling with an oversaturated rental market. About 16,000 residential units were delivered last year, causing rents to drop by roughly 5 percent compared to the previous year.
— Andrew Terrell
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