In a reflection of Austin’s rapid growth, South Lamar Boulevard, known for its vibrant coffee shops, fitness studios, and taco joints, is witnessing a wave of development that includes new apartment communities and commercial spaces.
The recently completed Bouldin, an $80 million apartment community at 1401 S. Lamar, is among the latest additions. Located just steps from Bouldin Creek and Zilker Park, it encompasses 570,000 square feet of mixed-use space and is now welcoming its first tenants.
Such projects have not emerged randomly. A year ago, the Austin City Council introduced a new combined zoning designation called Density Bonus 90. This initiative was developed to foster the creation of more affordable housing and businesses serving the local community along prominent routes like South Lamar.
Under the new zoning rules, residential developments on select commercially zoned sites can reach heights of up to 90 feet. In return for these increased height allowances, developers are required to set aside a portion of their units as income-restricted housing. Specifically, rental projects must designate 12% for families earning at or below 60% of the area’s median income, or 10% for those at or below 50% of median income, for a period of 40 years.
For-sale developments are also impacted by these guidelines, requiring 12% of units to be reserved for buyers with incomes at or below 80% of the median for a duration of 99 years, with penalties for non-compliance.
This is not the first time the city has implemented mixed-use zoning. A program promoting vertical mixed-use zoning has been in place since 2006, which encourages higher density developments featuring ground-floor retail spaces beneath residential units, especially in high-transit corridors like Lamar Boulevard.
Other areas with similar mixed-use zoning include Burnet Road, East Seventh Street, and South Congress Avenue. In 2022, the city took steps to advance this program further by introducing a second phase that permitted a height increase of 30 feet. However, this initiative faced a setback when a judge struck it down in 2023, citing a lack of proper public notice prior to the zoning changes.
In response, the city developed Density Bonus 90, which re-established options for taller mixed-use housing while clarifying requirements for affordability. Despite already facing challenges, Mayor Kirk Watson has acknowledged the program as an “unhappy experience,” and has proposed amendments aimed at creating a more structured approach to the density bonus program.
In a message board update in May, Watson stated, “The main thrust of the resolution is the creation of a hierarchy of density bonus paper districts that include both lower and higher heights than DB90,” emphasizing the necessity of providing varied options for better potential outcomes.
Additionally, he noted the need to revisit how these programs operate, considering factors like affordability, allowable heights, redevelopment standards, and commercial regulations.
In June, the City Council passed several amendments to the Density Bonus 90 program. Despite facing various obstacles, development activity continues to accelerate along South Lamar.
Work is progressing on a five-story mixed-use project at 2323 S. Lamar, developed by Pearlstone Partners. This project is set to add 179 apartments along with retail and dining space at ground level and boasts amenities such as a central courtyard with an elevated swimming pool, a fitness center, co-working areas, and a rooftop lounge. Completion is projected for the end of 2026, as per filings with the Texas Department of Licensing and Regulation.
Further up the road, The Bouldin opened alongside a 140,000-square-foot four-story office space at 1301 S. Lamar, also developed by Seamless Capital. These developments are expected to enhance daytime traffic for local eateries and retail stores.
Seamless Capital has ambitious plans for another mixed-use project, targeting the 2700 and 2800 blocks of South Lamar, a site where a Goodwill store was previously located. The area has been slated for Density Bonus 90 zoning as of August, allowing for its redevelopment under the updated guidelines.
This proposed $137 million development will feature at least one building of 468,000 square feet that will include 399 apartment units, with construction anticipated to commence in a few weeks and project completion expected by February 2029.
Other developments aimed at improving housing affordability are also making strides on South Lamar, including Bouldin Village at 2001 S. Lamar, which features 375 multifamily units and falls within a density bonus zone.
The ongoing developments highlight both the urgency for addressing housing needs in Austin and the city’s commitment to balancing growth with affordability.
image source from：statesman
