AUSTIN, Texas — Austin City Council approved a temporary height limit on new downtown towers Oct. 23 to encourage use of the city’s density bonus program and to preserve affordable housing.
New developments in the downtown Central Business District will now be capped at a 350-foot maximum. Developers may build above this height if they participate in the Downtown Density Bonus Program (DBPP), an initiative established a decade ago that allows for taller developments in exchange for high-quality, affordable units.
The height limit is a response to the Sept. 1 implementation of Senate Bill 840, which prohibits Texas cities from enforcing floor-to-area ratios (FAR) for residential and mixed-use projects. The city previously used FAR restrictions to regulate projects and encourage participation in the density bonus program. Now that the city is no longer able to enforce these restrictions, officials sought alternative ways to promote participation in DBPP.
“We need some time to work through [the state law] and get to a good solution that encourages skyscrapers in downtown, but I want to make sure and preserve our affordable housing dollars that generate the great streets requirements,” District 4 Councilmember Chito Vela told KVUE.
Earlier this week, the city’s planning commission approved a recommendation asking city council to reject new height limits, urging the city to instead consider a height limit of 700 feet that is greater aligned with current and future development patterns.
According to a chart presented by Austin Planning Department staff, the median height for new developments has been over 350 every year since 2017. In 2024, the height was just over 500 feet.
“We have to put in a height limit to make the (Downtown Density Bonus Program) continue to work,” said Alan Pani, a principal planner for the city, during an Oct. 14 meeting for the Austin Planning Commission.
However, the cap is not meant to be a long-term solution. The council additionally directed the city manager’s office to provide updated recommendations for maximum heights within the district by May 28.