The Austin City Council voted 8-3 Thursday to approve a zoning amendment that will allow buildings up to seven stories along a half-mile stretch of Barbara Jordan Boulevard in the Mueller development, a change supporters say will bring housing density to one of the city's most transit-accessible neighborhoods.

The amendment, which had been under review since October, rezones 14 parcels from general commercial to vertical mixed-use, permitting residential units above ground-floor retail. Council Member Natasha Harper-Madison, whose District 1 includes Mueller, called the vote "a necessary step toward the kind of walkable, complete neighborhood Mueller was always meant to be."

Opponents argued the change would worsen traffic on already-congested corridors. Mueller Neighborhood Association president David Casarez testified that the group's survey of 340 residents found 62 percent supported the change, but with conditions โ€” including commitments to affordable units and traffic mitigation.

"Seven stories changes the character of this neighborhood," said resident Margaret Huang during public comment. "We moved here for the scale. We're not against growth, but we want it done right."

The amendment requires developers to set aside 12 percent of units as income-restricted at 60 percent of median family income, slightly above the city's baseline requirement of 10 percent. It also mandates ground-floor retail along the boulevard frontage.

Catellus Development Group, which manages the remaining Mueller buildout, said in a statement that the rezoning "unlocks the final phase of Mueller's vision as a complete, mixed-income community." Construction on the first project under the new zoning could begin as early as fall 2026.