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Amarillo Council Approves Zoning Reforms to Alter Density Limits and Design Standards
The changes raise allowable units per acre in select zones while adding mandatory review steps for building exteriors and setbacks.
How we reported this
The Amarillo City Council passed Ordinance 2026-47 on July 7 that revises density caps and design review procedures in commercial and mixed-use districts across the city.
City staff prepared the amendments after reviewing 18 months of permit applications that showed repeated requests for taller buildings and smaller lot sizes amid rising demand for apartments near employment centers. The vote passed 6-1 with the new rules scheduled to take effect August 15.
Targeted zones and review process
The ordinance applies first to parcels along Interstate 40 between Georgia Street and Washington Street and to blocks surrounding the Amarillo Civic Center. Developers must now submit facade renderings and material samples to the Amarillo Planning Commission before site-plan approval, a step previously required only for projects exceeding four stories. The Amarillo Economic Development Corporation will track compliance through its quarterly housing report.
Under the updated code, maximum residential density in these corridors rises from 18 units per acre to 28 units per acre when at least 20 percent of units are priced below market rate. Minimum front setbacks increase from 15 feet to 20 feet to preserve sidewalk width, and exterior materials must include at least 60 percent masonry or fiber-cement board on street-facing walls.
Market data and next steps
Median single-family home prices in Amarillo reached $248,000 in the second quarter of 2026 according to Potter County appraisal district figures, up 9 percent from the same period in 2025. Multifamily vacancy rates stand at 4.8 percent, the lowest level recorded since 2019. The planning department estimates the density increase could add roughly 1,200 new units over five years if current application trends continue.
Property owners and builders can review the full text of Ordinance 2026-47 on the city website and schedule pre-application meetings with planning staff beginning July 20. Projects already in the pipeline retain their prior density allowances provided they receive final permits before the August 15 deadline.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.