Barrio Heights: Overlooked Amarillo Suburb on the Cusp of Rezoning

City staff filed the rezoning packet for Barrio Heights on July 8, covering 47 blocks bounded by Northeast 15th Avenue, Martin Road, Southeast 3rd Avenue and the BNSF rail line.

The filing arrives as Amarillo adds 1,800 new residents a year and the Amarillo Economic Development Corporation reports industrial vacancy below 4 percent along the east-side corridors. Property owners in the neighborhood say the change would allow ground-floor retail and small apartments above existing homes, a shift that mirrors what happened along Polk Street in the 2010s but has not yet reached this pocket east of downtown.

Why the timing lines up now

Three factors converged this spring. The Texas Department of Transportation completed widening of Interstate 40 between Ross Street and Lakeside Drive, cutting commute time from Barrio Heights to the downtown medical district by nine minutes. At the same time the Amarillo Independent School District opened a new pre-K center at the old Humphrey’s Highland Elementary site, drawing families priced out of Wolflin and The Colonies. Finally, the city’s 2025 comprehensive plan update flagged Barrio Heights as one of three zones still locked in 1970s-era single-family zoning despite steady demand for walkable housing.

Local detail shows the shift already visible on the ground. The former Santa Fe rail depot at Northeast 10th and Grant has been converted into 22 live-work lofts leased through the Amarillo Area Foundation’s workforce housing program. Two blocks south, the old Panhandle Lumber yard on Southeast 5th now hosts a weekly farmers market organized by the Amarillo Farm and Ranch Show. Both projects sit inside the proposed rezoning boundary and would become conforming uses once the ordinance passes.

Numbers that developers are watching

Current median sale price in Barrio Heights stands at $168,000 for 1,150-square-foot homes, according to Potter County appraisal records through June. That figure sits 38 percent below the Amarillo metro median of $272,000. Builders who have closed on similar parcels in the adjacent San Jacinto neighborhood report construction costs of $185 per square foot for three-story mixed-use buildings, with rents averaging $1.85 per square foot on the retail level. A public hearing before the Amarillo Planning and Zoning Commission is set for July 22 at City Hall, with a full council vote expected in September.

Owners who want to test the market before the vote can list properties now under the existing code or apply for a planned-unit-development overlay that would lock in the new allowances if the rezoning passes. Several title companies on Taylor Street already offer pre-approval packets that include the draft ordinance language.

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.