Mixed-use developments boost urban areas, but affordability remains a challenge

One community faces a critical void in essential services.

AB
Aaron Blake

May 29, 2026 · 3 min read

A diverse community interacting within a modern mixed-use development, highlighting the blend of residential, commercial, and green spaces.

One community faces a critical void in essential services. A feasibility study revealed a nearly 97% gap between local health care demand and available services, according to Community Impact. A nearly 97% gap between local health care demand and available services leaves residents without immediate access to medical support, demanding comprehensive urban solutions.

Large-scale mixed-use projects are frequently proposed as answers to these critical urban needs, including healthcare and housing. However, their multi-year timelines and substantial development costs often delay immediate relief for the populations they are intended to serve.

While these developments offer a vision of integrated urban living, cities must carefully manage expectations and ensure that the benefits reach all segments of the population, not just new residents or businesses.

The Critical Need for Integrated Solutions

The 97% gap in local health care demand versus available services, identified by a feasibility study in one area, confirms a severe deficit in essential community infrastructure. This stark shortage leaves thousands without convenient medical care. Such multifaceted urban challenges demand integrated solutions; traditional single-purpose developments rarely provide the necessary breadth of services, making mixed-use approaches a focal point for planners.

Understanding Development Scale and Costs

Public incentives, such as $6.68 million in SDC exemptions granted for 265 new housing units as of January 15, according to Finance & Commerce, aim to support housing growth. However, these figures are dwarfed by the overall investment required. One mixed-use project, encompassing condos, retail, and apartments, carried an approximate total development cost of $98.9 million, as reported by Tax Credit Advisor. The disparity between public incentives ($6.68 million in SDC exemptions) and overall investment required ($98.9 million for one project) demonstrates that while public funds facilitate development, the scale of mixed-use projects necessitates substantial private capital, reflecting their significant financial commitment and potential for urban transformation.

Anatomy of an Integrated City

Mixed-use developments aim to create self-sustaining micro-cities by integrating diverse services. Bastrop West, for instance, is a proposed development slated to include the city's first full-service hospital, according to City to discuss 400-acre Bastrop West mixed-use development. Bastrop West's proposed inclusion of the city's first full-service hospital within a larger project reveals a core design principle: addressing specific community needs by combining essential public services with other components.

Addressing Social Needs and Affordability

Mixed-use developments often target pressing social and economic needs, including housing affordability and supportive services. The Morrison, a six-story building, features 140 affordable apartments, with 45 studios designated for permanent supportive housing, according to Tax Credit Advisor. The Morrison's 140 affordable apartments, with 45 studios designated for permanent supportive housing, reflect a strategic effort within mixed-use planning to address critical social equity challenges alongside economic development.

However, defining affordability within these projects proves challenging. One fourth of the condominiums, designated as 'workforce' units, were targeted for sale at $350,000 or less to first-time homebuyers earning between 80% and 120% of the area median income, also according to Tax Credit Advisor. The pricing of 'workforce' units at $350,000 or less, while intended to be accessible, often remains out of reach for truly low-income residents without substantial additional subsidies, exposing a potential disconnect between developer targets and community needs.

The Long Road Ahead

Mixed-use solutions are long-term visions, not immediate fixes. The Sendero development, a 75-acre mixed-use project including housing and medical services, broke ground on April 10, 2025, with an estimated completion date stretching into 2030, according to Community Impact. Such multi-year timelines confirm the significant commitment required; their full impact will only materialize years down the line. Communities facing urgent needs, like a 97% healthcare service gap, are asked to wait half a decade or more for solutions. The multi-year timelines, such as Sendero development's estimated completion in 2030, confirm that current mixed-use strategies serve as long-term visions, not immediate fixes.

If current trends persist, the promise of integrated urban living offered by large-scale mixed-use developments will likely continue to outpace the immediate needs of communities, demanding more agile, short-term interventions alongside these ambitious, long-horizon projects.