Merced approves new housing development. Here’s where

Merced City Council recently approved a zoning change that will pave the way for 570 homes in southeast Merced.

The new development will be at the southwest corner of East Gerard Avenue and Campus Parkway and is split by Campus Parkway. The north side will feature larger lots zoned low-medium-density residential and a primary park area. The south side, zoned high-medium density residential, has smaller lots that city staff say is “affordable by design.”

“Southeast Merced is growing and this is exciting times for not only southeast Merced, but the growth of the City of Merced,” Council member Darin DuPont said. “Campus Parkway is showing what we all thought Campus Parkway would do, and that is to create opportunity.”

About nine acres of the rezoned property will remain available for commercial use. City council member Sarah Boyle linked the new development to future commercial interest in Merced.

“A lot of retailers want to see more homes, and so approving this project would allow potentially more retailers to come to Merced, which is something so many of our residents want to see, and this is the perfect area for it,” Boyle said.

“I look at this as a full picture moment for us,” she said.

The zoning change and new development was approved by a 5-1 vote after Council member Shane Smith recused himself. The lone dissenting vote came from Council member Fue Xiong, who voiced concerns about affordability.

“Affordable by design isn’t affordable units,” Xiong said. “They’re not deed restricted. You’re essentially saying ‘Hey, you live in a smaller place, yeah you pay less,” but that’s not the same as having affordable units.”

This story was originally published October 21, 2025 at 2:57 PM.