© 2019, © 2019 Taylor & Francis Group, LLC. Scholars have recently begun to explore how social and politically liberal gentrifiers make sense of the classed and racial inequalities linked to gentrification. In this article I ask how residents of one new urbanist “bourgeois utopia”—the Mueller Development in Austin, Texas—experience and give meaning to their neighborhood in a context of gentrification. Drawing on 31 in-depth interviews I explain how new urbanism has reimagined and marketed “diversity” and “community” to middle-class and wealthy consumers and provides these to affluent people as neighborhood amenities. I show how residents draw on diversity ideology and multicultural capital to neutralize what they see as their neighborhood...