Dudley Council's planning committee gave the green light for the conversion of New Bridge House, in Bayer Street.
Residents had said the scheme for 23 one-bedroom flats and nine two-bedroomed apartments with 40 off-street parking bays would be an eyesore.
But Councillor Susan Ridney told the development this week that the main objection to the application was parking.
She said: “Bayer Street is quite a narrow road as such and has heavy traffic and is used by heavy lorries.
“Any parking on that road would be a problem and we do have a parking problem in Coseley.”
She added: “I am in favour of more affordable housing but this is not the only development in Coseley and we don’t have the infrastructure to cope.
“We need more doctors’ surgeries, we need a secondary school and we need more leisure facilities and we don’t have these.”
In response, an agent for the developers said the property had been empty for over five years and had broken into and attracted anti-social behaviour.
He added: “This scheme, while small in numbers, will allow young families and first time buyers to get on the housing ladder.”
The application was the second proposed development of the site after a plan for a hostel for 65 people was rejected in August this year.
That proposal was rejected because it would lead to nearby residents having a greater fear of crime, while the scale and design was considered to be poor and the number parking spaces was inadequate.
But highways officers told the committee the proposed parking provision for the new application met the council’s requirements and that off-road parking shouldn’t be a problem.
Members of the committee backed planning officers’ recommendations and passed the application.