In 1808, the area behind the hospital was designated as building land for the settlement of craftsmen, traders, workers, day laborers and other small people, which is bordered by Coulinstrasse and Saalgasse, Nerostrasse, Röderstrasse, Schwalbacher Strasse, Oberer Schulberg and Heidenmauer. From 1809, single-storey, plastered houses were first built in what is now Nerostrasse. In 1820, Röderstrasse and Römerberg, planned as a continuation of Webergasse, were laid out. This was followed in 1829 by Steingasse and Hirschgraben, the course of which was at least partly based on the city fortifications that had been demolished from 1820, and at the beginning of the 1830s by Adlerstrasse and in 1838 by Lehrstrasse. From this point onwards, the new quarter was fully developed and populated.

As early as 1834, the district is said to have been called Katzeloch in the vernacular. The first written record of the term comes from a carnival speech in 1862. It is unclear how this name came about, which lasted for more than a century. The most likely explanation is that the dwellings in the new residential area were so modest that, figuratively speaking, there was only room for one cat. Over time, the residents developed their own "Katzelöcher identity", a sense of togetherness that only came to an end with the start of the redevelopment of the Bergkirchenviertel in the 1970s. There was a lively club life, which culminated in the founding of a "Bürgergemeinde" in the "Weiße Rössel" in 1923. From 1950, one of the highlights of club life was the "Katzelöcher Kerb", which from then on was held regularly in the Lehrstraße area. The "Bürgergemeinde Katzeloch", which had also become politically active in the redevelopment of the Bergkirchen district, existed until 2009. The Katzelöcher Kerb and the former clubhouse in Steingasse, sometimes apostrophized as the "main street of Katzeloch", the "Weiße Rössel", also no longer exist.