States Across the U.S. Pass Sweeping Housing Reforms in 2025

As reported by the Pew Charitable Trusts, in 2025, state legislatures across the country took major steps to make housing more available and affordable. From Texas to Washington to Montana, lawmakers on both sides of the aisle passed bills that cut through long-standing barriers like restrictive zoning, excessive parking requirements, and outdated building codes.

The support shown reveals a growing national agreement that overly strict regulations have been holding back the supply of homes, especially smaller, less expensive ones. Leaders from business, housing advocacy groups, property rights organizations, and even environmental groups have united behind “Principles for Enhancing Housing Availability and Affordability,” a shared set of policy goals that stress flexibility and expanded choices.

Zoning and Transit-Focused Reforms

Several states moved to open up commercial zones for housing. Texas now allows apartments in commercial areas and has eased the process for office-to-residential conversions. Arizona requires large cities to make at least 10% of commercial land available for multifamily housing. In New England, states including New Hampshire, Rhode Island, and Maine also passed bills enabling more housing in business districts.

Near transit, Washington state is permitting six-story apartments close to rail stations and four-story buildings near bus rapid transit stops. Hawaii added new incentives for cities to allow more apartments near transit hubs.

Expanding Affordable Homeownership 

Texas passed the “Starter Homes Act,” capping local minimum lot sizes to make it easier to build smaller single-family homes. Rhode Island expanded townhouse construction, and several states approved lot-splitting laws to create more affordable parcels. Manufactured housing also received new support in states like Montana and Kentucky.

Parking and Building Code Changes 

Parking mandates, often seen as costly and outdated, were rolled back in Washington, Texas, Montana, and New Hampshire. Some states also approved “single-stair” reforms for mid-rise apartments, reducing construction costs without compromising safety.

Accessory Units and Streamlined Approvals

Accessory dwelling units (ADUs) (backyard cottages or basement apartments) continued to gain traction. Eighteen states now allow them statewide, with new laws in Arizona, Nevada, New Hampshire, and others. To cut delays, states like Arizona and Rhode Island also created faster permitting systems, including pre-approved building plans.

A Bipartisan Breakthrough

The wave of reforms in 2025 shows how shared priorities can overcome political divisions. By focusing on practical solutions, lawmakers are reshaping the housing landscape, aiming to expand supply, lower costs, and give more families a path to affordable homes.

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Picture of Andy Beth Miller

Andy Beth Miller

Andy Beth Miller is a seasoned journalist, editor, and freelance writer with over 20 years of experience in magazine, newspaper, and editorial writing. She has contributed to a variety of journalistic publications, including DSNEWS, MReport, and FiveStar Institute, as well as luxury magazines such as Pasadena Magazine, Hawaii Home and Remodeling, HI Luxury, Waikiki Magazine, Big Island Traveler, Zicasso, Midweek Magazine, and more. Andy Beth has also written for Dining Out Hawaii and other regional outlets. Throughout her career, she has honed her skills in storytelling, consistently delivering compelling and insightful content across diverse topics. Her work has taken her around the globe, allowing her to cover an array of subjects spanning from procurement and pharmaceuticals to travel and lifestyle. She brings a wealth of experience and a passion for storytelling to every project she undertakes, and considers it a great joy to be able to see the world and write en route.
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