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aisle passed bills that cut through long-standing barriers like restrictive zoning, excessive parking requirements, and outdated building codes.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Parking mandates, often seen as costly and outdated, were rolled back in Washington, Texas, Montana, and New Hampshire.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.
