Housing costs are sky high, and especially so in Texas where it has been reported that the state simply doesn’t have enough homes priced within reach of the average family. But a new series of legislative reforms will help turn the tide by removing burdensome regulations, unlocking housing supply, and making it easier to build, buy, and afford a home. The laws, which were signed by Governor Greg Abbott, championed by key lawmakers, and backed by the Goldwater Institute, mark a sweeping win for affordable housing and property rights across the state.
The Goldwater Institute joined forces with a dedicated coalition of advocates, organized by Texans for Reasonable Solutions, to support these freedom-based reforms to the housing market. Texas leaders delivered, enacting key housing bills—SB 840, SB 2477, HB 24, and SB 15.
Expanding Housing Opportunities with SB 840
Outdated rules and bureaucratic hurdles have hindered homebuilding, leading to artificial scarcity, inflated prices, and limited choices. SB 840 dismantles these barriers by requiring municipalities to allow “missing middle” housing—townhomes, duplexes, and smaller single-family homes—in areas already zoned for commercial or mixed-use development. SB 840 eliminates obstacles like arbitrary density limits, height caps, and excessive parking mandates that previously blocked these projects from moving forward. With the new law, vacant office buildings will soon be transformed into much-needed residential units, breathing new life into urban centers and creating more housing without contributing to outward sprawl.
Office-to-Residential Conversions with SB 2477
SB 2477 also removes regulatory roadblocks that have discouraged the conversion of empty office buildings into desperately needed housing. Office vacancies have soared across the country since the pandemic, and the urban centers of Texas haven’t been immune. In cities like Dallas, Houston, and Austin, office building vacancy rates have neared 25 percent. At the same time, Texans face escalating housing costs and limited options. Historically, converting these underutilized office spaces into housing has been slowed by a costly maze of zoning restrictions and legal reviews.
The law streamlines the process by banning unnecessary mandates like traffic studies, additional parking, and zoning changes for qualifying buildings. If a property meets minimum standards, cities must grant approval without further interference.
Restoring Property Rights and Streamlining Development with HB 24
HB 24 eliminates a loophole that allowed a handful of neighbors to block new housing projects through protest petitions, delaying development and raising costs for everyone. For years, these protest powers gave disproportionate control to a vocal minority, sidelining broader community needs. Modernizing this process returns fairness and predictability to construction projects and allows landowners to use their property to meet growing housing demand.
Increasing Housing Options through Lot Size Reform with SB 15
SB 15 cuts through red tape, paving the way for the construction of smaller, more efficient, and consequently more affordable homes. This reform directly addresses these minimum lot size requirements, creating opportunities for more entry-level options and diverse housing types that fit different budgets and lifestyles across Texas. It enables the market to respond to the increasing demand for smaller, lower-maintenance homes.
A Brighter Future for Texas Housing
Taken together, these reforms can be summed up by one idea: freedom builds faster. Studies consistently show that increasing housing supply can lead to lower surrounding home and rent prices, offering tangible relief for families struggling to make ends meet. Texans are clearly ready for these reforms, with widespread support for allowing more housing near job centers and transit, and for converting existing buildings into homes.
These legislative victories are a testament to what is possible when we work together. We extend our deepest gratitude to Governor Greg Abbott, the legislative leadership who championed these bills, and our dedicated partners in the Texans for Reasonable Solutions coalition. Their vision and commitment have paved the way for ensuring that the dream of a home remains attainable for every Texan.
Jen Springman is the Coalitions Manager at the Goldwater Institute.
