Policy

Big Texas Lot Reform Measure Inches Forward — With A Catch

Texas passed legislation that shrinks lot sizes, spurring hopes for more housing supply and better affordability. But first, it must run the procedural gauntlet through reconciliation.

Policy

Big Texas Lot Reform Measure Inches Forward — With A Catch

Texas passed legislation that shrinks lot sizes, spurring hopes for more housing supply and better affordability. But first, it must run the procedural gauntlet through reconciliation.

May 29th, 2025
Big Texas Lot Reform Measure Inches Forward — With A Catch
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When Texans have the mentality “everything is bigger in Texas,” going big on smaller can be a Lone Star State-sized challenge, especially when it comes to housing.

Despite an 11th-hour hold-up, the Texas House passed a bill Tuesday evening that overrides zoning in the state’s largest cities. This will allow for the reduction of lot sizes and the encouragement of building starter homes.

There's still a hurdle that could derail the goal of reducing lots across the state's largest cities.

It's now in conference to reconcile the differences between the House and Senate versions. If that process progresses as many expect, Texas will join a handful of states that have taken similar steps to preempt local zoning, allow smaller lot sizes to cut into housing shortages, and ignite expanded affordability.

The Texas legislation was one of several bills House lawmakers passed to address housing. They approved a bill that would curtail the influence “not in my backyard” opponents have held over the zoning approval process, but their Senate counterparts need to check off on an amendment the House added.

On Monday, a bill hit the governor’s desk that would allow apartments and mixed-use development “by right” in commercial-zoned areas.

A week ago, the legislation on smaller lot sizes almost fell prey to a show-stopper in the House. Fort Worth State Rep. Ramon Romero Jr., who has a background in city planning, was uneasy about the state dictating land use at the local level and stalled the legislation on a technicality.

Lawmakers resurrected the bill during the Memorial Day weekend, producing amendments to address House opponents' concerns.

Initial legislation had a lot size of 1,400 square feet, a figure widely used among housing advocates nationwide who push for smaller lot sizes, and modeled on what Houston has done with its municipal lot sizes. The law would apply to cities that have at least 150,000 in population.

It was amended to 3,000 sq. ft., still lower than the 5,000 to 7,500 sq. ft. typically required in cities around the state. The requirement would apply to tracts of only five acres of open land.

However, another amendment introduced an amended requirement that could undermine the entire legislation, highlighting the challenge of navigating resistance from those concerned about local governments losing authority.

They also added a spoiler amendment by Rep. Romero that effectively nullifies the bill by making it only apply to a new zoning category that cities must create, meaning they can sidestep the law altogether," Sam Hooper, legislative counsel for the Texas office of the Institute for Justice, an organization that supports individual rights. "There is an effort to get these negative amendments stripped back out as the bill goes to a conference committee to resolve the House and Senate versions."

The Texas legislative session is due to end on Monday, June 2. So, lawmakers are racing to finish their reconciliation efforts in time for a final vote and a final bill to send for the Governor's signature.

Why the Push for Legislation

Texas lawmakers emerged in the 2025 Texas legislative session with bills to tackle the state’s mounting housing affordability crisis. During this session, Lt. Gov. Dan Patrick prioritized housing affordability and championed housing bills.

We need affordable housing for sure,” Patrick told legislators during the session.  

Patrick said in a March statement that Texas, long celebrated for its affordable housing, has seen median home prices skyrocket, up 40% between the years 2019 and 2023.

According to Up for Growth, a national housing policy organization, the state faces a shortage of 306,000 homes, and local regulations are often blamed for stifling new development.

Support and Opposition

Proponents, including many Republican lawmakers and some Democrats, argued that the legislation would empower property owners, increase housing supply, and help more Texans achieve homeownership. They pointed to evidence that smaller lots lead to lower home prices and that Texas’s housing shortage is a key driver of rising costs.

Opponents, however, questioned whether smaller lot sizes would lead to more affordable housing production and voiced concerns about state overreach into local zoning authority.

City officials and neighborhood activists argued that the bill would undermine local planning, potentially create nuisances such as increased traffic or stormwater runoff, and erode the character of established neighborhoods.

The legislation, however, preserves local control over existing neighborhoods and upholds private deed restrictions and homeowners’ association rules.

The Technicality That Stalled SB 15

The real drama unfolded on the legislative floor. As the bill neared a crucial deadline, Romero introduced his procedural challenge, targeting a narrow provision.

Specifically, he objected to language designed to prevent the law from taking effect within a mile of a police training center in Dallas County, arguing that the language was out of bounds for the bill’s subject matter. The House parliamentarian upheld the point of order, briefly killing the bill for that session.

This tactic was not unusual in the Texas Legislature, where technicalities and procedural rules wield enormous power. House rules allow members to challenge bills on technical grounds, and if sustained, these points of order can halt legislation regardless of its popularity or policy merits.

The stall and subsequent amendment that could render the legislation meaningless illustrate the complexity and fragility of legislative housing reform. Even bills with high-profile backing and bipartisan support can be derailed by the intricate web of procedural rules.

The Texas episode highlights the ongoing tension between state authority and local control, especially on issues as contentious as housing and land use, not just in Texas but across the country.

In Arizona, another state dealing with a housing shortage, lawmakers stalled a bill to preempt local zoning to create more starter homes for the second consecutive year.

Like Texas, opposition and support are bipartisan.

I know some of the House Republicans are hiding behind their cities instead of advocating for affordable housing solutions for their constituents,” Arizona State Sen. Shawnna Bolick, the Republican sponsor of the bill, says. “I represent people, not cities.”

ABOUT THE AUTHOR

Richard Lawson

Richard Lawson

Journalist/writer/storyteller

Richard Lawson is an award-winning journalist on housing and adaptive reuse.

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ABOUT THE AUTHOR

Richard Lawson

Richard Lawson

Journalist/writer/storyteller

Richard Lawson is an award-winning journalist on housing and adaptive reuse.

MORE IN Policy

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