State Vs. Suburbs: The Stand-Off Over Texas Housing Density
Texas lawmakers hailed the new housing reforms they'd legislated this year, declaring they would allow for more density and increase housing affordability.
As new realities set in, they may now have to take a course similar to that of Florida Gov. Ron DeSantis, after his state passed its own array of zoning and deregulatory measures aimed at spurring new housing production — repeatedly changing the law to force local governments to comply.
As Texas cities move to evade and elude the state's new housing laws, they may be sending a message that they don't want to "Florida" their Lone Star State.
Several of the state's largest and most affluent suburbs are now exploiting loopholes in the new laws, enacting creative local ordinances that threaten to undermine the state's affordability goals.
The Texas Affiliation of Affordable Housing Providers has dubbed the fight the "Texas Housing Tussle."
The Backstory
To address a statewide housing shortage estimated at 320,000 homes, Texas lawmakers passed a series of landmark bills this year aimed at slashing local regulations to spur development.
This session, Texas did more than any state in America to make housing more affordable," Gov. Greg Abbott said at the signing.
Abbott, however, only needed to look at what happened in Florida to see what's in store for his state.
Florida's Live Local Act, a state law designed to spur affordable housing by preempting local zoning, has been met with widespread resistance from city governments, which have used loopholes and procedural delay tactics to obstruct new projects – often pushing them past financial expiration dates.
In response, state lawmakers have been forced repeatedly to amend the act, with the most recent changes strengthening the state's authority and adding legal penalties, such as awarding attorney fees, to compel municipal compliance.
Texas may need to take similar steps in the next legislative session, which isn't until 2027, as state lawmakers only meet in odd-numbered years. However, Abbott has shown his willingness to call special sessions.
Speeding up Texas Homebuilding
Headlined by Senate Bill 840, the legislation was designed to unlock new housing opportunities by streamlining construction and making it more affordable. The law allows multifamily and mixed-use housing to be built "by right" in areas within the state's 19 largest cities that were previously zoned exclusively for commercial, office, retail, or warehouse use.
This allows developers to bypass the often lengthy, expensive, and uncertain public rezoning process, which frequently faces opposition from nearby residents. The bill was paired with other significant reforms, including SB 15, which limits cities' ability to mandate large lot sizes, and HB 24, which reformed the "tyrant's veto" process that allowed a small number of property owners to block zoning changes.
The Pushback
Despite the state's clear intent, the new laws left cities with some control over design, size, and building standards. Several suburban towns in the Dallas-Fort Worth metroplex—where devotion to single-family neighborhoods runs deep—have used this opening to enact a wave of new rules just before SB 840 took effect on Sept. 1, 2025.
Critics argue these new local ordinances are designed to make the projects targeted by the state law financially infeasible.
Irving
The city council enacted rules requiring any new apartment complex built under SB 840 to be at least eight stories tall. Before the state law, the typical limit was three stories. These new projects must also include a host of amenities such as a swimming pool, a dog park, a gym, and remote workspaces.
Arlington
In a similar move, Arlington now requires apartment buildings along major commercial corridors to be at least six stories high. The city also increased the number of needed residential amenities and mandated that 15% of parking spots include electric vehicle charging stations.
Plano
The city now mandates minimum building heights of 45 feet in many commercial areas and 75 feet in office areas for new residential projects. Mayor John Muns defended the steps taken during an August hearing on the city's changes, saying the new state laws took "complete authority away from what our community would like to see."
Frisco
This city took the most novel approach by changing its zoning code to allow "heavy industrial" uses in the same commercial and retail zones targeted by SB 840. Because the state law includes an exemption for areas that permit heavy industry, Frisco's move effectively attempts to sidestep the law altogether.
A Standoff with Statewide Implications
This local pushback has created a tense standoff. State Sen. Paul Bettencourt, a Houston Republican who authored many of the housing bills, told the Texas Tribune that the cities are leading a resistance.
But they're leading the resistance to good ideas like housing affordability," Bettencourt told the Texas Tribune.
Housing advocacy group Texans for Reasonable Solutions, which supported the housing bills, is preparing to sue the cities.
The Dallas Morning News editorial board stepped into the fray, opining that the local zoning actions were unhelpful in creating more affordable options.
Renters don't need a yoga room; they need more housing options at reasonable prices," the board wrote.
Developers are now in a holding pattern, waiting to see how the conflict between state authority and local control plays out.
While major urban centers like Dallas and Fort Worth appear to be embracing the new law, the resistance from their suburbs could limit the overall impact on regional housing costs.
The fight has revealed a deep-seated tension over the future of Texas's urban landscape. The state legislature attempted a decisive top-down reform. Still, it has been met with sophisticated local maneuvering, leaving the path to housing affordability caught in a new web of regulations.
Unless Abbott calls for a special session earlier than 2027, the courts may become the decision-makers.