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Key State Zoning Reform Bills to Watch in 2025

Writer's picture: Rhett LovemanRhett Loveman


As 2025 begins, key zoning reform legislation at both federal and state levels will focus on promoting higher densities and affordable housing. Federally, the Yes In My Backyard Act is expected to be reintroduced. It requires certain grant recipients to report on land use policies to HUD. At the state level, momentum is building for reforms aimed at boosting homeownership and supporting higher-density housing. Here are the key states and bills to watch in 2025.


Arizona

Reintroduced in 2025 after a 2024 veto, HB 2371, Arizona Starter Home Act, prohibits municipalities from setting minimum lot sizes over 1,500 square feet for developments of 5+ acres in single-family zones, bans restrictions on homebuyers’ design choices, and prevents mandates for specific features like tile roofs or enclosed garages. It also seeks to limit municipal control over single-family construction by banning regulations on building materials, including prefabricated homes, and restricting aesthetic design rules outside of historical districts.


California 

California, a leader in zoning reforms, legalized fourplexes in single-family zones with SB 9, The California H.O.M.E Act in 2022, allowing homeowners to split lots and build up to two homes per lot, including ADUs. In 2025, the legislature aims to expand this by banning local ownership requirements for all ADUs. Additionally, AB-253 seeks to streamline housing permits by allowing licensed private professionals to review plans if local review exceeds 30 days, and requires local departments to respond within 14 days.


Texas 

HB 878 would prevent Texas cities from banning ADUs on single-family or duplex lots and limit local control over building mass, setbacks, and height. It prohibits cities from requiring additional parking or fees for ADUs and caps minimum lot sizes at 2,500 square feet, with a minimum width of 16 feet and depth of 30 feet. Meanwhile, SB 840, seeks to streamline multi-family and mixed-use developments in cities over 60,000 residents within counties of 420,000 or more. It mandates cities allow such developments in commercial zones, restricts parking to one space per unit, and requires administrative permit approvals for compliant projects, aiming to reduce housing barriers in urban areas.


Virginia 

In Virginia’s 2025 Regular Session, HB 1832 focuses on easing regulations for accessory dwelling units (ADUs) by prohibiting localities from requiring dedicated parking and imposing setback requirements, while adding a new section to the Code of Virginia to support ADU development. Meanwhile, HB 2480 seeks to streamline residential development by prohibiting localities from requiring traffic impact studies for rezoning applications involving 50 or fewer residential lots.

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