SB 15 Reduces Minimum Lot Sizes to Boost Housing Supply & Lower Costs Statewide
AUSTIN, TEXAS – The Texas Legislature has concurred final passage on Senate Bill 15 (SB 15), marking a major step forward in addressing the state’s growing housing affordability crisis. The bill, authored by Senator Paul Bettencourt (R-Houston), with 10 bipartisan joint authors, and designated a priority bill by Lt. Governor Dan Patrick, is now headed to Governor Greg Abbotts Desk for signature to become law. If the bill is signed, it will become effective September 1, 2025.
“The housing affordability crisis in Texas is real and we’re facing it head-on, removing large lot size requirements has proven to increase home construction and lower prices. This bill simply recognizes the obvious” said Sen. Bettencourt. “With the average age of a first-time homebuyer now at 54 and rising, we must act now to bring homeownership back within reach for Texas families.” He added.
According to the Texas Comptroller’s 2024 Housing Report, the state is currently short over 306,000 homes, and housing prices have risen dramatically, with the median home price increasing 40% from 2019 to 2023. SB 15 takes direct aim at the regulatory barriers that have stifled housing development in Texas’ fastest-growing cities. The bill specifically targets single family “greenfield developments” (unmapped or unplatted) properties in specified zoned areas. SB 15 prevents cities from using restrictive building regulations, such as setbacks, height, and bulk limits to block housing construction.
Key Provisions of SB 15:
- Eliminates city-imposed minimum lot sizes greater than 3,000 sq. ft. for new subdivisions in cities with populations >150,000, counties with 300,000+ residents
- Allows developers to build more affordable homes e. townhomes, starter homes
- Does not impact HOA requirements, deed restrictions, historic preservation laws, sewer and water infrastructure, building codes, or flood regulations
- Targets new subdivisions on at least 5 acres, enabling community-oriented growth
“This bill cuts red tape and lets the market do its job,” said Lt. Gov. Dan Patrick in his press statement on SB 15: “Local regulations and permitting issues are choking our housing supply and making it impossible for our communities to meet current and future demand.”
“We are unblocking government regulations from getting in the way of private sector for housing affordability solutions,” Bettencourt said. “Houston proved it works, when lot size restrictions were relaxed, the market responded. More townhomes went up, prices went down, and real housing demand was met. The results were staggering,” He concluded. If signed by the Governor, SB 15 is set to expand these housing opportunities starting by end of this year.