In a decisive 29-2 vote, the Texas Senate has passed Senate Bill 15 (SB 15), a measure aimed at easing the state’s housing affordability crisis by reducing regulatory hurdles for developers.
Authored by Senator Paul Bettencourt (R-Houston) and backed by Lt. Governor Dan Patrick as a priority initiative, the bill now moves to the Texas House of Representatives for consideration.
The legislation seeks to boost housing supply and bring down costs in a state where demand continues to outpace availability.
Senator Bettencourt, speaking after the vote, emphasized the urgency of the issue.
“The housing affordability crisis in Texas is real with a 306,000 shortfall—and we’re facing it head-on,” he said. “With the average age of a first-time homebuyer now at 54 and rising, we must act to bring the dream of homeownership back within reach for Texas families.”
His words reflect a growing concern echoed in the Texas Comptroller’s 2024 Housing Report, which highlights a shortage of over 306,000 homes and a 40% spike in median home prices between 2019 and 2023.
SB 15 targets one of the key barriers to new housing: local regulations that impose minimum lot sizes. The bill prohibits cities in counties with populations exceeding 300,000 from enforcing lot size requirements greater than 1,400 square feet for new subdivisions in municipalities with over 150,000 residents.
This change is designed to give developers greater flexibility to build smaller, more affordable homes like townhomes and starter homes—options that have become scarce amid rising costs.
Importantly, the legislation balances growth with preservation. Existing neighborhoods, homeowners’ association rules, and deed restrictions remain untouched, ensuring that current communities aren’t disrupted.
The bill applies specifically to new subdivisions on parcels of at least five acres, encouraging thoughtful development while safeguarding water supply considerations.
Lt. Governor Dan Patrick, a vocal supporter of the measure, praised its approach to cutting through bureaucratic obstacles.
“Local regulations and permitting issues are choking our housing supply and making it impossible for our communities to meet current and future demand,” he said in a statement. “This bill cuts red tape and lets the market do its job.”
The bipartisan support for SB 15 was evident in the Senate, where it garnered 10 joint authors from across party lines.
Bettencourt credited this coalition for its success, noting, “We are unblocking government regulations from getting in the way of private sector housing affordability solutions.” He sees the bill as a cornerstone of broader efforts to address Texas’ housing challenges.
The timing couldn’t be more critical. With the state’s population booming—particularly in urban centers like Houston, Austin, and Dallas—housing construction has struggled to keep pace.
The Texas A&M Real Estate Research Center reported that single-family home permits have lagged behind population growth, exacerbating the shortage.
By loosening lot size restrictions, SB 15 aims to unlock new opportunities for builders to meet this demand with cost-effective options.
As the bill heads to the House, where a companion measure awaits, housing affordability remains a top priority for Texas lawmakers. Bettencourt, who chairs the Senate Local Government Committee, has signaled that more proposals are in the pipeline.
These include efforts to expand accessory dwelling units (ADUs), streamline permitting processes, and repurpose vacant commercial spaces for residential use. Together, these initiatives could form a comprehensive strategy to ease the housing crunch.
For now, SB 15 stands as a bold step forward—one that could reshape how Texas grows. If it clears the House and lands on Governor Greg Abbott’s desk, it may well pave the way for a new wave of affordable homes, offering relief to families priced out of the market.
As Bettencourt put it, “This is about making sure Texas remains a place where people can build a life, not just a house.”