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cross the United States, 2025 proved to be a watershed year for housing policy. In the first six months of the year, state legislatures approved 124 pro‑housing bills—more than triple the 40 that passed in the same period in 2023—signaling a broad push to increase supply and curb affordability woes.
“Seeing that number triple in just two years is amazing,” said Salim Furth, director of the Urbanity project at the Mercatus Center. “A lot of those bills are highly consequential.”
Furth highlighted five states that rolled out major supply‑boosting packages in 2025: Texas, California, Washington, Montana, and Maine.
**Texas** led the charge with seven landmark laws. The state lowered minimum lot sizes in major cities, permitted residential construction in commercial districts, and eliminated a petition process that often stalls new projects.
**California**, dubbed by Furth as “the original housing crisis state,” made sweeping regulatory changes. A new law now exempts most infill projects—redevelopment of existing urban lots—from the state’s cumbersome environmental review process, a tool frequently misused to block construction. In October, Senate Bill 79 was signed, allowing apartment buildings to be built near transit hubs regardless of local zoning restrictions. Governor Gavin Newsom backed the bill despite opposition from local officials such as Los Angeles Mayor Karen Bass, who feared loss of zoning control. Meanwhile, San Francisco’s Mayor Daniel Lurie secured a “family zoning plan,” a periodic city‑level rezoning required by state law to create new housing, a move praised by Furth as a long‑awaited victory for advocates.
**Washington** and **Montana**—politically divergent states—both tackled parking mandates that hinder development. Washington capped local parking minimums for apartments up to 1,200 sq ft and set limits for larger homes in cities over 30,000 residents. Montana capped parking at one space per unit and became the first state to preempt local height limits, requiring cities over 5,000 people to allow 60‑foot residential buildings in downtown, heavy‑commercial, and industrial zones. Additional Montana reforms included easing accessory dwelling unit approvals, simplifying manufactured‑housing park construction, permitting six‑story buildings with a single staircase, and directing certain legal disputes in favor of property use.
**Maine** also struck down parking minimums, limiting them to one space per unit in designated growth areas. The state removed redundant environmental approvals and capped impact fees, further easing the path to new construction.
These bipartisan efforts underscore a growing recognition that housing supply must be expanded to address affordability. The 2025 legislative wave—spanning diverse political landscapes—demonstrates that reform can gain traction across the spectrum, offering a blueprint for future action.
