How Austin HBA Engaged in Transformative City Code Reform

Land Development
Published

In the pursuit of housing affordability, urban planners and policymakers are increasingly turning their attention to innovative solutions that challenge traditional land use policy and zoning norms. The nexus between increased housing density and reducing the upward pressure on housing costs caused by limited supply has led to strategies such as the HOME Initiative in Austin, Texas.

Austin is the fastest-growing metro area in the country and is struggling to keep up with the demand for housing. With a median home price of $639,000 (up from $240,000 just 10 years ago), a population of 1 million people, and years of city council resistance to more flexible zoning regulations, the lack of affordability has dramatically impacted the livability of the Live Music Capital of the World over the last decade.

In response to these challenges, the Austin City Council passed updates, entitled the Home Options for Middle-Income Empowerment (HOME) Initiative, to the city’s Land Development Code in December 2023.

HOME was broken into two parts to be considered in separate council meetings over the course of a few months. Phase 1 allows for three units by-right on any single-family lot, while Phase 2 reduces the minimum lot size and allows for additional flexibility with setbacks, height and other design standards.

Other major changes to the city’s code include:

  • Allowing Up to Three Units: Increasing the number of homes allowed on single-family lots to three units gives home owners the ability to provide on-site housing options to family members and/or a caregiver, or earn additional income.
  • Including Tiny Homes: By making it easier to install a tiny home, the city provides home owners with an accessible and affordable way to add a small house to a property.
  • Creating Preservation and Sustainability Bonuses: The city is saving existing homes that conserve neighborhood character and helping to keep materials out of area landfills by providing incentives.
  • Encouraging the Creation of Smaller Homes: The city regulates of the size and scale of houses while promoting smaller “starter homes” for home buyers.

Throughout the process, the Home Builders Association (HBA) of Greater Austin helped organize a diverse coalition made up of not only housing advocates such as the Austin Board of Realtors and the Real Estate Council of Austin, but also organizations such as AARP, the Austin EMS Association, CapMetro (Austin’s local transit authority), and many others. NAHB’s State and Local Issues Fund was utilized to develop and execute a public awareness digital campaign targeting renters and young voters.

The coalition has reorganized in anticipation of HOME Phase 2, which will reduce lot size and adjust design standards. It is currently under consideration by the city council, with a final vote expected in May.

Recently, Austin has made news headlines for stagnating and even declining rental costs — not solely because of housing construction but it does underscore the impact of initiatives between the city and the HBA of Greater Austin. By leveraging strategic land use policy adjustments, this partnership serves as a blueprint for other rapidly expanding cities across the United States, offering valuable insights into managing growth while addressing housing affordability.

To learn more about land development, visit NAHB’s Land Use 101 toolkit.

To learn more about how zoning reform and other key policies can help solve the housing affordability crisis, visit nahb.org/plan.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Economics

May 23, 2025

Volatile Spring Selling Season Continues

Sales of newly built, single-family homes in April increased 10.9% to a 743,000 seasonally adjusted annual rate from a downwardly revised March number, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in April was up 3.3% compared to a year earlier.

Material Costs

May 22, 2025

NAHB Members Cite Impact of Tariff Uncertainty on Home Building

Tariff uncertainty from the Trump administration continues to impact home builders across the country, as builders prepare for potential price hikes and supply chain issues. NAHB members have been sharing the impact that these tariffs are having with media outlets across the United States.

View all

Latest Economic News

Economics

May 22, 2025

Existing Home Sales Fall in April

Despite the brief retreat in mortgage rates and increased supply, existing home sales dropped to 7-month low in April, according to the National Association of Realtors (NAR). This unexpected decline suggests buyers’ activity continues to be constrained by economic uncertainty and ongoing affordability challenges even with improved market conditions.

Economics

May 22, 2025

Income Growth Helps Mute Existing Affordability Constraints

Despite solid income gains and lower home prices, Americans still continue to face major housing affordability challenges, according to the latest data from the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI).

Economics

May 21, 2025

Gains for Multifamily Missing Middle over Last Year

The missing middle construction sector includes development of medium-density housing, such as townhouses, duplexes and other small multifamily properties.