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

Workforce Development | Student Chapters

Oct 13, 2025

From Computers to Construction: How NAHB Inspired a Career Change

Drew Williams had strong success in computer technology, even earning a patent for a motion detection and sound recognition dash camera, but felt his original passion start to slip. That's when he made a career change that brought back old memories.

Advocacy

Oct 10, 2025

Senate Passes Major Housing Package

The Senate passed NAHB-supported housing legislation that offers meaningful solutions to increase the nation’s housing supply by addressing key concerns around zoning and land-use policies, the aging housing stock, rural housing, and multifamily housing.

View all

Latest Economic News

Economics

Oct 10, 2025

Vinyl Surpasses Stucco as Most Used Principal Exterior Wall Material

In 2024, vinyl siding was the most used principal exterior wall material for homes started. It holds just over a quarter share of homes, slightly surpassing stucco for the first time since 2018.

Economics

Oct 09, 2025

Remodeling Market Sentiment Improves in Third Quarter

In the third quarter of 2025, the NAHB/Westlake Royal Remodeling Market Index (RMI) posted a reading of 60, up one point compared to the previous quarter. With the reading of 60, the RMI remains solidly in positive territory above 50, but lower than it had been at any time from 2021 through 2024.

Economics

Oct 08, 2025

Refinancing Activity Surges in September

Refinancing activity surged in September, marking the largest monthly increase since the COVID-era of ultra-low interest rates. This increase followed mortgage rates dropping below 6.5% for the first time since October 2024 in anticipation of rate cuts that ultimately materialized. ­­