While lawmakers in a handful of states continue their work, much of the nation has work as its state capitols wrap up for the year.

Below are highlights and trends for 2026.

New States Find First-Year Successes

In their first years pushing major changes, Idaho and Indiana passed comprehensive reforms.

HB 1001 in Indiana was written to increase housing production by reducing regulatory barriers, streamlining approvals, and lowering development costs. The law requires local governments to approve projects that comply with the rules in place when an application is submitted, limits permit fee increases, and imposes consequences on jurisdictions that miss building permit review deadlines. It also expands housing infrastructure financing, requires local governments to review their development regulations with the goal of increasing housing production, and creates new housing reporting requirements to track local performance. Additionally, the bill reduces certain construction mandates and development requirements that supporters argue add costs and delays to new housing projects. HB 1001 passed the House 72-21 and cleared the Senate 35-13

In Idaho, a package of bills was passed, which together aim to boost housing supply and improve affordability, including:

• SB 1352: Idaho’s Starter Home Bill blocks cities from requiring lot sizes larger than 1,500 square feet and modifies setbacks to ensure 12 units per acre. (Passed the Senate 25-10; passed the House 36-34)
• SB 1354: ADUs become a permitted use (one per lot), and neither local governments or HOAs can block ADUs or impose size requirements. (Passed the Senate 25-10; passed the House 47-23)

A third bill, SB 1353, would have extended permitted uses to duplexes and twin homes, but it failed to pass this session.

Emerging Reforms

With the housing reform debate expanding beyond density and housing typology, several issues are elevating at the state level.

Those who followed the successful reform effort in Texas last year likely heard of how in Dallas, when the city responded to the requirement of multifamily housing in commercial zones by requiring luxury features. This included an eight-floor minimum (steel frame construction) plus features such as a dog park, remortgage worker space, a swimming pool, and a gym. All are designed to increase costs, which makes other communities more attractive for investment.

These types of mandates are not limited to multifamily. Both Arizona and Minnesota saw a debate over homeowners’ associations and the role these can play in housing affordability.

While the Arizona measure, rolled into the revised starter home bill, was not successful, Minnesota passed limits on HOA mandates as part of a broader HOA reform package. The Minnesota provision bans municipalities from mandating HOAs directly or indirectly, as well as banning municipalities from dictating the terms and conditions of HOA bylaws. The language signed into law was borrowed from the Minnesota Starter Homes Act.

Whether single-family or multifamily, expect more states to take action to limit mandates on luxury multifamily buildings and HOAs in 2027 and beyond.

Private provider inspections were rolled into the Indiana reforms. Under this provision, if the permitting municipality cannot perform a plan review within seven business days or an inspection within three business days of the request, a private inspector can be hired to complete the work. When this happens, the municipality must refund plan review fees.

Georgia passed broad-based permit streamlining this year. SB 447 requires counties and municipalities to act on development and building permit applications within specified timelines, provide clear written reasons for permit denials, and establish objective permit approval criteria. The law also limits the ability of local governments to introduce new review comments during resubmissions, requires public permit-tracking systems in larger jurisdictions, and strengthens the use of third-party inspections.

In Washington, lawmakers passed HB 2418 to also help streamline permitting for housing allowed under the reforms passed in previous years.

The One Constant: Local Opposition Remains

Local opposition remains firm in states where reforms have not progressed. The Starter Home Acts of Minnesota and Arizona were once again held back by local opposition, despite the worsening of the housing crisis in these two states. Illinois, in its first major year pushing reforms, saw Gov. Pritzker’s initiative die as a standalone measure, with local opposition cited as the leading factor.  

“Everyone agrees we need more housing,” said Nick Erickson, executive director of Housing Affordability Institute, “until it requires changing the rules that created the shortage.”

The Work Continues

Work on housing reform continues, regardless of the status of the legislative calendar.

North Carolina and California have several weeks remaining on their legislative calendars, and our project page will continue to be updated until the California legislature adjourns on Aug. 31.

Where legislatures have adjourned, policymakers continue to examine which reforms can help best address the housing crisis symptoms in their states.