- The Texas House has approved Senate Bill 840, allowing apartments and mixed-use developments on commercial sites without rezoning in cities with over 150K people.
- The bill is part of a broader strategy to address the state’s housing shortage, which exceeds 300K units.
- If enacted, the law would enable “by-right” housing development on retail and office sites, streamlining projects and lowering development costs.
A Shift In Strategy
Texas lawmakers are backing a major shift in land use policy aimed at jump-starting housing development, reports The Real Deal. Senate Bill 840 allows housing on commercial sites—like strip malls and offices—without rezoning, easing development across Texas cities.
Targeting The Largest Markets
The bill applies to cities with populations over 150K in counties of at least 300K, covering major metros like Dallas, Houston, San Antonio, Austin, and Fort Worth, as well as growing suburban hubs including Frisco, Plano, and McKinney.
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Easing The Path To Housing
Sponsored by Sen. Bryan Hughes (R-Mineola), the bill is part of a broader push to tackle the state’s estimated 320K-home shortage. Eliminating zoning changes helps developers avoid delays, reduce costs, and deliver housing units to market faster in Texas cities.
Industry Impact
Developers stand to benefit significantly. “By-right” approval could open up vast swaths of underutilized commercial real estate to residential use, especially in markets with high office and retail vacancy. It’s a major win for multifamily builders looking to scale in urban areas constrained by local zoning.
Broader Trend
Texas joins a national movement to rethink land use amid a housing affordability crisis. California and Washington have passed similar laws, reflecting bipartisan support for adaptive reuse and upzoning measures.
What’s Next
The bill now awaits Senate approval of House amendments before heading to Gov. Greg Abbott’s desk. If signed, the bill could transform Texas cities by turning outdated commercial areas into vibrant, mixed-use residential communities.
