Lawmakers in Idaho have approved sweeping housing reforms aimed at increasing supply and affordability by encouraging smaller homes and higher-density development.
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Two newly passed bills—SB 1352 and SB 1354—introduce significant changes to zoning and land-use regulations, requiring local governments to accommodate more flexible residential development patterns. The measures are designed to address rising housing costs and limited inventory across the state.
Under SB 1352, cities with populations over 10,000 must allow residential lot sizes as small as 1,400 square feet, making Idaho the first state to mandate such compact lot allowances. The law also removes certain zoning barriers, including setback requirements, which can limit how properties are developed.
The legislation reflects a growing national trend toward loosening zoning restrictions to increase housing supply. By enabling smaller lot sizes, lawmakers aim to make “starter homes” more attainable for first-time buyers and middle-income households.
In parallel, SB 1354 focuses on expanding the use of accessory dwelling units (ADUs), often referred to as “granny flats.” The law prohibits local governments and homeowners associations from restricting the construction of at least one ADU per lot.
Supporters say the changes strengthen property rights while addressing the state’s housing shortage. According to lawmakers backing the bill, the reforms are intended to increase inventory without requiring large-scale new developments.
However, the legislation does include some flexibility. Existing HOA restrictions can remain in place under certain conditions, and cities are given the option to opt out of specific provisions.
The new laws arrive as housing costs continue to climb in cities such as Coeur d'Alene, where median home prices have surpassed $500,000. For developers, the ability to build on smaller lots and add ADUs could unlock new project opportunities, particularly in constrained markets.
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Housing advocates argue that reducing regulatory barriers is critical to boosting construction activity and closing supply gaps. Smaller homes on compact lots typically require less land and lower upfront costs, making them more feasible in high-demand areas.
In addition to the two primary bills, a separate measure that would allow single-staircase residential buildings—a design often associated with mid-rise multifamily housing—has advanced to the governor’s desk. If approved, it could further expand development options and improve building efficiency.
While the long-term impact remains to be seen, the legislation signals a clear shift in state-level housing policy. By prioritizing density and flexibility, Idaho joins a growing number of states experimenting with reforms to address affordability challenges.
Developers, planners and local governments will now be tasked with implementing the new rules, which could reshape residential construction trends in the coming years.
Originally reported by Diana Ionescu in Planetizen.
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