Highlighting 2025 Wins in Housing Policy

Americans for Prosperity (AFP) strives to create an economy that works for all—empowering people to earn success and realize their potential. Overly burdensome regulations, usually at the local level, related to housing, land use, and zoning make housing more costly and erect barriers to economic growth that inhibit opportunity and geographic mobility. These barriers include limiting economic opportunities and making it harder to start and raise families. Excessive housing regulations make it harder to achieve the American Dream and reduce property rights for homeowners.  

At the end of last year, AFP published A Roadmap For: Housing Policy Reform, offering a menu of deregulatory reform options for states across the country. 

Several AFP state chapters worked on reducing housing barriers in states in 2025, with wins across the country. Here are some of the highlights: 

Texas 

AFP-Texas was instrumental in passing several deregulatory housing reforms in 2025 as part of a broad, statewide coalition of reform-minded organizations. SB 15 reduces the minimum lot size requirement for new single-family home developments in large cities to just 3,000 square feet, reducing restrictions on developers and allowing for the construction of less expensive starter homes for families. HB 24 reforms Texas’ protest petition process, which previously had allowed a small minority of property owners to derail housing projects. SB 840 allows apartment buildings and mixed-use buildings in commercial areas in major Texas cities, removing barriers to allowing Texans to live close to shops and other amenities if they choose. SB 2477 legalizes conversions of office buildings into residential or mixed-use buildings, reducing vacant properties and increasing the housing supply. 

New Hampshire 

AFP-New Hampshire worked to pass several housing reform bills in 2025. Notably, HB 399 creates a commission to study New Hampshire zoning laws and propose reforms, similar to the successful Montana housing task force. HB 577 reforms and expands New Hampshire’s legalization of accessory dwelling units (ADUs), increasing property rights for homeowners. HB 631 legalizes multi-family, mixed-use, and office-to-residential conversions in commercial areas, increasing housing supply and offering New Hampshirites the ability to live close to commercial centers if they choose. SB 284 reduces parking mandates, lowering burdens for developers and homeowners. SB 188 allows property owners to contract with licensed third-party building inspectors and plan reviewers rather than waiting for government reviewers, increasing choice and competition and reducing inspection delays. These are just a few of the many housing reform bills AFP-New Hampshire helped pass. 

Montana 

Following the passage of several landmark housing reform bills in 2023, AFP-Montana continued to work on housing bills this past session. SB 243 limits local building height restrictions in downtown and commercial areas of cities, giving property owners greater freedom to build taller buildings. HB 492 removes burdensome parking mandates in Montana cities, reducing costs for residents and businesses. And SB 252 prohibits zoning laws that treat manufactured or factory-built housing differently from other housing types, allowing for more choice and innovation in Montana’s housing market. 

Iowa 

AFP-Iowa helped pass SF 592, which legalizes ADUs on single-family zoned lots across the Hawkeye State. ADUs are additional residential units in, attached to, or near an existing, larger home, such as a cottage in the backyard, or a basement or attic converted into a separate living space. Homeowners can use these units to house family members or rent out for extra income. Allowing ADUs increases property rights for homeowners to use their property as they see fit. 

Kansas 

AFP-Kansas was instrumental in passing HB 2088, which institutes a clear deadline for decisions on permit applications for single-family homes. Delays in approving building and other permits are costly to homebuyers, as one study from Washington state estimated the average permit approval time at over 6 months and adding over $31,000 to the cost of a house. HB 2088 enacts a 60-day “shot-clock” for decisions on permits for single-family homes and any application not decided on within that time period is automatically approved. 

Housing affordability continues to be a top issue nationwide, and AFP looks forward to advancing free market solutions across the country to the housing crisis in 2026. 

Ilana Blumsack is a Housing Policy Analyst at Americans for Prosperity.