Texas Just Passed a Major Housing Reform — Here’s What It Means for San Antonio

What will Texas’ new housing laws do for San Antonio’s real estate market and your ability to buy or sell a home?

In 2025, the Texas Legislature passed Senate Bill 15 and Senate Bill 840, designed to make housing more plentiful and affordable by loosening long-standing zoning and lot-size restrictions. For San Antonio, these changes could mean more housing options, smaller and more affordable homes, and a shift in how neighborhoods grow — but the real effects will unfold gradually.

What the New Laws Actually Do

Senate Bill 15: Opening the Door to Smaller, More Affordable Homes

SB 15 focuses on easing local building restrictions that have historically limited how many homes could be built in a given area. Specifically, it:

• Removes rules that require homes to sit on large lots
• Encourages smaller lot sizes (as small as ~3,000 sq ft)
• Allows more homes per acre, especially in new subdivisions

This means that developers can now build more homes in the same amount of space — and that could help lower the overall price per home.

Senate Bill 840: Making It Easier to Build in More Places

SB 840 changes how commercial land can be used, requiring cities like San Antonio to allow residential or mixed-use housing in areas that were previously restricted to retail or office use. It also limits the ability of neighboring property owners to block new housing proposals.

The goal? Make it easier to build where the infrastructure already exists — turning empty storefronts or office parks into places where people can live.

What This Means for San Antonio Buyers and Sellers

For Homebuyers

• More choices in the future: Expect to see a rise in smaller, more affordable homes — especially townhomes or single-family homes on compact lots.
• More entry-level options: First-time buyers who’ve felt priced out may start to see more homes within reach as new developments come online.
• A chance to live closer in: With zoning changes, housing could start appearing in parts of the city that previously had few or no options.

For Sellers

• Changing competition: If you're selling a traditional large-lot home, new smaller-lot homes nearby could impact pricing or buyer preferences.
• Neighborhood shifts: Areas once dominated by large lots might start seeing more variety — including attached homes, duplexes, or mixed-use developments.

For Renters

• More supply, less pressure: As new apartments and mixed-use buildings are built, competition for rentals may ease, potentially slowing rent increases.
• New pathways to ownership: Smaller homes or townhomes might serve as a more accessible first step toward buying.

Will This Make Housing More Affordable in San Antonio?

Yes — but not overnight. These new laws lay the groundwork for more housing options, but construction takes time. And while increased supply tends to ease price pressure, it won’t cause prices to plummet. What it will do is help slow down the pace of price increases and offer buyers and renters more variety.

Think of this as the beginning of a long-term shift. If San Antonio fully embraces the new rules and adapts its permitting and planning processes, we’ll likely see more “missing middle” housing — homes that fill the gap between large suburban houses and apartment complexes.

What to Watch Going Forward

• New subdivisions with smaller lots — especially in growing areas on the city’s edge
• Re-purposed commercial spaces — think old shopping centers turning into housing
• Increased infill development in central San Antonio, where builders can now add homes in previously limited spaces

These changes won’t happen all at once, but you’ll start noticing shifts in where and how new homes are built.

Texas just made its most significant housing reform in decades, and San Antonio is set to benefit. With fewer restrictions on lot size and zoning, more types of homes can be built — potentially making it easier for you to find a home that fits your budget and lifestyle. Whether you're looking to buy, sell, or rent in San Antonio, these changes are worth watching.Curious how these new laws could affect your neighborhood or your next home search? Let’s talk. I’ll help you make sense of what’s changing — and how to take advantage of it.

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