Idaho Mandates 1,500-Sq-Ft Housing Lots to Spur Starter Homes as Prices Hit $585,000
Updated
Updated · The Washington Post · May 18
Idaho Mandates 1,500-Sq-Ft Housing Lots to Spur Starter Homes as Prices Hit $585,000
1 articles · Updated · The Washington Post · May 18
Idaho’s new law forces cities of at least 10,000 people to allow housing on lots as small as 1,500 square feet—the smallest statewide minimum in the U.S.—for developments on parcels of at least 4 acres.
Lawmakers say the mandate is meant to widen starter-home supply, curb suburban sprawl and protect farmland after Idaho’s median home-for-sale price climbed to $585,000 from about $300,000 in 2018.
The measure targets new subdivisions rather than infill in existing neighborhoods, and even supporters say builders may not use the 1,500-square-foot floor often; one major builder expects more value from being able to go down to 5,000 square feet.
Opponents argue the state is overriding local control and pushing homes too small for many buyers, while housing advocates say large-lot zoning—8,500 square feet in some cities—has blocked affordable projects despite strong demand.
Can tiny lots solve a housing crisis without changing the American Dream?
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Idaho’s 2026 Housing Reforms: Tackling Affordability, Supply, and Zoning in a Booming State
Overview
Idaho is facing a severe housing affordability crisis, similar to other fast-growing areas in the U.S. Despite having fewer building restrictions than neighboring Oregon, Idaho’s housing prices have surged rapidly, stretching the budgets of both homebuyers and renters and making affordable options hard to find. The state’s 2026 legislative response introduced a comprehensive package of reforms, aiming to increase housing supply and lower costs by legalizing accessory dwelling units, allowing smaller lot sizes, and streamlining building codes. While these changes are expected to gradually improve affordability, the impact will likely be incremental, with ongoing challenges for both residents and local governments.