Austin Updates Land Code: Single-Family Lots Now Allow Three Housing Units

The HOME Initiative, launched in 2024, permits up to three housing units on most single-family lots in Austin while legalizing tiny homes in those zones and removing limits on unrelated adults living together. These provisions operate under the city's Land Development Code, Title 25, and Subdivision Regulations, Title 30, which set the rules for what can be built and where across Austin.

Austin maintains 16 residential zoning districts, including Single-Family SF-1 through SF-6 and Multifamily MF, along with 13 commercial zoning districts, four industrial districts and five special purpose base districts. The HOME changes apply primarily within the single-family categories and introduce new pathways for smaller developments on existing parcels.

Small-lot provisions and infill process

HOME Phase 2, covering 2024 to 2025, added a small-lot single-family category that allows homes on lots as small as 1,800 square feet and created an infill subdivision process for smaller parcels. Standard setbacks for SF-1 to SF-3 lots remain a 25-foot front setback, reducible to 15 feet in some cases, with five-foot interior side setbacks, 15-foot street side setbacks and 10-foot rear setbacks.

For Austin residents, these rules determine how property owners can configure living space on their lots without needing larger parcels. Households seeking additional units or smaller housing types now have defined options within the existing zoning framework rather than relying solely on larger lot requirements.

The Land Development Code continues to govern all new construction and subdivisions, so property owners must still meet the specific district standards when adding units or dividing lots. Residents considering these options review the code provisions that apply to their particular zoning district before proceeding with plans.

Further implementation of the infill subdivision process and small-lot category is expected to continue under the HOME Phase 2 timeline already established by the city.