Idaho Passes Laws To Boost Starter Home Neighborhoods

Idaho lawmakers passed two new laws aimed at unlocking the construction of smaller and cheaper homes.

Gov. Brad Little signed two new laws, Senate Bill 1352 and Senate Bill 1354, aimed at increasing housing supply, at the close of the legislative session.

SB 1352 limits the ability of cities to block high-density "starter home" developments on tracts of at least 4 acres. The bill mandates that local governments allow smaller lot sizes (down to 1,400 square feet) and removes traditional zoning barriers like setback and width requirements. Under this law, cities must permit at least 12 units per acre unless infrastructure constraints exist.

SB 1354 prohibits local governments and homeowners associations from restricting the construction of accessory dwelling units. The law guarantees property owners the right to build at least one ADU per lot and prevents authorities from imposing maximum square footage limits on these structures.

Both bills are for cities with a population over 10,000.

The Realtor.com® State-by-State Housing Report Card gave Idaho a C. Like many states, it has taken aim at improving home construction through preempting local laws that block the building of small homes.

Idaho takes aim at increasing housing supply

The two bills have been the subject of strong debate this year, with SB 1352 passing Idaho's House by a vote of 36 to 34. During a debate on the bill on March 26, legislators argued for the merits of deregulation.

Both Democrats and Republicans said the state isn't building enough small homes.

"It's trying to help that starter, young family get into a home," said Republican Rep. Jordan Redman in debate. "At some point, many Americans grow their wealth by buying a home, and I think this will help that stair-step of buying a home."

Detractors of the bill said it doesn't do enough to address infrastructure demands that could be placed on cities. Some also favored some sort of ban on institutional investors holding new homes for rent.

"This is a step that is too far for me," Republican Rep. Josh Wheeler said during the debate. "We are functionally planning and zoning from the Statehouse at this point."

The Idaho Realtors supported the measure, calling it "a meaningful win for housing affordability and attainability."

The ADU legislation passed more easily, by a vote of 25 to 10 in the Senate and 47 to 23 in the House.

Republican Rep. Erin Bingham said it bolsters local property rights and increases housing inventory. Existing HOA bans can remain in effect, and cities will be able to opt out.

"ADUs are means for property owners to fully embrace their economic opportunities within their property right and build financial resilience for their family," Madeline Clark, senior policy analyst at Mountain States Policy Center, said during the hearing.

Another measure, House Bill 706, advanced to Little's desk. That would allow the construction of apartment buildings with a single stairwell, allowing for more residential space in multifamily buildings.