Houston addresses affordability by revising parking requirements and density standards for development with Liveable Places ordinance

As the entire country grapples with affordability, cities are becoming more creative in finding ways to increase the inventory of housing stock with a variety of options that lower the hurdles to homeownership. Houston has no zoning restrictions, but does have a hefty set of ordinances that govern what can be developed. For decades, the City's development guidance prevented various housing types from being developed due to guidelines around parking restrictions, detention requirements, and outdated construction code. After several years of planning efforts, the City of Houston passed Liveable Places as a way to increase housing options. There are a few driving factors behind the ordinance:

1. If developers have the ability to build densely, there will be more housing types to choose from  and

2. More inventory helps balance the market, limiting surges in home prices due to low supply and high demand. 

While there was opposition to the potential impact on safety due to narrow lot developments, Liveable Places passed as an amendment to the chapter 42 development code of ordinances to support neighborhood scale development practices. It is Houston’s response to declining affordability in suit with cities like Austin, Decatur, and Seattle, all of which have passed similar sweeping legislation. The amendment in Houston will allow for multiple dwellings on one lot in certain cases and multi generational housing types that make up for the myriad of missing middle options in the market. This means we will see more duplexes, quadplexes, accessory dwelling units, and small apartments in the coming years. 

The intended outcome of dense, walkable communities also presents an opportunity for buyers to significantly build wealth. Historically housing has been built for the higher end of the market or large scale apartments that not everyone is able to afford. Adding to the inventory of housing options mentioned above allows buyers to not only purchase a home for themselves, but also rent additional units out for additional income. With recent changes in lending policies, buyers can even use income from rental units to qualify for loans. 

Before getting ahead of ourselves, there are still some hurdles to clear. While the development guidance has been set, Houston is still working on their construction code. Current code still makes it cost prohibitive to build the types of homes intended for density. After it is all said and done, it will take a big push to change the culture of housing in Houston. Just because we can build it, doesn’t mean people will build it or buy it. 

If you are unsure of how Liveable Places affects you, your community, or business contact us to schedule an appointment to discuss your specific situation.