There are many ideas currently being discussed to solve the problem of home buying difficulties in Dallas.
One thing worth seriously considering is lowering the minimum lot size required for the construction of new homes.
The idea is not without controversy. When development first began, Dallas and surrounding cities had an abundance of land, making it much easier to buy large lots. But now, land prices are a major factor in rising prices, and many existing neighborhoods worry that shrinking land area sizes will dramatically change where they live.
I agree that the city needs to heed the concerns of longtime residents, but I believe reducing the amount of land required to build housing would go a long way to ensuring Dallas continues to thrive as an affordable city for people of all income levels, especially the middle class who are often pushed out by the high cost of living here.
In December, five Dallas City Council members signed a memorandum of understanding to begin discussions on reducing minimum lot sizes and allowing two- and four-family homes to be built by right of way in single-family zones.
The discussion predictably became chaotic, as complex and potentially confusing solutions were all lumped together. Different zoning and land use changes need to be considered separately. The idea of allowing duplexes by right should be put on hold for now, but city officials should seriously consider the practical solution of reducing minimum lot sizes.
In Dallas, minimum lot sizes vary but range from about 5,000 to 7,500 square feet. The Austin City Council recently passed a resolution to reduce the minimum lot size from 5,750 square feet to 2,500 square feet. The expectation is that reducing the minimum lot size will allow developers in the market to build more single-family homes. Smaller lots will reduce the price of land, and therefore homes.
This measure will result in more housing being built while encouraging home buying over renting. Lowering the minimum lot size doesn’t mean that larger lots will go away, it just means that families who can only afford smaller homes will have an option other than renting.
Lowering minimum lot sizes is accepted across the political spectrum as common-sense policy. The Texas Public Policy Foundation, a conservative think tank, recently released a report stating that relaxing local regulations on lot size would allow the market to work better to close the housing affordability gap. At the state level, Senator Paul Bettencourt has introduced a bill that would prohibit large Texas cities from mandating lot sizes of more than 1,400 square feet. Cities should work with residents now to gauge interest in these types of reforms before the state enacts them. City officials could consider piloting smaller lot sizes in certain areas where residents are open to densification.
For Dallas to remain the vibrant city it is, residents and city officials need to work together to figure out how to best utilize the land. Reducing minimum lot sizes could be a thoughtful solution to help younger residents without impacting longtime homeowners.
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