Utah’s housing market is at a breaking point. Affordability has become a daily struggle for many families across Salt Lake City, Cedar City, and Hurricane. During the 2025 legislative session, lawmakers took aim at the problem — but most zoning reform bills failed to pass.

As a real estate agent and investor working boots-on-the-ground in Southern Utah, I’ve seen how these policy decisions directly impact buyers, sellers, and rental property owners. Here's what went down, why it matters, and what to watch for moving forward.

What Lawmakers Tried to Do

Several bills focused on increasing housing supply through zoning reform:

• HB 88: Would’ve allowed Accessory Dwelling Units (ADUs) in more residential zones

• HB 90: Proposed reducing lot size minimums to increase housing density

These changes could’ve helped homeowners build casitas, generate rental income, or reduce development costs — especially useful in high-demand areas like Salt Lake and growing markets like Cedar City.

But both bills failed.

What Actually Passed

While the bigger reforms didn’t make it, a few wins slipped through:

• SB 181: Eliminates city-mandated parking and garage requirements — reducing development costs by an estimated 12.5%

• HB 37: Requires the state to create an official housing plan and encourages local governments to support owner-occupied affordable housing

• SB 250: Allows tax revenue to fund affordable homeownership programs through the Utah Inland Port Authority

These changes open the door, but without local zoning cooperation, progress stays limited.

Utah Real Estate Isn’t One-Size-Fits-All

Salt Lake City has public transit and population density that other cities like Eagle Mountain simply don’t. Yet the same statewide policies apply to both — creating friction between what Salt Lake needs and what the legislature allows.

Because Salt Lake leans blue politically and the state leans red, this disagreement turns zoning into a battleground. Subsidies, middle housing, and ADUs often get blocked by “not in my backyard” pushback.

So What Needs to Happen?

Zoning reform isn’t just about ADUs or duplexes. We need real flexibility:

• Small-lot subdivisions

• Middle housing (e.g., fourplexes, townhomes)

• Mixed-use development near transit

• More incentives for good landlords

• Targeted subsidies for affordable units

Without changes to zoning rules, many affordable housing solutions can’t even be built. Supply alone won’t fix this — but zoning reform makes solutions possible.

Why It Matters to You

Whether you’re:

• Buying your first home

• House hacking with a casita

• Investing in a short-term rental in Hurricane

• Selling in a shifting market

…zoning laws affect your next move. Know what’s changing and how to use it to your advantage.

Need help navigating Utah real estate under the new 2025 zoning rules?
Click here to connect with me — I’ve got deep roots in Southern Utah and real answers, not fluff.

FAQ
Q: What are ADUs and are they allowed in Utah in 2025?
Accessory Dwelling Units are smaller housing units built on the same lot as a primary home. HB 88 aimed to allow them broadly, but it didn’t pass. Some cities still allow them locally.

Q: How do zoning laws affect Utah real estate investors?
Zoning rules control what can be built or rented. If you’re trying to add value with an ADU, convert a garage, or build a rental casita, zoning will make or break your strategy.

Q: Where’s the best place to buy affordable real estate in Utah right now?
Cedar City, Hurricane, and outlying areas of Salt Lake still offer value — but you need to understand local zoning and growth patterns to make a smart move.

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