The Utah Legislature is in its 2026 general session, and housing is one of the most contested issues on the floor. Five bills are actively moving through the process—and together, they paint a clear picture of where the state is trying to take Utah's housing market over the next decade.

I spent time going through each one so you don't have to. Here's what's actually happening.

The clearest example of the tension playing out right now is H.B. 184.

This bill would have allowed smaller single family "starter home" lots (5,400 sq. ft. or 0.124 acres) to be built without requiring approval from local city governments on a case-by-case basis. The intent was to speed up the production of single family entry-level housing in communities where land costs are one of the biggest barriers to affordability rather than just building more town homes and condos. However, it failed in committee on February 18th.

Cities pushed back hard, and they won that round. Local governments are not ready to give up zoning control — even when the state is making a strong economic case for doing so. The "Not In My Backyard" mentality still carries significant weight in Utah politics, and this vote was a clear reminder of that.

That said, one failed bill doesn't tell the whole story. The other four bills moving through the session are actually making progress.

Two of the bills working through the session might look like administrative changes on the surface, but they're more significant than that.

H.B. 68 creates a new Division of Housing directly under the Governor's office. Housing policy is moving out of "social services" and into "economic development." In practice, that means the state is officially treating the housing shortage as an economic issue that demands a serious, coordinated response — not a side project that gets attention when there's time.

H.C.R. 6 is a formal resolution establishing a statewide framework for housing policy. The goal is to make sure state agencies and local governments are working toward the same objectives rather than inadvertently working against each other.

Neither of these breaks ground on a single home. But they represent the kind of structural change that makes future housing legislation more likely to succeed. You cannot fix a problem you are not organized around, and right now a lot of zoning and housing restrictions are tied to local city governments rather than the state.

This is where things get concrete for current homeowners.

H.B. 492 passed the House on February 24th. It doubles the state's borrowing capacity to fund infrastructure like sewers, roads, and utilities required to support new housing development. That infrastructure has to get paid for either way. Without this bill, local property taxes carry the majority of that cost. With it, the state absorbs a much larger share of the burden and cities are able to pay the state back through future tax revenues.

And then there's H.B. 477, which is likely the bill with the most direct impact on homeowners.

This bill makes detached Accessory Dwelling Units (ADUs), meaning backyard cottages, mother-in-law apartments, and guest houses a permitted use statewide.

In 2021, Utah state passed H.B. 82 allowing all homeowners (with few exceptions) the right to have internal ADUs (like basement apartments). However, H.B. 477 expands this to external units.

Right now, these projects frequently get killed in local public hearings before construction ever begins. H.B. 477 removes that barrier.

For homeowners with the right lot and layout, this could open a clear path to building a separate rentable unit on your existing property without the uncertainty of a public approval process that has killed these projects for years.

Here's what I'm telling clients:

If you're a buyer: H.B. 477 is worth factoring into your home search. A property with ADU potential would have a large lot, detached garage, or a separate entrance. These types of properties just became a more compelling long-term investment. It's the kind of feature that can offset a meaningful portion of your mortgage if you eventually build and rent.

If you're a seller: If your property has ADU potential, that is a legitimate selling point right now while this legislation is getting attention. Buyers are paying closer attention to these features than they were even 12 months ago. It's worth highlighting if it applies to your home.

Utah's legislature is making moves. The question is whether you are too.

These bills are going to reshape what's possible for homeowners, buyers, and investors in this state over the next several years. The people who understand that early have an edge. The people who wait until it's on the evening news usually don't.

If you've been thinking about buying or selling in 2026 (even just passively), let's have a real conversation. Not a pitch. Just an honest look at what your options are right now, while conditions are still in your favor.

Reply to this email or give me a call. Tell me where you're at and we'll go from there.

Here to serve,

P.S. If you own a home with a large lot or a detached garage, H.B. 477 could add income potential to your property. Before you do anything — let's talk about your specific situation and what your home might be worth in this market.