New Texas Housing Laws Taking Effect September 1 Could Reshape Arlington's Commercial Corridors

A package of Texas housing laws set to take effect on September 1, 2025, is expected to change how and where homes are built in Arlington, a city of about 394,000 people. Senate Bills 840, 2477 and 15 and House Bill 24, all signed by Governor Greg Abbott, aim to narrow a statewide housing shortage estimated at 320,000 homes.

The measures apply to cities with more than 150,000 residents located in counties with more than 300,000, a group that includes Arlington, Dallas and Fort Worth. They were passed with bipartisan support during the 2025 legislative session. Texas home prices climbed 39% between 2020 and 2025, and the Texas Comptroller reported that housing affordability hit a 40-year low in 2024.

SB 840 is the centerpiece. It permits multifamily housing "by right" in commercial, office, retail, warehouse and mixed-use zones, meaning developers would not need to seek rezoning and would avoid the neighborhood opposition that often stalls projects. SB 2477 simplifies the conversion of commercial buildings, such as vacant offices, into apartments. HB 24 raises the share of nearby property owners needed to file a formal rezoning protest from 20% to 60%. SB 15 sets a cap of 3,000 square feet on single-family lot sizes to encourage more affordable homes.

Arlington's office vacancy rate is between 24% and 28%, and supporters see room for conversions of underused buildings, particularly near Interstate 20. "This could breathe life into empty strip malls," said Javier Martinez, an Arlington realtor. Teacher Maria Alvarez said that living close to her school without spending a fortune "would be a dream."

Concerns center on whether public services can keep up. Tarrant County's 2.1 million residents already put pressure on schools and roads, and Arlington ISD serves about 60,000 students. Traffic on I-20 is another worry, according to TxDOT data. Parent Sarah Thompson said she is excited about more housing options but worried about overcrowded schools, and plans to speak at city council meetings.

The laws have also revived debate over local control. Social media posts reflect optimism among developers alongside fears among residents about preserving neighborhood character. Some cities are reportedly considering historic district designations or environmental rules to limit projects, since SB 840 exempts such areas. Downtown Arlington is one example of a historic district. "We need more homes, but not at the cost of our community's charm," Martinez said.

Tarrant County added 5,000 housing units in 2024, according to the Texas Real Estate Research Center, but demand continues to outpace supply. The changes could bring thousands of new homes, especially along East Arlington's commercial corridors, though infrastructure upgrades will be needed to support that growth.

Guidance drawn from the Texas Municipal League and local resources encourages residents to attend city council meetings in September to raise infrastructure concerns. Developers are advised to file permits before September 1 to take advantage of SB 840's streamlined approvals. Homeowners associations may enforce deed restrictions that limit multifamily projects, so buyers and builders should check covenants. Those interested in conversions can contact Arlington's Planning Department at 817-459-6502.

With Arlington preparing for the 2026 FIFA World Cup, supporters argue that a larger housing supply will help the city meet growing demand. The Southeast Connector project is also expected to ease commutes for new residents.