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YIMBYs Making Gains
The Mercatus Center has an interesting briefing out alleging that YIMBY-style legislation is "going vertical" in 2015.
"With no relief from high home prices and rents, more and more state legislators are interested in pursuing housing reform. As a result, state legislatures set new records for the number and strength of new laws intended to unlock homebuilding," they write.
The report shows that 412 pro-housing bills were introduced this year compared to 263 in the previous legislative year, with 123 pro-housing bills passed from July 2024 through June 2025, 102 of those in the first six months of 2025. This represents a dramatic acceleration in housing reform efforts, with states like Texas, Montana, Washington, and California leading major legislative packages.
Importantly, the movement has expanded beyond traditionally high-cost coastal states to include states in the South and Midwest, which have less acute affordability problems and have not been part of the housing conversation in years past, such as Iowa and Arkansas passing strong accessory dwelling unit (ADU) laws.
The reforms encompass both multifamily and single-family housing strategies, though with a notable emphasis on density-enabling policies. For apartments and higher-density housing, states are implementing transit-oriented development laws, eliminating or reducing parking minimums, allowing single-stair buildings up to six stories, and enabling residential construction in commercial zones. Washington did away with local parking minimums almost entirely, Montana eliminated them for homes up to 1,200 square feet, while Texas's SB 840 sets a new standard for bills to legalize housing construction in commercial districts.
For single-family housing, the reforms focus on enabling more units on existing lots rather than traditional suburban expansion. The most popular reform continues to be ADU legalization, with Maryland, Massachusetts, New Hampshire, and Nevada passing new ADU laws. States are also reducing minimum lot sizes - Texas's SB 15 cuts minimum lot sizes to 3,000 square feet for large subdivisions in populous cities, while Maine's LD 1829 caps minimum lot sizes statewide at 5,000 square feet for lots with sewer and 20,000 square feet for those with septic and allows at least three homes on each sewered lot.
Overall, this seems to be good news. As you'll recall if you read our previous reporting on this issue, we've become convinced that YIMBY needs to focus not (certainly not primarily) on building more apartments, but on building more single-family housing, because that is what most Americans say they want and that is the most pro-family option. Americans persist in telling every survey taker who will listen that they want to have a family and they want to have it in a proper house with a garden.
This is important because the preferences of real estate developers and urbanite YIMBY advocates may be different and may end up being counterproductive. On the whole, however, these reforms fall under the banner of what's been called "gentle density," allowing slightly more units within new neighborhoods rather than trying to recreate Manhattan everywhere. So good news overall.
Policy News You Need To Know
#BLS — Yesterday we laid out the case for the BLS being politicized. So we have to point out that numerous bipartisan figures, including former Trump BLS Commissioner William Beach, are saying the BLS was not politicized. Beach appeared on the excellent Odd Lots podcast on Bloomberg, and made the following arguments: the large revisions in the July jobs report were not evidence of political manipulation but rather a normal part of the data collection process - revisions occur because the BLS keeps the survey window open for additional months to capture responses from smaller businesses and local governments that typically respond later than large corporations. He went on to say that revisions are particularly common during economic turning points, and in this case, the revisions likely reflected the impact of supply shocks from tariff policies and immigration changes on smaller businesses, as well as the expiration of COVID-era funding affecting state and local government hiring. He emphasized that the BLS Commissioner has no control over data collection, assembly, or estimates, and that this work is done by career professionals who are "patriots" and "loyal Americans" committed to objectivity (the last part definitely sounds suspicious, but we'll take his word for it).
#RuleOfLaw — Ben Whedon at Just The News reports: "Attorney General Pam Bondi on Monday signed an order for a federal prosecutor to present evidence to a grand jury to mull charges related to the Russia collusion hoax."
#OBBBA — Mike Pence's group, "Advancing American Freedom," is circulating a memo to House Republicans today with talking points on selling the OBBBA to their constituents during August recess. The headlines: tax breaks, defense funding, ICE funding, and defunding Planned Parenthood. Makes sense.
#Tax — Speaking of Mike Pence's group, here's a very good policy it's supporting: AAF is "lobbying against making gambling losses fully tax-deductible," Punchbowl reports.
#TheEconomy #TheFed — Interesting: American Action Forum has introduced a tracker of the Fed's total consolidated assets, held on its balance sheet, as this is "the best indicator of the Fed's direct intervention in the economy." As Thomas Kingsley, Director of Financial Services Policy, writes, "the development of quantitative easing as a go-to tool for the Fed in times of crisis has led to an unprecedented focus on one of its traditionally unremarkable aspects – the Fed total assets. Just as with any other firm, securities that the Fed purchases are considered assets and therefore are represented on the Fed’s balance sheet. This therefore is the most reflective guide of the state of quantitative easing and, by extension, the degree to which the Fed has deemed it necessary to intervene in the economy." We will be following this tracker and bringing you updates as we feel is warranted…
#Markets — Rivian, makers of an electric truck, have sued the State of Ohio to be able to sell directly to consumers. As you know, car dealers are a protected cartel, the law forces car companies to use them as retailers, for no good economic reason. Tesla has sidestepped that law, selling direct to consumers, and thereby reaping the economic benefits of vertical integration, and other vehicle startups are learning. Would it be good economic policy to allow carmakers to sell direct to consumer? Yes. Are car dealers a huge Republican constituency? Also yes. Best to leave that one up to the courts.
#MAHA — RFK, Jr. promises an update to dietary guidelines: "The dietary guidelines that we inherited from the Biden Admin were 453 pages long... We are going to release dietary guidelines that are four, five, or six pages... that will allow people to make good choices." From now on, only two food groups: steak, and eggs.
#Politics — Batya Ungar-Sargon with a reality-check at the New York Post: "Last week 71% of Republican voters told Gallup that despite all the headlines claiming famine in Gaza, they are on Israel’s side in this war — compared to just 25% of independents and a shocking 8% of Democrats. Meanwhile, 81% of Republicans approve of Trump’s handling of the situation, including his clear and proud Israel backing."
Chart of the Day
Tariffs are now raising approximately 1.1% of GDP (at an annualized rate) in new revenue for the government. (Via Donald Schneider)