![[Episode 25] How SB840 Unlocks Housing in Big Texas Cities](https://dmre.com/wp-content/uploads/2025/06/Featured-Image-EP25-Texas-Land-Guys--scaled.jpg)
How SB840 Unlocks Housing in Big Cities
They explore what this means for developers navigating Texas’s notoriously restrictive suburban cities—especially in DFW markets like Frisco, Plano, Irving, and Arlington, where local governments have long resisted higher-density housing. It’s a response to the state’s mounting affordable housing crisis, but also a catalyst for speculation, municipal pushback, and shifting market dynamics.
Trey and Tom break down how the bill changes the negotiation between landowners, cities, and developers. They cover how fee waivers, lower parking ratios, and height flexibility are reshaping underwriting models—and why discipline, not hype, will be the key to winning this new frontier.
If you’re a developer, investor, landowner, or advisor working in the Texas market, this episode offers practical takeaways and market-tested perspective on what SB 840 enables—and the execution risks that come with it.
Key Takeaways:
- SB 840 permits multifamily development on commercially zoned properties without zoning changes in cities over 150,000 residents.
- Affects about 20 cities in counties with populations over 300,000, including Dallas, Fort Worth, Plano, Frisco, and Arlington.
- Targets Texas’s affordable housing shortage by enabling denser housing in areas traditionally opposed to it.
- Creates new redevelopment opportunities for underutilized commercial land—though landowners must avoid overpricing or rushing to market.
- Developers are moving quickly but staying cautious due to potential legal and market uncertainties.
- Some municipalities are expected to resist or find ways to slow-roll implementation.
- May shift demand toward infill areas and first-ring suburbs now viable under the new rules.
In This Episode:
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[00:32] Introduction to Senate Bill 840
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[01:32] Impact on DFW cities
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[03:06] Affordable housing crisis in Texas
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[04:27] Trey’s initial thoughts on the bill.
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[10:13] Key aspects of the bill
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[16:30] Market dynamics and developer reactions
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[18:21] Comparisons with Houston’s zoning practices
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[20:30] Potential pushback from cities
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[24:39] Cities’ reactions to the new law
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[26:24] Opportunities in Richardson and other sub-markets
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[30:12] Advice for landowners and developers
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[40:15] The importance of early adoption
- [44:37] Final thoughts and contact information
Resources and Links:
Trey McGhin
Tom Dosch
