From Backyards to Boulevards: NC’s 2025 Push to Expand Residential Development

This week CITYBUILDER CITIZENS BUILD CITIES published the following special report detailing four significant statewide bipartisan housing bills.  As the author, Jenn Truman points out, “These bills are a big deal for the future of housing in North Carolina.”

For the full article see, Special Report:  NC Lawmakers Push for More Housing by Jenn Truman

Here’s the recap:

North Carolina lawmakers are taking bold steps to address the housing crisis and modernize development rules. Here’s a quick look at four impactful bills filed in the 2025 legislative session that aim to make housing more accessible, flexible, and affordable.

1. Expand Middle Housing (Senate Bill 497)

This bill would require local governments to permit middle housing types—such as duplexes, triplexes, fourplexes, and townhomes—in all residential zones, even those previously reserved for single-family homes. It streamlines approval processes and bans excessive zoning restrictions that discourage smaller-scale multifamily development. The goal? More housing options in existing neighborhoods.

2. Allow Housing Near Jobs (Senate Bill 499)

This bill allows residential development “by right” in commercial, office, and retail zones. Developers can also convert existing commercial buildings into housing—no rezoning or conditional use permits required. This move aims to increase walkable, mixed-use communities and put homes closer to where people work.

3. Single Stair Building Code Reform (Senate Bill 492)

A game-changer for mid-rise and low-rise multifamily construction, this bill would permit qualifying buildings to use a single-exit stairway—a practice already allowed in other states and countries. The reform allows for more efficient design and lower construction costs, while maintaining strict safety standards like fire-rated construction and sprinkler systems.

4. Regulation of Accessory Dwelling Units (Senate Bill 495)

This bill mandates that at least one ADU be allowed per single-family home in residential zones. It prevents local governments from banning ADUs or placing excessive burdens (like parking or conditional permits), ensuring homeowners can build backyard cottages, garage apartments, or in-law suites more easily. ADUs must be under 800 square feet and meet residential code standards.

What It All Means

Together, these bills represent a significant shift in North Carolina’s housing policy, reducing red tape, unlocking more buildable land, and promoting a wider range of diverse and attainable housing types statewide. If passed, they could significantly shape the future of housing in both urban and suburban communities across the state.

For a deep dive look into each bill, download APG’s summary of each draft bill, click here.