The two phases
| HOME Phase 1 | HOME Phase 2 | |
|---|---|---|
| Adopted | 7 December 2023 | 16 May 2024 |
| Applications accepted | 5 February 2024 | 16 August 2024, except Wildland-Urban Interface and Uprooted Report properties; citywide 16 November 2024 |
| What it allows | Up to three units on SF-1, SF-2, SF-3 property: a duplex, two-unit or three-unit use, tiny homes included | "Small lot single-family" use: one home on a lot of at least 1,800 sq ft and under 5,750 sq ft |
| Coverage limits | 40% building coverage, 45% impervious cover; garages and carports count | Base zone's impervious cover (SF-4A small lots: 55% building, 65% impervious) |
| Path | Building permit | Building permit if the lot is already under 5,750 sq ft; otherwise a subdivision (infill plats of 1 acre or less) |
All figures are from the City's HOME Amendments page. Phase 1 also dropped the limit on unrelated adults in a unit and the old primary/secondary unit, guest house and accessory apartment categories, so a backyard unit is now one of the units, not an "accessory" one.
The City's Phase 1 tally, as of 6 October 2026: 931 applications reviewed, 742 approved, 1,482 new units approved, and the Preservation Bonus used 9 times.
The rules that change a builder's quote
- Size inside the McMansion area. Within the Subchapter F boundary, all enclosed space counts toward floor area, garages, lofts and mezzanines included. A carport is excluded only if it has at least two open sides, at least 80% open. The only floor-area exemption is the Preservation Bonus for keeping the existing house, and small-lot single-family use cannot use it.
- Height. Base zoning limits apply; the 32-foot Subchapter F limit still applies to single-family use.
- Triplexes. Three attached units in one building need the Request for Modification or AMOC form under Policy Memo PM2024-0002. Three detached units do not.
- Addresses and separation. Each unit needs its own address. Zoning sets no separation between units, but the residential building code's separation rules still apply.
- Drainage. On lots created before 16 June 2025 with four units or fewer, no drainage review. On newer lots approved under a grading plan, the plan is checked at permit and inspection, and runoff may have to go to the street before the certificate of occupancy.
- Covenants. Deed restrictions and HOA covenants are not overridden. Read yours before paying for design.
What it means when you hire
Texas has no state license for home builders or general contractors (see checking a Texas contractor), so the City's registration and the permit record are the checks. Austin requires general contractors, including homeowners acting as their own, to register with the City before construction on a building permit (Contractor Registration). Look the builder up in Austin Build + Connect and ask for addresses of units they have taken to Final.
Ask any builder pitching a second or third unit three things: whether your lot is inside the Subchapter F boundary (it decides how much floor area you get), whether the design is a triplex or detached units (it decides the extra form), and who checks your deed for restrictions.
What 465 backyard-unit permits show
| Measure | Backyard unit (ADU) | New home |
|---|---|---|
| Permits, October 2023 to September 2026 | 465 | 4,352 |
| Firms | 322 | 645 |
| Firms with one permit | 78.0% | 45.1% |
| Usual days from issue to final | 405 | 356 |
| Finished (permits a year or more old) | 80.9% | 82.6% |
| Busiest month to file | February | March |
The backyard-unit market is fragmented: 78.0% of firms filed a single permit in three years, and only 2 filed ten or more. Expect a builder you interview to have a handful of finished units at best, so the addresses of those units matter more than a portfolio. From issue to final, a backyard unit took 405 days, so a builder promising move-in within six months of the permit is quoting the fast end.
Compare Austin backyard-unit builders by permit record →
Related
Year-by-year permit counts: Austin permit statistics. Time to final by trade: how long an Austin permit takes. Adding on instead: Austin home addition permit. Tearing down first: Austin demolition permit. The trade-off in general: ADU vs addition.
What this does not tell you
Austin's permit file does not mark which permits used HOME, so our backyard-unit and new-home counts include projects under the old rules, and two- and three-unit projects may be filed as new homes. Austin permits carry no filed value, so we cannot show what these units cost to build.
How we know this
The rules and the Phase 1 tally are from the City of Austin's HOME Amendments page, read 23 October 2026; the tally is the City's figure updated 6 October 2026. Permit counts are City of Austin issued construction permits on homes classified as backyard units and new homes, October 2023 to September 2026; days to final are from issue to final inspection.
Numbers come from City of Austin issued construction permits, data through October 10, 2026. Nobody paid to be on this page and nobody can.
Questions
- Can I build three houses on my lot in Austin?
On SF-1, SF-2 and SF-3 property, yes: HOME Phase 1 allows up to three housing units, tiny homes included, attached or detached in any combination. Applications under it have been accepted since 5 February 2024 (City of Austin HOME Amendments page, read 23 October 2026). Deed restrictions and HOA covenants can still forbid it, and the City says checking them is your job.
- What is the minimum lot size in Austin now?
HOME Phase 2 created a small-lot single-family use for lots of at least 1,800 sq ft and under 5,750 sq ft, the old standard minimum. A lot already under 5,750 sq ft goes straight to a building permit; splitting a bigger lot needs a subdivision application. The rule applied citywide from 16 November 2024.
- How much of my Austin lot can I cover with two or three units?
For duplex, two-unit and three-unit uses, 40% building coverage and 45% impervious cover in every zone, and garages and carports count toward both. Small-lot single-family use follows the base zone's impervious cover limit.
- Is a tiny home allowed under Austin's HOME rules?
Yes, as one of the three units. The City defines a tiny home as 400 sq ft or less of floor area, not counting a loft, and reviews it with a Tiny House Request for Modification or Alternate Method of Compliance form.
- How long does an Austin backyard unit permit take?
In our file the usual Austin backyard-unit permit reached its final inspection 405 days after it was issued, and a new home 356 days. That is build time after the permit, not review time.
Build your own list
Every firm with that kind of permit on record. Pick what you value. The list moves.
Related guides
- ADU cost in San Diego County: what the permits were filed at, by size
- Bellingham building permit search: eTRAKiT, the permit dashboard and public records
- Home improvement costs in Bellingham, WA (2026): what 5 kinds of jobs were filed at
- Bonded vs insured contractors: what each covers and where to check
- Medford backflow testing: who needs a device, the yearly test, and who installs irrigation backflow
- San Diego ADU Home Density Bonus Program after the 2025 changes: where it still applies, the caps, and hiring a builder
For one city
- HOME Amendments — City of Austin Development Services (accessed 2026-10-23)
- Contractor Registration — City of Austin Development Services (accessed 2026-10-23)