2026 Legislative Session: 4 Housing Wins for Idaho REALTORS®

The second regular session of Idaho’s 68th Legislature wrapped up on April 2nd, and it turned out to be a notably productive one for housing. According to Idaho REALTORS® Government Affairs Director Max Pond, several of the bills passed this session made meaningful progress in strengthening property rights, improving housing affordability, and giving homeowners more flexibility.

Here’s a quick breakdown in plain terms:

• Short-term rentals (HB 583): This law makes it clear that short-term rentals should be treated the same as long-term rentals. That means no extra hoops like special licenses or registrations. It goes into effect July 1, 2026.

• Homeowner’s exemption (HB 843): Previously, the property tax exemption could be prorated depending on when you applied. Now, homeowners can claim the full $125,000 exemption no matter when they apply during the year.

• Starter home subdivisions (SB 1352): Larger cities will now have to allow developments specifically aimed at starter homes on vacant land of four acres or more. The goal is to ease zoning rules—like lot sizes and setbacks—to make entry-level housing more available.

• Accessory dwelling units (SB 1354): Homeowners will have more freedom to add ADUs, like guest houses or in-law suites. Cities and HOAs won’t be able to completely ban them, making it easier to expand housing options on existing properties.

Overall, these changes are aimed at making housing more accessible and giving property owners more control over how they use their land.

Information from Idahorealtors.com