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A bill with a provision aimed at increasing the state’s housing supply cleared the North Carolina House of Representatives and was sent to the governor on Tuesday.
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The provision expands the development of accessory dwelling units, or ADUs, which are housing units built on the property of a single-family home. These units, also called “backyard cottages” or “granny flats,” can be built in backyards or attached to the primary residence like add-ons, basements or garages.
The bill received an 82-28 House vote on Tuesday, after a unanimous vote in the Senate last week. Now that the bill has cleared its last hurdle in the legislature, it awaits a signature from Democratic Gov. Josh Stein, who has expressed support for ADU expansion.
“What we should be doing is about trying to remove barriers to folks who want to build more housing units. What we need in North Carolina are more units,” Stein told The News & Observer on Tuesday. “More people moved to North Carolina last year from other states than to any other state in the country. We’re one of the fastest growing states in the nation; we’ve got to produce more housing. We’ve got to get rid of these rules that inhibit the construction of new housing.”
The bill requires cities with populations of 50,000 or more to allow residents to build ADUs and removes local governments’ ability to create various regulations on the properties, like requiring special zones and permits from residents. The bill creates an exception for cities in the coastal region.
In the Republican-controlled legislature, housing is one issue bringing Democrats and Republicans together — even if most House Democrats voted against this bill, which addresses various changes to state regulations.
Rep. Pricey Harrison, a Greensboro Democrat, said during discussion about the bill that it was “pretty good” but that she had concerns about provisions that weren’t discussed in a committee on regulatory reform. Harrison said that she was concerned that the state Department of Environmental Quality did not have time to weigh in on environmental regulatory changes that affect mining and composting.
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“It’s not that anybody agree disagrees with the overall good part of the bill,” House Democratic Leader Robert Reives told The News & Observer on Wednesday. “It’s just that (legislators) have a constant habit of sticking something in.”
Reives said that the legislature missed its opportunity to pass more housing legislation this session.
“The number one thing on my mind right now is housing, not just in affordability generally,” he said. “Because here’s the thing about housing: if I can help you get a house, I can help you afford the other stuff because you have an asset.”
Lawmakers say that this provision in the bill is crucial to increasing the state’s housing supply. As North Carolina continues to be a top choice for those moving within the country, the housing supply hasn’t kept up.
“There’s always trade-offs when you’re dealing with these issues of local government zoning and housing. There’s no question we need more housing in this state,” House Speaker Destin Hall told The News & Observer on Tuesday. “One of the most effective things I think this body can do is a provision just like that.”
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Dawn Baumgartner Vaughan contributed to this report.
This story was originally published August 5, 2026 at 11:59 AM.