A future CDA neighborhood might look a little different from the subdivisions many buyers are used to seeing around North Idaho.
Instead of every detached home sitting on a relatively generous lot with a wide driveway and large backyard, some new developments could eventually fit more homes into the same amount of land, with narrower lots, smaller yards, and houses sitting closer together.
That possibility comes from Idaho's new small lot housing law, Senate Bill 1352, which took effect July 1, 2026. The law creates a new framework for qualifying "starter home subdivisions" in larger Idaho cities and limits how restrictive local lot-size rules can be for those projects.
For CDA homeowners and buyers, the important question is not whether every neighborhood is about to become denser. It is much more specific: Could this law change what gets built on future development sites around CDA? The answer is yes, potentially, but only under specific conditions.
No, Your Neighbor Cannot Suddenly Chop Their Lot Into Six Pieces
This is probably the biggest misconception worth clearing up first. The new law is not a blanket permission slip for every existing homeowner in CDA to subdivide an ordinary residential lot into tiny parcels.
Under the enacted version of Senate Bill 1352, a "starter home subdivision" must involve at least four acres of land and be designed around detached single-family homes on smaller lots. The statute applies only in Idaho cities with populations greater than 10,000, and CDA easily clears that threshold.
The U.S. Census Bureau estimated the city's population at 58,179 as of July 1, 2025. That means the places most likely to feel the impact are larger future development parcels, not random established residential lots scattered throughout town.
The 1,500-Square-Foot Number Comes With Conditions
For qualifying starter-home subdivisions, cities cannot require minimum lots larger than 1,500 square feet, unless infrastructure, lot configuration, or environmental constraints make that impractical.
The law also restricts certain other local requirements. For these projects, cities generally cannot require front or rear setbacks greater than 15 feet, side setbacks greater than 5 feet, or lot-front widths greater than 30 feet for narrow lots. Cities must update their comprehensive plans and land-use regulations by February 1, 2027, to accommodate the new framework.
Those numbers sound dramatic when you compare them with a conventional suburban subdivision, but the law does not require every developer to build at the smallest allowable dimensions. It creates the option. That distinction matters.
Why Idaho Is Making Room for Smaller Lots in the First Place
The policy debate behind this law is really about two things Idaho has been wrestling with for years: the cost of homeownership and the way communities absorb growth. Supporters have argued that larger minimum lot sizes can make it harder to produce less-expensive entry-level homes because every house requires more land.
Smaller lots can potentially allow a developer to spread land and infrastructure costs across more homes. The Washington Post reported that supporters also see the law as a way to reduce outward suburban sprawl and preserve more open or agricultural land by allowing future housing growth to fit more efficiently inside cities.
Critics, meanwhile, have raised concerns about local control and whether state lawmakers should determine the kinds of residential patterns communities must allow. That tension is important because both sides are really talking about the same question from different directions: What should growth look like?
CDA Could See More Variety in Future Neighborhoods
CDA is exactly the kind of city where this law becomes relevant. It has well over 10,000 residents, and its continued growth means future residential land will keep attracting attention. Census estimates put CDA at 58,179 people in 2025, up from 54,628 at the 2020 Census.
As top-performing real estate experts working throughout CDA and North Idaho, we've seen how often buyers say they want a detached home but do not necessarily need a huge yard. That gap between an apartment or townhome and a traditional larger-lot house is exactly where smaller-lot detached homes could become interesting.
"Starter Home" Does Not Automatically Mean Tiny House
The phrase can be misleading. Senate Bill 1352 regulates the development pattern, including lot dimensions and certain setbacks. It does not say every home needs to be an 800-square-foot cottage. A builder could potentially use smaller lots while designing homes vertically, using compact footprints, or offering different bedroom counts and layouts.
That could give buyers another choice between high-density attached housing and a traditional subdivision with larger yards. For someone who wants a detached house, garage, and private outdoor space but would happily trade a huge lawn for a lower purchase price or easier maintenance, that could be appealing.
Smaller Lots Come With Trade-Offs Buyers Should Think About
More housing choice does not automatically mean every buyer will want the same thing. A 1,500-square-foot lot creates a very different living experience from a 7,000- or 10,000-square-foot lot.
Your Backyard May Feel More Like a Patio Than a Field
Smaller lots usually mean less private outdoor space. For a buyer who loves gardening, needs room for dogs, wants a large play area, or dreams about adding a shop someday, that may be a real drawback.
Another buyer might see the same feature as a benefit: less mowing, less landscaping, and more time enjoying the lake instead of spending Saturday maintaining half an acre. Neither perspective is wrong. The real question is whether the property matches how you actually live.
Privacy Deserves a Closer Look
When houses sit closer together, window placement, fencing, landscaping, orientation, and building height become more important. A well-designed small-lot neighborhood can still feel comfortable and private.
A poorly designed one can feel cramped. Buyers should look beyond lot size alone and ask how the homes relate to one another.
Parking Can Become a Bigger Part of the Conversation
Garages, driveway depth, guest parking, and street parking matter more when homes are closer together. Someone with three vehicles, a boat, teenagers who drive, or frequent visitors may evaluate a smaller-lot neighborhood differently from someone with one car and a simpler parking setup. That is why community design matters just as much as density.
HOAs Could Play a Bigger Role Than Buyers Expect
State law controls what cities can prohibit in qualifying starter-home subdivisions, but private community rules are a separate consideration. Future developments may still have homeowners associations, architectural standards, parking rules, landscaping requirements, rental restrictions, or other covenants depending on how the neighborhood is structured.
So even when state zoning rules make a particular development possible, buyers should still review the actual CC&Rs, HOA documents, plat, and community standards before purchasing. We've helped buyers throughout North Idaho navigate this exact kind of distinction: what the city allows is not always the same thing as what a particular neighborhood permits.
The Biggest Changes May Happen Where Neighborhoods Haven't Been Built Yet
Established CDA neighborhoods are probably not where most homeowners will notice this law first. The more interesting places to watch are larger undeveloped or redevelopment parcels inside the city where a future builder could propose a qualifying starter-home subdivision.
Instead of a parcel producing a smaller number of detached homes on conventional lots, a builder may now have more flexibility to create a denser layout with smaller individual yards. That could gradually expand the range of CDA starter homes available to buyers.
It could also create neighborhoods that look and feel different from the suburban patterns many North Idaho residents are accustomed to. The Washington Post noted that even some builders do not expect to use the absolute smallest lot size allowed by the law.
So, Will This Actually Change What Gets Built in CDA?
Most likely, it gives future developers more options. That is different from saying every new CDA neighborhood will suddenly be filled with 1,500-square-foot lots.
Builders still have to respond to buyer demand. Infrastructure still matters. Site conditions still matter. Community design still matters. And some buyers will continue wanting larger lots and more private outdoor space. But the floor has changed.
For qualifying projects, local rules can no longer simply require larger lots when a development otherwise meets the state's starter-home framework. Over time, that could make smaller detached homes more feasible on some development sites and expand the variety of housing available within the city.
Thinking about buying, selling, investing, or evaluating land in CDA as these zoning changes begin shaping future projects? Contact Real Estate Done Right. We can help you understand how neighborhood design, lot size, new development, and local market conditions fit into the bigger picture before you make a real estate decision.
FAQs
What is Idaho's new small lot housing law?
Idaho Senate Bill 1352 creates rules for qualifying "starter home subdivisions" in cities with populations greater than 10,000. These subdivisions must involve at least four acres and can use detached single-family lots no greater than 1,500 square feet.
Does the law apply in CDA?
Yes. The statute applies to cities with populations greater than 10,000, and the Census Bureau estimated CDA's population at 58,179 in 2025.
Can I subdivide my existing CDA lot into 1,500-square-foot parcels?
Not simply because of this law. SB 1352 is aimed at qualifying starter-home subdivisions involving at least four acres of land. Ordinary existing residential lots do not automatically receive a right to be divided into 1,500-square-foot parcels.
Will every new subdivision have 1,500-square-foot lots?
No. The law establishes what qualifying cities must allow for eligible projects. It does not require developers to use the smallest possible lot size, and builders may choose larger lots depending on the site and buyer demand.
When did Idaho Senate Bill 1352 take effect?
The law took effect on July 1, 2026. Cities covered by the law must amend their comprehensive plans and land-use regulations by February 1, 2027.
About Real Estate Done Right
Real Estate Done Right serves buyers, sellers, investors, and relocation clients throughout CDA and North Idaho, with a strong focus on helping out-of-state and regional buyers move confidently into the Inland Northwest.
Ranked #14 in Idaho and among the top 0.5% of agents nationwide, the team has sold more than 250 homes, averages 37 transactions per year, and has earned 85+ five-star Google reviews and 70+ five-star Zillow reviews.
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