Salt Lake City Zoning Changes: What Homeowners Should Know

Update, Oct. 26, 2026: In a straw poll, the Salt Lake City Council signaled it will add an owner-occupancy requirement: owners who use the new rules would have to live on the property. The council also asked staff to revisit the proposed setbacks so smaller homes better match their neighbors, and it kept the 2,000-square-foot lot area per unit rather than raising it to 3,000. Public hearings are set for November 10 and November 17, and a vote could come as soon as December. Council chair Alejandro Puy said that with the owner-occupancy rule, the number of owners adding units would likely be a couple dozen or fewer by 2030.

Salt Lake City is weighing a major rewrite of its single-family zoning. A proposal called “Expanding Housing Options” would let owners across most of the city’s residential neighborhoods build small homes, duplexes, row houses or up to four units on lots that are large enough. The Planning Commission voted unanimously in September to recommend it, and it now sits with the City Council.

If you own a home on the east side, or you’re shopping for one, here’s what the proposal actually says, what it doesn’t do, and how I’d think about it.

What the proposal would allow

The plan creates a new permitted use called “small lot dwellings.” It applies in six residential zones: R-1/5,000, R-1/7,000, R-1/12,000, R-2, SR-1 and SR-1A. According to Building Salt Lake, that’s more than 37,000 properties, and the Salt Lake Tribune reports it could open up to three-quarters of the city’s residential lots.

The core rule is simple: every unit needs 2,000 square feet of lot area. That means:

A 4,000-square-foot lot could hold two units.
A fourplex or four row houses would need 8,000 square feet, or 6,000 if the existing home is kept under a preservation bonus.
A small single-family home can have a footprint of up to 1,000 square feet; other unit types are generally capped at 850 square feet per unit.
Units in buildings 17 feet or shorter can be up to 1,700 square feet inside; taller buildings are capped at 1,200 square feet per unit.

Because small lot dwellings would be a permitted use, a project that meets the code wouldn’t need a planning petition or a public hearing.

Other changes in the package

The proposal also adjusts the base zoning rules for everyone in those zones:

Height: Pitched roofs could reach 30 feet (up 2 feet) and flat roofs 24 feet (up 4 feet). SR-1A would be 25 and 20 feet.
Setbacks: Side yards of 4 feet on one side and 10 on the other; front yards of 20 feet or matching an adjacent home.
Lot coverage: Buildings could cover up to 50% of a lot.
Lot width: Minimum lot width requirements would be removed, and the minimum lot size for a duplex in R-2 and SR-1 would drop from 8,000 to 5,000 square feet.
Flag lots: No longer a conditional use hearing, with a narrower 20-foot access strip.
Parking: One off-street space per unit, matching the city’s ADU rules.

The Planning Commission’s draft did not require owner occupancy, but in October the City Council signaled it will add a requirement that owners using the new rules live on the property. The council is also revisiting the proposed setbacks.

What it doesn’t do

Nothing in the proposal requires you to change your home. It adds options alongside existing zoning rather than replacing it. And not every lot will qualify in practice. City staff estimate about 35% of affected properties have enough open space for even one small-lot home, before accounting for trees, slope, utilities and fire access. Adding units would also need sign-off from utility providers.

Staff also expect a slow pace. They describe a 1% use rate over five years, about 373 properties, as “generous.” For context, Building Salt Lake reports 83 accessory dwelling units have been completed since ADUs became permitted by right in 2023.

What it could mean for east-side homeowners

For owners in neighborhoods like Sugar House and Yalecrest, a few practical points:

Your lot size matters more. If the rules pass, a deep or oversized lot with alley access may carry options a buyer will ask about. When I price a home, I’ll be looking at lot dimensions and zoning more closely than before.
Your street could change slowly. A neighbor could add a small home in the backyard without a public hearing. Given staff’s estimates, that’s likely to be gradual, but it’s worth knowing.
Remodel plans may open up. Higher height limits and new setback rules could affect what’s possible for an addition, even if you never add a unit.
Check other rules too. Historic district overlays, HOA covenants and private deed restrictions can still limit what you can build. The reporting I’ve seen doesn’t spell out how historic districts are treated, so confirm the details for your specific address with the city’s planning division.

What buyers should keep in mind

If you’re buying in the city, ask about the zoning, lot size and any overlays on the homes you’re considering, and what’s buildable next door. Don’t pay for development potential that hasn’t been approved: the council can still change the proposal, including setbacks and parking, before any vote.

What happens next

According to the Salt Lake Tribune, the City Council plans to mail notices to property owners whose lots might be affected, then hold its own public hearings. Public hearings are scheduled for November 10 and November 17, and a vote could come as soon as December. If you want your voice in the process, watch for that mailer, and plan on the November 10 or 17 hearing.

My take

This proposal doesn’t force anything on anyone, and most lots won’t see a new home anytime soon. But it does change what a lot in Salt Lake City could be worth to the right buyer, and it changes the questions I’ll be answering when we price your home or evaluate one you’re buying. The details for your address are what count.

Curious how your lot size and zoning factor into your home’s value today? Get an updated home value, or browse more Salt Lake and Park City neighborhood guides.

Gian Sexsmith | Coldwell Banker Realty