Cambridge has just taken a bold step to combat its housing crisis. By eliminating single-family-only zoning and allowing multifamily housing citywide, the city aims to expand its housing supply and improve affordability.

This move echoes recent reforms in cities like Austin, which offers valuable insights into what Cambridge can expect.

What’s Changing in Cambridge?

Many cities and towns have exclusionary zoning laws, restricting land use in large portions of the city, limiting new housing supply in high-demand markets. Cambridge’s new zoning policies aim to fix that by:

Allowing multifamily buildings citywide — property owners can now build up to four units by right on lots that were previously restricted to single-family or two-family homes. 

Raising building heights — Most residential areas can now have up to four-story buildings, or six stories if affordable units are included.

Incentivizing affordability — Projects with 10+ units still must set aside 20% as affordable housing. Developments that include the required 20% affordable units can build up to six stories (74 feet) instead of the standard four-story (45 feet) limit providing developers with clear incentive to include affordable units in their plans.

Eliminating density limits, developers can build more units within a given space.

Removing parking mandates, lowering development costs and encouraging walkability.

The goal? Boost housing supply to help stabilize Cambridge’s rising home prices and rents.

Austin’s Housing Boom: A Preview for Cambridge?

Austin recently adopted similar zoning reforms, and the results have been impressive.

In 2023, Austin approved changes allowing up to three units per lot and reduced the minimum lot size from 5,750 sq ft to 1,800 sq ft. These moves unlocked thousands of new development opportunities.

The impact was swift:

• Rents dropped 22% from their peak in mid-2023.
• Nearly 50,000 new rental units were added in just two years, expanding supply by 14%.
• Home prices fell 10% in 2023, stabilizing after years of steep increases.
• Austin’s rapid growth offers a clear lesson: More homes = less pressure on prices.

Can Cambridge Expect the Same?

Cambridge’s reforms are even more ambitious than Austin’s — with taller buildings permitted and greater density encouraged. Given the city’s intense demand (fueled by tech jobs, universities, and limited land), these changes could unlock thousands of new homes.

Like Austin, Cambridge’s success will depend on how quickly developers respond. If enough new housing comes online, prices should stabilize, and rents may even decline, especially for smaller, mid-priced units.

Balancing Growth with Affordability

Critics of Cambridge’s zoning overhaul worry about gentrification and displacement. However, Cambridge’s inclusionary zoning requires developers to include affordable units in larger projects, ensuring a steady pipeline of below-market housing.

Austin’s experience shows that pairing zoning reform with affordability incentives can create new housing without overwhelming communities.

The Bottom Line

Cambridge’s zoning reform is a bold attempt to ease the city’s housing crisis. By following Austin’s lead, expanding housing options, encouraging density, and reducing development barriers, Cambridge is poised to increase supply and improve affordability.

While these changes won’t bring overnight rent cuts, Austin’s success shows that strategic zoning reforms can slow price growth, stabilize rents, and create more housing choices. If Cambridge achieves similar results, it could become a model for other cities seeking to unlock growth while keeping their communities livable and accessible.