The Texas House gave a thumbs Wednesday to a bill allowing smaller homes on smaller lots in Texas’ biggest cities, part of a broad push by state lawmakers to put a dent in the state’s high home prices.

But the House made significant tweaks that would limit how many new homes could be built under the bill, setting up a potential showdown with the Texas Senate over one of Lt. Gov. Dan Patrick’s biggest priorities.

Senate Bill 15 would reduce how much land cities say single-family homes in new subdivisions must sit on. The idea is to let homebuilders construct h…

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