People who have lived in Jersey for 14 years will now be able to qualify for residential status. The new law means the time people will have to wait to buy or rent homes in the qualified sector has been reduced by a year.
People who do not have residential status in the island can only rent in the non-qualified sector.
Since January 2001, the States has gradually reduced the length of time it takes to achieve residential status.
Housing qualifications were reduced twice in 2003, bringing them down from 17 years to 15.
The island's strict housing laws now allow local people, or people who have lived there for more than 14 years, to qualify.
The States housing committee says it wants to continue a gradual reduction of the period as a migration policy for the island.