Americans express concern over sky-high rents, as indicated by a recent survey by the Pew Charitable Trusts. Support for initiatives aimed at promoting housing construction, especially affordable units, is strong across the political spectrum.
The housing market is grappling with a severe shortage of affordable housing and an unprecedented increase in house prices. As a result, cities across the U.S. are taking measures to liberalize zoning regulations and bolster housing supply. However, these efforts often face local resistance.
In recent years, cities like Salt Lake City and Minneapolis have advanced zoning reforms, enabling the creation of various housing types traditionally restricted to single-family zones, thus increasing housing choices and lowering costs. Other cities implement Inclusionary Zoning (IZ) policies, mandating affordable units in new developments. However, this approach may inadvertently drive up costs for market-rate units, leading to reduced housing production.
Cities also offer density bonuses and expedited approval processes to developers, encouraging the construction of more accessible housing. California, for example, has enacted SB 9 and SB 10 to facilitate duplexes and small multifamily developments in single-family zones.
However, developers encounter numerous challenges, including community resistance, restrictive zoning laws, lengthy approval processes, insufficient funding, and the need to balance density with livability.
In the face of these challenges, policymakers and developers can work together to develop thoughtful zoning reforms and incentives, ultimately contributing to a more inclusive and affordable housing market.
Enrichment Data:
Current Zoning Reforms to Address Housing Shortage and High Rents
- Streamlined Permitting and Zoning:
- The American Planning Association (APA) advocates for federal funding to promote zoning reforms that increase housing choices and decrease costs, including initiatives like the Pathways to Removing Obstacles to Housing (PRO Housing) and modernized Low-Income Housing Tax Credit (LIHTC) programs.
- Cities like Salt Lake City and Minneapolis are pioneering zoning reforms, allowing missing middle housing types in single-family zones and exempting them from certain lot requirements leading to a 45% increase in permit applications for 2-4 unit buildings, respectively.
- Inclusionary Zoning (IZ):
- Implementing IZ policies that require developers to incorporate affordable units in new developments can negatively impact overall housing production, as demonstrated by Los Angeles' Transit-Oriented Communities program, where a 20% IZ requirement potentially halves new housing production.
- Density Bonuses and Incentives:
- Offering density bonuses and expedited approval processes to developers encourages the construction of affordable and mixed-income housing. Examples include California's SB 9 and SB 10, which encourage duplexes and small multifamily developments, and New York initiatives targeting dense areas around transit hubs.
- Building Code Reforms:
- There is a growing movement to reform restrictive building codes that hinder housing development. Focus has shifted towards easing the requirement for multiple exit stairs in multifamily buildings, which can significantly impact project design, cost, and feasibility.
These zoning reforms offer an opportunity for policymakers and developers to collaborate and create a more equitable and affordable housing landscape.
