Confronting the Housing Affordability Crisis through Zoning Reform
Restrictive and outdated zoning practices have long played a significant role in exacerbating the affordable housing crisis plaguing communities across the United States. Zoning, initially designed to regulate land use and density, has evolved into a major impediment for growing cities seeking to adapt to current circumstances. Historically, exclusionary zoning has been used by affluent areas to boost property values, decrease tax burdens, and prevent the influx of non-white residents, leading to a stark shortage of housing stock that fails to meet demand.
This crisis has only worsened in recent years, with home prices experiencing an alarming growth rate of nearly 20% in 2021 and rents surging. Restrictive zoning practices, which constrain over 75% of residential areas in major cities to single-family homes, significantly contribute to these affordability challenges. Outdated zoning ordinances, some dating back over a century, increasingly obstruct the capacity of cities to adapt and grow in ways that align with the evolving needs of their communities.
“Just because there’s overall economic growth at the city level, it doesn’t mean those benefits trickle down. A lot of times you end up seeing increased disparities within cities.” – Haegi Kwon, Policy Analyst, Lincoln Institute of Land Policy
Rethinking Zoning: Pathways to Inclusive and Sustainable Development
In response to these pressing issues, a growing number of cities and states are exploring innovative zoning reform strategies that aim to promote more affordable, equitable, and environmentally sustainable development. By examining and updating existing zoning codes, communities can identify opportunities to increase housing supply and diversify the built environment, ultimately fostering more inclusive and vibrant neighborhoods.
Eliminating Single-Family Zoning
One promising approach is the elimination of single-family zoning, which has long been associated with higher housing costs, reduced construction activity, and decreased housing supply elasticity. By removing these restrictive barriers, developers gain the flexibility to build a wider range of more affordable housing types, such as townhomes, duplexes, or apartment buildings.
“Approximately 75 percent of land in American cities is constrained by zoning practices that exclusively permit single-family residences. This restrictive zoning limits the variety of buildings that can be constructed and hinders the ability of low-income families to live in resource-rich neighborhoods.”
While the impact of such zoning reforms can vary, communities that have embraced this change, such as Minneapolis, have seen positive outcomes. After eliminating single-family zoning in 2019, the city experienced a doubling of permits for small apartment buildings, though the total number of housing units remained relatively low compared to the city’s overall households. This limited progress highlights the need for a more comprehensive approach that addresses other restrictive elements, such as height limitations and minimum lot sizes.
Encouraging Transit-Oriented Development
Another impactful strategy is to encourage higher-density development near transit hubs. By increasing the number of allowed units in proximity to public transportation, cities can promote more sustainable, transit-oriented communities that reduce greenhouse gas emissions and enhance access to resources and opportunities for residents.
“By encouraging more people to live in cities and promoting transit-oriented development, greenhouse gas emissions can be dramatically reduced. This shift can help combat the negative environmental impacts of widespread vehicle usage, ultimately contributing to a greener and more sustainable future.”
Eliminating off-site parking requirements can also support this goal, as it allows developers to better align projects with market demands and accessibility needs, while also encouraging reduced car ownership and driving.
Enabling Accessory Dwelling Units and Single-Room Occupancies
Amending zoning regulations to permit the development of accessory dwelling units (ADUs) and single-room occupancies (SROs) can play a crucial role in addressing housing affordability and providing a wider range of accommodation options. By easing restrictions on these housing types, cities can increase the availability of affordable units, particularly for low-income individuals and dependents.
Leveraging State and Federal Incentives
Incentivizing zoning reform at both the state and federal levels can further drive progress in addressing the affordable housing crisis. Grant programs and funding contingencies that encourage localities to embrace comprehensive zoning reform can provide powerful motivation for communities to update their land-use policies.
“By linking transportation funding, community development block grants, or surface transportation grants to requirements for amending zoning, communities would have a strong incentive to embrace zoning reforms that promote denser development and more affordable housing options.”
At the state level, recent legislative efforts, such as those seen in Oregon, California, Connecticut, Massachusetts, and Utah, have demonstrated the potential impact of state-level policy changes. By setting the stage for meaningful zoning reform and providing various carrots and sticks, states can effectively support their localities in tackling affordability challenges.
Fostering Inclusive and Sustainable Community Development
Comprehensive zoning reform is just one component of a broader shift toward more inclusive and sustainable community development practices. As communities rethink their economic development strategies, there is a growing recognition that traditional approaches often fail to address persistent inequities and may even exacerbate them.
Looking Inward, Leveraging Assets, and Locking in Prosperity
Haegi Kwon, a policy analyst at the Lincoln Institute of Land Policy, has proposed a three-part framework for community-centered economic development that prioritizes resident health, equity, and wellbeing. This approach emphasizes the importance of “looking in” to identify and nurture existing community assets, “leveraging” those assets through collaboration and resource-sharing, and “locking in” prosperity by promoting long-term stability and self-sufficiency.
“This framework emphasizes the importance of identifying and nurturing existing assets, collaborating to leverage these assets, and promoting greater community stability.” – Haegi Kwon, Policy Analyst, Lincoln Institute of Land Policy
The experience of Invest Appalachia, a regional social investment fund, illustrates the power of this approach. By conducting an “open-eyed analysis” of the Appalachian region’s opportunities and gaps, the organization was able to identify key assets, such as an active network of nonprofits, and then leverage those assets through collaborative initiatives and innovative financing mechanisms like credit enhancements. This helped to unlock investment capital and set the stage for more sustainable, community-driven development.
Prioritizing Resident Wellbeing and Shared Ownership
Similarly, the Russell: A Place of Promise initiative in Louisville, Kentucky, has centered its efforts on prioritizing resident wellbeing and fostering shared ownership models. By deeply engaging with community members, the organization has built trust and co-created strategies that address local needs, from affordable housing and small business development to workforce training and guaranteed income programs.
“It’s about investing in the people of the community, and as we invest in them, and work in partnership with them, being able to gain insights that then help us inform our strategies on the place side.” – Cassandra Webb, Co-Lead, Russell: A Place of Promise
The initiative’s commitment to resident-led decision-making and shared ownership models, such as community land trusts, demonstrates a powerful approach to locking in long-term stability and opportunity for the Russell neighborhood.
Embracing Context-Specific, Community-Driven Solutions
As communities across the country grapple with the complex challenges of affordable housing and inclusive development, it’s clear that there is no one-size-fits-all solution. The unique circumstances, resources, and capacities of each locality must be carefully considered to craft effective, tailored strategies.
“The trajectory of zoning reform will vary significantly, shaped by the interplay of resources, capacities, and local factors. This variation serves as a reminder that the pursuit of zoning reform is not a one-size-fits-all endeavor, but rather a nuanced and context-dependent process that must be tailored to address the distinctive requirements of individual communities.”
By drawing insights from successful initiatives like those in Appalachia and Louisville, and by embracing a community-driven, asset-based approach, cities and towns can chart a path toward more equitable, sustainable, and prosperous futures. Through collaborative efforts and a steadfast commitment to empowering residents, local leaders can unlock the potential of their communities and build a more inclusive and resilient built environment.
To learn more about innovative approaches to affordable housing and community development, visit https://localbuilderlondon.co.uk/.
