Rethinking Regulations: Unlocking Opportunities for Affordable and Attainable Housing

The supply of affordable housing in the United States is struggling to keep pace with demand. While the causes are multifaceted, one key part of the solution can be found in existing housing regulations—and community leaders can help by driving meaningful change. This article explores how rethinking regulatory frameworks can unlock new opportunities to expand affordable housing access.

The United States has a shortage of approximately 7.3 million rental homes that are both affordable and available to renters earning incomes at or below 30% of the Area Median Income. As a result, nearly three-quarters of those low-income households spend more than half of their income on monthly housing costs, including utilities. This is compounded by rising housing costs. In the U.S., the house price index has risen by over 100% from 2010 to 2023, with New York State seeing a 64% increase, North Carolina 95%, and Tennessee 118%. Meanwhile, the inflation adjusted median household income in these three states increased by only 10.7%, 12.6%, and 13.6% in the same time frame, respectively.

These statistics highlight a significant market imbalance, suggesting an opportune moment to re-evaluate the foundational regulations that shape housing development and access. To foster truly resilient and equitable communities, planning efforts must align housing supply with demographic realities, embracing a diverse range of housing types. Before examining the key regulatory barriers to housing development, it’s important to distinguish between the types of housing that communities can prioritize, which requires a nuanced understanding of market segments.

• Affordable housing traditionally serves households earning 80% or less of the Area Median Income.
• Attainable housing targets the middle-income demographic—those priced out of market-rate homes but ineligible for most subsidized options.
• Missing middle housing—a key focus for many communities—encompasses building forms like duplexes, townhouses, and small-scale apartment buildings that offer greater density and affordability while blending seamlessly into existing single-family or transitional neighborhoods.

Drawing on our extensive experience in land-use planning, housing analysis, and zoning updates, we have found that local land-use regulations and planning processes often hinder the development of these essential housing types. Deep-rooted regulatory frameworks—often designed for different eras—inadvertently create significant barriers to the timely and cost-effective development of new housing.

These regulatory frameworks include:

• Restrictive Zoning Practices: These encompass mandates for single-family housing, limitations on residential density, lot size requirements, and height restrictions that collectively constrain the type and scale of housing that can be built, particularly hindering the creation of diverse and denser options.

• Mandatory Parking Minimums: Parking minimums, which require a fixed number of spaces per unit, can increase development costs and limit available land. This can, in turn, make some projects difficult to finance.
• Prohibitions on Certain Housing Types: Bans or severe restrictions on certain housing—such as duplexes, triplexes, fourplexes, tiny homes, single-room occupancy units, and small-lot homes/cottage courts—eliminate affordable options from the market.
• Limitations on Accessory Dwelling Units (ADUs): Strict regulations or outright prohibitions on ADUs—secondary housing units located on the same property as a primary single-family residence—curb the creation of naturally affordable, smaller housing options within existing residential areas.
• Inadequate Infrastructure: A lack of sufficient municipal water and/or sewer infrastructure can prevent new developments or substantially increase project costs, especially in areas ripe for growth.
• Cumbersome Environmental Review Processes: Complex environmental review procedures can add substantial time and expense to projects.

Effectively addressing these barriers necessitates a strategic approach grounded in comprehensive planning and robust public outreach. Communities can begin by strengthening their Comprehensive Plan, which serves as a vital tool for understanding local demographics, assessing the current housing landscape, and identifying existing zoning limitations. This process often involves a “zoning diagnosis”—a detailed analysis to pinpoint specific restrictions hindering new housing and to evaluate current residential development patterns.

Successful implementation hinges on broad participation, including members of planning boards and zoning boards of appeals, alongside meaningful engagement from various stakeholders such as housing advocacy organizations, developers, and the public. The goal of this collaborative effort is to articulate a clear vision, establish achievable goals, and propose concrete recommendations that genuinely meet the community’s housing needs and aspirations.

Opportunities for unlocking affordable housing include:

• Diversifying Residential Typologies: Introduce opportunities for two-family dwellings in single-family districts; allow three- and four-family dwellings as permitted uses in suitable districts; permit mixed uses; remove barriers to ADUs; and allow smaller residential units (e.g., tiny homes, cottage courts) and manufactured homes.
• Promoting Affordable Housing Through Incentives: Reward the inclusion of affordable units with permitted increases in density and height. An inclusionary approach sets a minimum number of affordable units to be included, while an incentive approach may permit an increase in the number of allowed residential units (density) and/or the height of a structure.
• Applying Adaptive Reuse to Vacant Structures: Facilitate the conversion of vacant institutional (e.g., schools, religious properties, government buildings) and commercial (e.g., offices, retail spaces, malls) properties into housing, often by modifying existing zoning or establishing overlay districts.
• Considering Gentle Density Strategies: Gentle density involves infill developments where new housing choices are added in a way that is considered “gentle,” having little impact on existing neighborhoods. Prioritize areas with existing infrastructure and amenities—such as within or on the periphery of neighborhoods, hamlets, villages, and cities—especially those with existing water, sewer, community services, shopping, medical facilities, and transportation resources. When thoughtfully designed, gentle density can introduce new housing choices while respecting the character of existing neighborhoods.
• Expediting Review and Approval: Implement reforms that challenge the need for special use permits, prioritize efficient building and site plan reviews, and establish transparent project requirements and design guidelines.

Rethinking dated regulatory frameworks is critical to unlocking affordable housing opportunities. By embracing diverse housing types like missing middle and gentle density, confronting barriers such as restrictive zoning, and streamlining review processes, communities can build a more equitable and sustainable housing future. Achieving this requires comprehensive planning, robust engagement, and a commitment to implementing these crucial reforms—transforming housing from an elusive dream into a stable reality for all.