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Author | Elvira Esparza
Housing shortages have become a major challenge for cities struggling to meet the needs of growing populations. As urban areas continue to expand, accelerating the construction of new homes has become increasingly important. At the same time, limited housing supply is compounded by the financial barriers that prevent many people from accessing affordable housing.
Against this backdrop, cities face the challenge of increasing the supply of affordable housing while developing effective strategies to achieve it. However, existing zoning regulations are often too restrictive and drive up construction costs.
Fewer homes are being built, and they cost more
During the 2010s, the United States saw the lowest level of single-family home construction in more than 60 years. Just 6.8 million homes were built during the decade, compared with 12.3 million in the 2000s. Key factors behind this decline included a shortage of developable land, along with regulations and tariffs on lumber, the primary building material used for single-family homes in the United States.
As housing supply has failed to keep pace with growing demand, home prices have continued to rise. At the same time, higher construction costs have made it increasingly unprofitable for developers to build affordable housing for middle-income families, further reducing the availability of lower-cost homes.
To address these challenges, local governments have begun introducing measures to remove barriers that slow housing development. Many US cities are reviewing their zoning regulations, recognizing that overly restrictive rules make it more difficult to build affordable housing.
Dallas reformed its zoning rules to boost construction
Dallas provides a clear example of how changes in housing policy can stimulate residential development. According to the Dallas Housing Action Plan 2024, the city needs to build around 70,000 homes by 2033 to meet projected demand. A key part of this strategy has been the zoning reform, which increases the city’s capacity for housing development through changes to land-use regulations.
Among the most significant reforms are:
- Converting former commercial areas into mixed-use developments that combine housing, retail, offices and public amenities, making better use of already urbanized land.
- Promoting Transit-Oriented Development (TOD) by encouraging the construction of taller residential buildings, along with shops and offices, within walking distance of light rail stations. The aim is to reduce reliance on private vehicles while creating neighborhoods designed for pedestrians and cyclists.
- Reducing parking requirements for new developments. These regulations establish the minimum number of off-street parking spaces that developers must provide when constructing residential housing. The requirement is typically based on a set number of parking spaces per apartment. The parking reforms reduce the requirements for residential developments and eliminate mandatory parking minimums for individual properties.
- Amending the building code to allow developments of up to eight residential units and three stories, whereas previously only one or two dwelling units were permitted. The new ordinance provides a middle ground between single-family homes and large apartment complexes while also encouraging more walkable neighborhoods.
The goal of these reforms is to increase housing density while making residential development faster and more affordable.
Minneapolis: The first US city to end single-family zoning
In 2020, Minneapolis became the first city in the United States to eliminate single-family zoning, allowing two- and three-unit homes to be built in every neighborhood. Through the Minneapolis 2040 Plan, the city made it easier to develop duplexes and triplexes throughout the city.
The reform increased housing density in the downtown area and along public transit corridors by eliminating minimum parking requirements and allowing the construction of accessory dwelling units (ADUs), which are secondary homes built on the same lot as a primary residence. ADUs can be created within an existing home, such as in an attic or basement, attached to the main house, or built as a separate structure.
As a result of these measures, Minneapolis expanded its housing stock by 12% in just five years.
More broadly, US cities that have reformed their zoning regulations to support higher-density housing have accelerated residential construction while creating neighborhoods with a greater supply of affordable homes.
Images | Mark Patterson, Robert So, vicvaz/iStock
