New York City planners understand the problem with zoning laws. They are “outdated, highly restrictive and overly complicated,” resulting in fewer dwelling units and higher rent for people who can least afford to pay.
This is the conclusion of City of Yes for Housing Opportunity, an initiative that New York Mayor Eric Adams announced with urgency on Sept. 21. Families need help as affordable options dwindle, and median sale prices of existing homes remain at near-record highs. Yet, New York’s public review process will not even start for six months.
If the usual pattern holds, the waiting will be followed by talking.
Officials in Austin, Texas, have been discussing zoning reform for years. Officials in Gainesville, Florida, eased restrictions on residential properties in 2022 but backtracked in January — before anyone could benefit. Virginia lawmakers considered granting statewide permission for accessory dwelling units, sometimes called “ADUs” or “granny flats,” but tabled the measure in February. And Colorado lawmakers flirted with new land-use rules but voted “no” on the final day of the legislative session.
Bureaucrats tend to move slowly, although policymakers in some places like Montana have gotten serious. The Department of Housing and Urban Development is spending $85 million to spur additional zoning reforms, but that money doesn’t become available until next year, meaning any actual reform is even further in the future.
Other necessary changes could come from litigation. Property owners have a right to use their land in reasonable ways, which includes offering affordable housing to their relatives or neighbors in need. If the zoning police want to interfere, they need good reasons. Yet regulatory overreach is common.
Three cases from the Institute for Justice show the harm.
Seattle homeowner Anita Adams simply wanted to build a modest addition to accommodate her two adult children, who needed somewhere to live after college. The city demanded more than $75,000 before Adams could start. The reason? Seattle charges a “housing affordability” fee. Somehow, the city thinks the best way to help at-risk families is to make construction more expensive — even for people like Adams, a longtime government employee with a limited budget.
Cindy Tucker faced her own roadblocks in Gordon County, Georgia. Her charity, Tiny House Hand Up, wanted to fill a niche for smaller, less costly homes. Yet zoning officials blocked the project. The reason? People in power worry about attracting “riffraff,” so they enforce square footage minimums. The smallest home permitted in some neighborhoods is 1,150 square feet. Tiny House Hand Up wanted to build houses half that size.
Robert Calacal, a homeowner in Meridian, Idaho, did not want to build anything. He just wanted to lease part of his land for a tiny home on wheels. Yet, when his tenant arrived and parked in a side yard on his private property, the zoning police evicted her. The reason? The city allows accessory dwelling units, but only if they have a permanent foundation.
All these people fought back with constitutional lawsuits, and their cases are pending. Policymakers do not need to wait for court orders. They can act immediately to help struggling families. Time is of the essence.
The average price of a U.S. home has climbed above $415,000, and the median rent has topped $2,000 monthly. Many families are priced out of the market. It is no surprise that more than 400,000 people in the United States experienced homelessness in 2022, and more than 19 million U.S. households spent more than 30 percent of their budget on rent.
Things could get worse as the population ages and people on fixed incomes look for affordable housing that does not exist. The environment could also suffer, as families move farther from population centers and commute times increase.
Many factors contribute to the housing crisis, but New York picked a good place to start with zoning laws. People like Anita Adams, Cindy Tucker, and Robert Calacal already have solutions. Policymakers just need to get out of the way and let the innovation happen.
