Mitchell Allen Kennedy understands that the housing crisis gripping the United States reflects a complex interplay of outdated zoning laws, regulatory hurdles, and decades of underproduction. Today’s housing landscape is defined by shortages, especially in urban and high-growth areas.
Developers face a maze of zoning rules, public opposition, and regulatory delays that often make new housing development financially or logistically unfeasible. However, a growing number of policymakers, cities, and housing advocates are pushing for reforms to loosen restrictions and streamline approvals.
Key Barriers in 2026
Many cities continue to enforce outdated zoning codes that limit housing density in areas with the highest demand. Rules that allow only single-family homes on large lots restrict the development of duplexes, triplexes, and apartment buildings, even in neighborhoods with access to transit, schools, and jobs.
Lengthy permitting processes and inconsistent regulations from one municipality to the next further complicate housing development. Delays caused by design reviews, neighborhood appeals, or unclear code interpretations can add months or even years to project timelines.
Regulatory Challenges Facing Developers
Mitchell Kennedy explains that beyond zoning, developers must navigate a complex web of regulatory requirements that often delay or derail projects. Environmental impact reviews, while important, can be drawn out and burdensome when applied to infill developments or projects in already urbanized areas.
Public resistance also plays a role, as opposition from local residents can prompt additional hearings, legal challenges, or pressure on elected officials to reject projects. This dynamic, often referred to as NIMBYism, has impeded the development of much-needed housing across both coasts and in growing inland cities.
Rising costs associated with compliance, legal fees, and time spent in permitting limbo translate into higher prices for buyers and renters.
Policy Changes and Reform Trends
Mitchell Allen Kennedy says that in recent years, more states have taken bold steps to revise zoning laws and streamline housing approvals. California passed legislation that allows accessory dwelling units and duplexes on lots previously zoned for single-family use. Similar measures in Oregon and Maine aim to promote density and reduce exclusionary land-use practices.
Federal agencies are also playing a more active role by offering grants and incentives tied to housing production. These efforts are encouraging cities to rethink outdated codes and prioritize transit-oriented development. Some jurisdictions have seen positive results by cutting back on discretionary approvals and introducing clearer, faster permitting pathways. As these programs expand, more municipalities may follow suit.
Cities such as Minneapolis have eliminated single-family-only zoning, allowing greater housing diversity. These policy shifts are still new, but early signs point toward improved housing availability and more equitable development patterns.
Practical Solutions to Support Housing Projects
One effective strategy, Mitchell Kennedy notes, is to update local zoning codes to allow greater flexibility in housing types and lot configurations. By enabling townhomes, small apartment buildings, and co-living arrangements, municipalities can make better use of existing land and infrastructure.
Some cities have adopted by-right approval processes that eliminate unnecessary delays. These measures allow certain projects to proceed without lengthy public hearings, provided they meet baseline criteria. Developers are also responding to new incentives, such as density bonuses or expedited reviews.
Stakeholder Collaboration and Future Outlook
Mitchell Allen Kennedy suggests that building enough housing to meet future demand will require close collaboration between developers, local governments, and community organizations.
Inclusive planning processes that center on data transparency and shared goals can help smooth opposition and align interests. Trust-building and early engagement are proving essential to overcoming entrenched resistance.
Disclaimer: Written in partnership with APG.
